The years-long public war between Elon Musk and Sam Altman has entered its most consequential phase, with a federal trial now under way in Oakland, California that could reshape the structure and leadership of OpenAI and carry significant implications for the future of artificial intelligence.
Altman and Musk co-founded OpenAI in 2015 alongside several other Silicon Valley figures. The company was launched as a non-profit with the stated goal of advancing artificial intelligence in a way that was most likely to benefit humanity, unconstrained by financial return. Disagreements arose between the pair over the company's direction in subsequent years, with Musk exiting in 2018 and providing no further financing.
Following Musk's departure, OpenAI launched ChatGPT, secured billions in investment from Microsoft, and restructured towards a commercial hybrid model that retained a non-profit parent alongside a for-profit arm.
Musk filed the lawsuit against OpenAI, Altman, and president Greg Brockman in 2024, arguing that the company had broken from its original commitment to remaining a non-profit and that Altman had betrayed both him and the founding objective by turning it into a for-profit entity. Musk is seeking over $134 billion in damages—funds which, if awarded, would go to OpenAI's non-profit arm rather than to him personally. He is also pushing for Altman and Brockman to be removed from their positions and for the company to revert to its non-profit structure.
Microsoft is also named as a defendant, with Musk alleging the company helped transform OpenAI into what he describes as a "get-rich-quick scheme." Microsoft has denied the claims.
OpenAI has called the lawsuit "baseless" and accused Musk of a "campaign of harassment," stating on a dedicated webpage that he was motivated by "jealousy, regret for walking away from OpenAI and a desire to derail a competing AI company." The company also said that Musk had in the past supported a for-profit entity being the next phase for OpenAI.
Musk has continued to air his grievances publicly. Posting on X ahead of the trial, he wrote: "They stole a nonprofit. It's not right."
The trial began on Monday, with jury selection taking place on the first day and opening statements beginning Tuesday. Both Musk and Altman are expected to testify, spending at least six hours each on the stand. Brockman and Microsoft chief executive Satya Nadella have also been named in a list of witnesses who may be called. The trial is expected to last approximately three weeks.
The case carries significant financial stakes for OpenAI, with potential damages and reputational costs that could complicate its push towards artificial general intelligence and its anticipated initial public offering later this year. Julia Powles, executive director of the UCLA Institute for Technology Law and Policy, said that structural reform of OpenAI, including leadership changes, a shift in its for-profit versus non-profit structure, or even a company breakup, was "theoretically on the table" if Musk were to prevail.
