Musk and Altman Set for Trial Over OpenAI's Shift From Nonprofit Roots

Two of the most powerful figures in technology will testify before a federal judge next week in a dispute that could reshape control of the artificial intelligence company at the center of an industry boom now valued above $850 billion. Elon Musk accuses OpenAI, CEO Sam Altman and president Greg Brockman of breaching the organization's 2015 founding promise to pursue artificial intelligence solely for humanity's benefit rather than profit. OpenAI calls the claims sour grapes from a competitor whose own xAI startup launched in 2023, shortly after ChatGPT ignited global interest in generative AI.

The case, filed by Musk in August 2024, heads to trial Monday with jury selection in Oakland, California, before U.S. District Judge Yvonne Gonzalez Rogers. The jury will serve in an advisory capacity only; the judge makes the final call on liability and any remedies. Musk, who contributed roughly $38 million to OpenAI between 2015 and 2017 before resigning from its board in 2018, initially sought more than $100 billion in damages. After pretrial rulings that narrowed the case, he now requests an unspecified sum to support the nonprofit arm, to be paid primarily by OpenAI's for-profit operations and investor Microsoft. He also seeks Altman's removal as CEO and from the board. Court records show Judge Rogers dismissed Musk's fraud claims at his own request in recent weeks, allowing breach of contract and unjust enrichment allegations to proceed. She has described the core promise dispute as a "toss up" based on evidence reviewed so far.

Internal documents disclosed during discovery include diary entries from Brockman expressing relief at Musk's 2018 departure and strategizing around revenue growth. One 2017 note read that OpenAI's shift toward profit would mean "a very nasty fight." OpenAI maintains Musk participated in early talks about a for-profit structure and that the Microsoft partnership became essential for the computing resources required as the company scaled. Microsoft CEO Satya Nadella is expected to testify that his company had no knowledge of any special obligations to Musk and supported OpenAI through Altman's brief 2023 ouster and reinstatement. Other scheduled witnesses include OpenAI executive Mira Murati, Musk associate Shivon Zilis and both principals, each anticipated to spend several hours on the stand.

The trial arrives as OpenAI weighs a potential initial public offering. Musk, whose fortune exceeds $700 billion across Tesla, SpaceX and xAI, has framed his suit as defense of the original altruistic mission. He has pointed to OpenAI's $850 billion-plus valuation and its licensing deals as evidence of deviation. OpenAI counters that its hybrid structure still channels profits toward safety research and that Musk sought greater control, including a demand to become CEO before his exit. A dozen former OpenAI employees filed an amicus brief last year supporting Musk's interpretation of the founding agreements. OpenAI responded with its own countersuit alleging Musk's litigation amounts to harassment aimed at slowing its progress to benefit xAI.

Pretrial hearings revealed Judge Rogers' efforts to keep the proceedings focused. She barred questions about Musk's alleged ketamine use but permitted inquiry into his 2017 attendance at Burning Man and his relationship with Zilis. The judge has rejected Musk's claims that xAI suffered irreparable harm from OpenAI's growth, noting his rival venture raised $11 billion regardless. Both sides have submitted thousands of pages of evidence tracing conversations from OpenAI's origins in a San Francisco apartment to the present AI race. The central unresolved question remains whether OpenAI's evolution violated binding commitments made to Musk and early supporters or represented a pragmatic adaptation that he once understood.