OAKLAND, California — A closely watched civil trial involving Elon Musk and Sam Altman opened Tuesday in federal court, setting the stage for a legal battle that could influence the future direction of artificial intelligence development.
The case centers on the transformation of OpenAI from a nonprofit organization into a profit-driven enterprise now valued at hundreds of billions of dollars. Opening statements follow the selection of nine jurors on Monday.
Musk alleges that Altman and OpenAI President Greg Brockman violated the company’s founding mission by prioritizing commercial gains over its original goal of developing AI for the benefit of humanity. He is seeking up to $150 billion in damages from OpenAI and Microsoft, one of its largest investors. Musk has said any awarded damages would be directed to OpenAI’s charitable arm.
In addition, Musk is asking the court to require OpenAI to return to its nonprofit structure and to remove Altman and Brockman from leadership positions.
Musk, who co-founded OpenAI in 2015 and contributed approximately $38 million in early funding, left the company’s board in 2018. He claims the organization’s creation of a for-profit entity in 2019 marked a departure from its founding principles.
OpenAI has rejected the allegations, arguing that Musk supported the structural changes at the time and only filed suit after failing to secure a leadership role. The company also contends that Musk’s actions are tied to competition from his own AI venture, xAI.
U.S. District Judge Yvonne Gonzalez Rogers has indicated she wants jurors to begin deliberations on liability by May 12. If liability is established, the court will later determine appropriate remedies.
Musk, Altman, and Satya Nadella are among those expected to testify. Musk could take the stand as early as this week.
The dispute traces back to OpenAI’s founding, when Musk and Altman launched the organization to compete with major technology firms such as Google while emphasizing safety and public benefit in AI development.
Legal experts say the trial could provide rare insight into internal decision-making at OpenAI as it evolved from a small research group into a major industry player. It may also affect the company’s plans for a potential initial public offering and shape broader public perceptions of artificial intelligence governance.
OpenAI has since restructured as a public benefit corporation, allowing it to attract investment while maintaining a nonprofit component. The nonprofit arm retains a significant ownership stake alongside investors, including Microsoft.
The case unfolds amid intensifying competition in the AI sector, with OpenAI investing heavily in computing infrastructure while facing rivals such as Anthropic.
Edgardo Hernal started college at UP Diliman and received his BA in Economics from San Sebastian College, Manila, and Masters in Information Systems Management from Keller Graduate School of Management of DeVry University in Oak Brook, IL. He has 25 years of copy editing and management experience at Thomson West, a subsidiary of Thomson Reuters.
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