Musk and Altman face off in court as trial over OpenAI’s founding mission starts
A bitter feud between two of Silicon Valley’s most prominent figures, Elon Musk and Sam Altman, reaches a dramatic climax as their long-running lawsuit over OpenAI heads to trial Monday in federal court here.
Musk, the Tesla and SpaceX CEO, accuses Altman, OpenAI, its president Greg Brockman, and major investor Microsoft of betraying the company’s original nonprofit mission. He claims they transformed OpenAI from an organization dedicated to developing artificial intelligence for the benefit of humanity into a for-profit powerhouse driven by commercial interests. The suit alleges breach of contract, breach of charitable trust, and unjust enrichment.
Jury selection is scheduled to begin Monday morning at the U.S. District Court for the Northern District of California in Oakland, with opening arguments expected Tuesday. The liability phase of the trial, presided over by U.S. District Judge Yvonne Gonzalez Rogers, is anticipated to last through mid-May, running Mondays through Thursdays. If the jury finds liability, a separate remedies phase would follow. The jury’s role is advisory, with the judge making the final decisions.
On Friday, April 24, 2026, Judge Gonzalez Rogers dismissed Musk’s fraud and constructive fraud claims at his own request to streamline the case and keep the focus on whether OpenAI abandoned its charitable mission in favor of becoming a “wealth machine.” The remaining claims—breach of charitable trust and unjust enrichment—will proceed.
OpenAI has strongly denied the allegations, arguing that Musk himself agreed in 2017 that a for-profit structure would eventually be necessary. The company portrays the lawsuit as driven by “jealousy” and “regret” after Musk left the board in 2018 and ceased funding. It maintains that Musk’s roughly $38 million contribution in the early years was a tax-deductible donation to the nonprofit, not an investment entitling him to ownership or control.
The case stems from OpenAI’s founding in 2015 as a nonprofit by Musk, Altman, Brockman, and others. Musk provided significant early funding but grew frustrated with the pace of progress and reportedly attempted to gain more control before departing. In the years after his exit, OpenAI released ChatGPT, secured tens of billions from Microsoft, and skyrocketed in value. In October 2025, OpenAI completed its long-planned restructuring, converting its main operating arm into a public benefit corporation (a for-profit entity with a stated commitment to social good) while remaining overseen by the original nonprofit.
Musk is seeking sweeping remedies, including the removal of Altman and Brockman from their leadership roles, reversal of the for-profit restructuring, and substantial damages—reported in the range of $134 billion or higher in some filings, which he has proposed redistributing to OpenAI’s nonprofit arm rather than keeping personally. Some estimates of potential damages have reached as high as $150–187 billion, reflecting claimed “wrongful gains” tied to his early support.
The trial is expected to feature high-profile testimony from Musk, Altman, Microsoft CEO Satya Nadella, and other Silicon Valley insiders, along with internal emails, texts, and communications that could reveal candid behind-the-scenes details of the company’s evolution and the personal rift between the two founders. Witnesses may include former OpenAI chief technology officer Mira Murati.
For OpenAI, the stakes are enormous. The company, currently valued around $852 billion to potentially nearing $1 trillion, is a leader in the AI boom. A ruling against it could force major governance changes, financial payouts, or disruptions at a critical time in the global race to develop advanced AI. Musk, who has since founded rival xAI, has framed the suit as a defense of OpenAI’s original humanitarian goals rather than a personal financial claim.
Both sides have traded sharp public accusations for years, with the courtroom now set to air their competing narratives about ambition, betrayal, and the future of artificial intelligence. The proceedings promise to be one of the most closely watched tech trials in recent memory, shining a spotlight on how Silicon Valley’s biggest players balance profit with promises to benefit humanity. (ILKHA)
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