The case, filed by Musk, centers on OpenAI’s shift from a nonprofit organization to a highly profitable enterprise worth hundreds of billions of dollars. The initial hearing took place in a federal court in Oakland, California, following the selection of a nine-member jury shortlist on Monday.
Musk alleges that Altman and OpenAI President Greg Brockman betrayed both him and the public by abandoning the company’s original mission of serving humanity. He claims the organization has instead become a “profit-driven machine” benefiting executives and investors.
Musk is seeking $150 billion in damages from OpenAI and its major backer Microsoft. He has requested that the funds be directed to OpenAI’s charitable arm. He is also calling for the company to return to its nonprofit structure and for Altman and Brockman to be removed from leadership positions.
Musk, who co-founded OpenAI in 2015, says he contributed $38 million in early funding to support its original mission. He argues that the company shifted to a for-profit model in 2019 after he left its board in 2018.
OpenAI disputes these claims, stating that Musk was aware of and supported the transition. The company also alleges that Musk’s lawsuit is driven by rivalry, as he seeks to advance his own AI venture, xAI.
The case is being overseen by U.S. District Judge Yvonne Gonzalez Rogers, who has indicated she expects a jury decision by May 12. Musk, Altman, and Microsoft CEO Satya Nadella are all expected to testify, with Musk likely to take the stand later this week.
Founded by Musk and Altman to compete with Google and develop AI for the benefit of humanity, OpenAI has grown from a small lab into a company reportedly valued at over $850 billion.
The lawsuit could disrupt OpenAI’s potential plans for an initial public offering and intensify public debate over the ethical and commercial direction of AI. Competitors such as Anthropic are also racing to capture market share in the rapidly evolving sector.
OpenAI has recently restructured into a public benefit corporation, with its nonprofit arm retaining a 26% stake. Observers say the outcome of this legal battle will not only determine the future of OpenAI but could also influence how artificial intelligence is governed, developed, and commercialized worldwide.
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