Elon Musk takes the stand in OpenAI lawsuit that could reshape the company's future

Musk and Altman face off in trial that will determine OpenAI's future

A hotly anticipated trial starts this week, where Elon Musk will attempt to prove that OpenAI, under Sam Altman, has abandoned its mission to remain a nonprofit in order to ensure that artificial intelligence serves humanity, and not just billionaires. Many view the lawsuit as a grudge match between Musk -- who left OpenAI after serving as an early major donor and advisor -- and Altman -- who currently runs OpenAI, despite insiders' allegedly growing distrust in his commitment to the dominant AI firm's mission. But the lawsuit is about much more than a couple billionaires' big egos. The outcome could radically change the AI landscape, impacting how OpenAI runs and what resources the firm will have to uphold its mission. If Musk wins, OpenAI's hopes of growing a for-profit arm that can fund the nonprofit could be dashed. Additionally, Brockman and Altman could be dropped as officers, and Altman risks losing his seat on OpenAI's board. If Altman wins, OpenAI's mission could be lost -- with the AI startup perhaps following in the footsteps of Google, which famously vowed that "Don't be evil" drove its business decisions, but no longer seems bound by that unofficial motto. Jury selection starts Monday, but jurors won't have the final say in either the liability phase of the trial or the remedies phase, if the trial reaches that point. Instead, a US district judge in Northern California, Yvonne Gonzalez Rogers, will consider the jury's insights during phase one before making the ultimate decision in both phases. Since the lawsuit was filed, OpenAI has cast Musk as intensely jealous of Altman's company, while claiming that the litigation is nothing more than a continuation of an alleged harassment campaign. OpenAI suspects that Musk is using the litigation as a delay tactic while his own AI firm, xAI -- recently folded into SpaceX -- races to catch up to OpenAI's lead after the launch of ChatGPT in 2022. However, Musk, who unsurprisingly spent the morning ahead of jury selection posting jabs at Altman and OpenAI on X, recently vowed to give all damages to OpenAI's nonprofit arm if he wins. That move, which came late in the litigation, seemingly underscored to jurors that, of the two billionaires, Musk is supposedly the one most committed to AI safety and AI as a public good. "Scam Altman and Greg Stockman stole a charity," Musk wrote on X on Monday. "Full stop." In the post, Musk pleaded his case, claiming that a loss would mean that "it is OK to loot a charity" in America, which he said risked undermining "all charitable giving in the United States forever." "I could have started OpenAI as a for-profit corporation," Musk wrote. "Instead, I started it, funded it, recruited critical talent, and taught them everything I know about how to make a startup successful FOR THE PUBLIC GOOD. Then they stole the charity." As of this writing, Altman has not posted about the trial starting. However, in February, Altman wrote on X that he was "really excited to get Elon under oath in a few months, Christmas in April!" On Monday, the OpenAI newsroom echoed that post, writing on X that "we can't wait to make our case in court where both the truth and the law are on our side." "This lawsuit has always been a baseless and jealous bid to derail a competitor. We'll also finally have the chance to question Mr. Musk under oath before a jury of Californians about this attempt to undermine our work to ensure that artificial general intelligence (AGI) benefits all of humanity," OpenAI said. Revealing docs may tip the win to Musk Thousands of pages of internal documents have already been shared, and both Musk and Altman have given depositions ahead of the trial's start. According to Reuters, the "bitter legal fight" may be decided by "a few pages " in a personal diary written by Greg Brockman, OpenAI's president and a co-founder. "This is the only chance we have to get out from Elon," Brockman wrote in 2017, while pondering if Musk would be the "glorious leader" that he would pick to run the company. At that time, the other co-founders were sincerely questioning both Musk and Altman's motivations for wanting to become OpenAI's CEO. In the earliest emails that Musk and Altman exchanged in 2015, the two agreed that to prevent Google from dominating AI -- or a similarly financially motivated startup -- OpenAI should be set up "so that the tech belongs to the world via some sort of nonprofit, but the people working on it get startup-like compensation if it works." Musk reminded Altman that he wouldn't "fund something that goes in what turns out to be the wrong direction," and Altman commended Musk as the "main inspiration" behind early governance talks. By early 2016, emails suggested that Musk was meeting with OpenAI's leadership team weekly to ensure "OpenAI's long term success" and had agreed to increase donations to keep OpenAI's mission on track. The partnership seemed to be going so well that by mid-2016, Musk was gifting the other founders with Teslas in appreciation for what they had done "to get OpenAI to where it is today." Within months, however, the friendliness fell off, and in September 2017, Musk bluntly told Altman, Brockman, Ilya Sutskever, and Sam Teller that he'd "had enough." That email came after Sutskever and Brockman admitted that they had been too "afraid of harming the relationship" or losing their partnerships with Altman and Musk by raising concerns about either man's fitness to lead OpenAI. "Elon: We really want to work with you," that email said, insisting they were willing to do "whatever it takes to work with you. But we realized that we were careless in our thinking about the implications of control for the world." "The current structure provides you with a path where you end up with unilateral absolute control over the AGI," their email said. It continued: "You stated that you don't want to control the final AGI, but during this negotiation, you've shown to us that absolute control is extremely important to you. As an example, you said that you needed to be CEO of the new company so that everyone will know that you are the one who is in charge, even though you also stated that you hate being CEO and would much rather not be CEO. Thus, we are concerned that as the company makes genuine progress towards AGI, you will choose to retain your absolute control of the company despite current intent to the contrary. We disagree with your statement that our ability to leave is our greatest power, because once the company is actually on track to AGI, the company will be much more important than any individual." "The goal of OpenAI is to make the future good and to avoid an AGI dictatorship," their email reminded Musk. Similarly, they shared concerns about Altman, noting to him that "we haven't been able to fully trust your judgements throughout this process." "We don't understand why the CEO title is so important to you," their email said. "Your stated reasons have changed, and it's hard to really understand what's driving it. Is AGI truly your primary motivation? How does it connect to your political goals? How has your thought process changed over time?" In response, Altman said that he lost trust in Brockman and Sutskever, whose "messaging was inconsistent and felt childish at times." Altman was also "bothered by how much Greg and Ilya keep the whole team in the loop with happenings" around a potential for-profit restructuring, the email said. At that point, the for-profit bid was briefly dropped, and Musk left the OpenAI board. About 13 months later, OpenAI formed a for-profit entity in March 2019, Reuters noted. That put the company strategically on track to potentially go public in the final quarter of 2026 -- following an $852 billion valuation -- unless Musk's lawsuit blocks the move. Musk and Altman lock horns in depositions Musk contributed about $38 million to OpenAI during its early years, which was about 60 percent of the donations that helped propel the AI firm to its success today. According to Musk, he's now owed $134 billion in damages if the judge agrees that OpenAI abandoned its mission. In total, OpenAI and Microsoft could owe more than $150 billion, Musk's expert has estimated. OpenAI has mocked that math, so it remains unclear how high damages could go if the second part of the trial becomes necessary. OpenAI maintains that Musk's contributions were tax-deductible donations -- not investments -- and he therefore has no claim to ownership over the firm, The Guardian reported. The credibility of both men has been called into question. During his deposition, Musk was called out for inflating his early contributions to OpenAI. He claimed it was a "mistake" that he initially posted on X that he donated $100 million, simply forgetting how much he ultimately paid out. Inconsistencies may matter to the jury, which will be tasked with weighing which tech leader is most credibly committed to AI safety. Musk testified that while he couldn't remember exact details of an early dinner with co-founders where the mission was discussed, he did believe that he was the driving force behind OpenAI's early bid to put safety first when developing AI. To help prove this, Musk shared the reason why he didn't start an AI company until 2023, when he founded xAI. "The reason I didn't initially go into artificial intelligence was because I wasn't sure whether the double-edged sword of AI would do more harm or more good," Musk testified. However, this initial mentality that "the danger of an apocalypse was too great" was "naïve," he said, "because even if I don't focus on AI, others will." Altman has muddied the waters on Musk's moral stance, saying in his deposition that he didn't know if AI safety was Musk's "top thing" but rather that he turned to Musk to help launch OpenAI because he felt that he could convince Musk to "care more" about AI safety. When testifying, Altman disputed Musk's claims that he attracted early talent and additional funders, saying that some people had a "great deal of confidence" in Musk, while others had "serious concerns." To back his claims that he's the CEO more invested in AI safety, Altman lashed out at Musk's AI company, xAI. He claimed that Musk released "anime sex bots for children" and has shown a "flagrant disregard of basic safety testing" with Grok. (He did not at that time mention OpenAI's reputation as harmful after lawsuits linked ChatGPT to suicides and murders.) Like Musk, Altman shared why he became interested in AI, saying that as a child he was a "sci-fi nerd" who "thought it would be one of the coolest things that humanity could ever build" and could become "one of the most helpful things to help humanity prosper." Rather than abandoning the mission, Altman said he considered it his "duty" to uphold OpenAI's mission, as he simultaneously made the company more attractive for investors so that it could compete with deeper-pocketed rivals like xAI. Appearing to further discredit Musk's motivations in filing the lawsuit, Altman also said that Musk was "extremely sensitive" about his "personal reputation" and "felt like he was not getting enough of the credit for OpenAI." Casting the lawsuit as a bid to control OpenAI from the outside, Altman said that he valued Musk's contributions but that he "absolutely" disagreed that OpenAI's early success could be attributed more to Musk than his own involvement or the work of OpenAI's pioneering teams. Through the litigation, OpenAI has accused Musk of taking too much credit for OpenAI's success. Notably, Musk's expert supposedly dismissed the scientists and programmers who invented ChatGPT as having "contributed zero percent of the nonprofit's current value," OpenAI has alleged. Star-studded witness list Musk and Altman will likely testify for more than two hours each, alongside other top tech leaders likely to be called as witnesses for the trial. Brockman is scheduled to take the stand for 2.5 hours and possibly longer, while co-defendant Microsoft's Satya Nadella is slated for one hour. Sutskever is also on the witness list, where he was given a 30-minute slot, as is Shivon Zilis, one of Musk's associates and the mother of four of his children. Zilis may be a key witness, since Altman foolishly confided in her. During his deposition, Altman called Zilis an "Elon whisperer," while emphasizing that he was not aware of her personal relationship with Musk during the time or else he would not have turned to her for guidance on how to navigate the rocky relationship. The trial could stretch for four weeks, and no witness will receive special treatment, Gonzalez Rogers said in an order requiring that all witnesses use the court's front door to enter the proceedings. That should make for interesting photo ops as Silicon Valley insiders prepare for the trial to reveal more "juicy gossip," NBC News reported. For Musk, the buildup to the trial may be frustrating, as reports do not count his own AI firm among OpenAI's biggest rivals. Instead, Reuters noted that OpenAI "faces unprecedented competition" from Anthropic -- recently valued at $1 trillion -- while reporting that xAI "trails far behind OpenAI in usage." Similarly, NBC News cited Anthropic and Google as OpenAI's biggest rivals. During Musk's deposition, OpenAI's lawyers revealed a likely tactic in fighting against Musk's lawsuit. They asked Musk if he even still considered AGI to be an "existential threat," considering that he operates an AI firm that, unlike OpenAI, no longer aspires to be structured as a "public benefit corporation." "It has a risk," Musk testified, as he seems unwilling to acknowledge any contradiction in his own decision to start a for-profit AI company.

On the stand, Elon Musk can't escape his own tweets | TechCrunch

Elon Musk came to a California federal court on Wednesday to argue that Sam Altman and his cofounders "stole a charity." He left having admitted, under oath, that Tesla is not currently pursuing artificial general intelligence -- directly contradicting a tweet he'd posted just weeks earlier. It was that kind of day for Musk. The lawsuit he filed challenging the structure of OpenAI is alleges Sam Altman and the other cofounders tricked him into backing a non-profit, then launched the frontier lab's for-profit arm and let it come to dominate the organization. After Musk testified for hours on Wednesday in a California federal court, it appears the case may come down to how much of a distinction jurors and Judge Yvonne Gonzalez Rogers make between investors in OpenAI having their potential profit capped or not. In Musk's telling, when he cofounded the lab with Sam Altman, Ilya Sutskever, Greg Brockman and others, he trusted them to build AI for humanity, but over time became suspicious of their motives, and finally concluded that they were "looting the nonprofit." OpenAI's lawyer William Savitt sought to complicate that story during cross-examination, trying to show that Musk had supported a variety of efforts to transition OpenAI toward for-profit status so it could raise the funds necessary to compete with firms like Google, including incorporating the AI lab into Tesla. Musk testified that he had discussed converting the company to a for-profit as early as 2016, and that in 2017, he had explored creating a for-profit arm of OpenAI where he would hold the majority of the equity and control the company. When those plans fell apart, he stopped making regular donations to OpenAI, though he continued to pay for its office space until 2020. Musk insisted that there was a big difference between investors whose profits are capped and those whose profits are unlimited. The earliest major investments by Microsoft in OpenAI limited the software giant's profits, but those restrictions have been rolled back over the years. Musk says those changes ultimately led him to bring this lawsuit. Savitt tried to establish that Musk had been consulted by Altman and Shivon Zillis -- his longtime adviser who is also the mother of four of his children -- about subsequent efforts to raise money, and did not object. Zillis was also a member of the OpenAI board when it approved some of those transactions. That cross-examination extended to Tesla's AI ambitions. Notably, Musk was asked about Tesla's efforts to develop competing AI technologies and found himself, not for the first time, on the wrong side of one of his own posts on X. After Musk said that Tesla's AI work was focused only on self-driving and not artificial general intelligence, or AGI (a term for AI systems that can perform any intellectual task that a human can), he was asked about a recent post claiming that "Tesla will be one of the companies to make AGI." "We are not pursuing AGI right now," Musk told the court. (Tesla shareholders may want to take note.) Musk was also asked about a post where he claimed to have invested $100 million in OpenAI, rather than the $38 million that actually changed hands. He argued that his reputation and network made up for the disparity. Savitt brought up emails where Musk had backed efforts by Tesla and his brain interface company, Neuralink, to poach employees from OpenAI while he was still on that company's board. One conversation focused on Andrej Karpathy, who departed OpenAI to lead self-driving work at Tesla. Another focused on Sutskever, whom Zillis suggested Musk recruit to Tesla. The most consequential thread of the day, though, may have been about safety. Part of Musk's case rests on the idea that OpenAI transition into a traditional corporation is dangerous to society because it reduces the company's focus on safety. Savitt, in turn, had Musk admit that all AI companies, including his own, suffer from this risk. Judge Gonzalez Rogers halted that line of questioning, but in remarks to the lawyers after testimony concluded made clear it would resume, with limits. When Musk's lawyers floated questions about ChatGPT's role in the Tumbler Ridge shooting -- a 2024 incident in Canada in which a man killed his family after extensive conversations with the chatbot -- she made clear that she didn't want to hear about scandals caused by AI models, but that xAI and OpenAI's approaches to safety were fair game. Musk returns Thursday for another round of adversarial questioning. Also expected to testify are his family office manager, Jared Birchall; AI safety expert Stuart Russel; and OpenAI president Greg Brockman.

Elon Musk and Sam Altman are going to court over OpenAI's future

Musk is suing OpenAI, alleging that Altman and OpenAI president Greg Brockman deceived him into bankrolling the company in its early days by promising to maintain it as a nonprofit dedicated to developing AI that benefits humanity, only to later restructure the company to operate a for-profit subsidiary. Musk cofounded OpenAI with Altman and others in 2015, but he left in 2018 after a bitter power struggle. Musk is seeking as much as $134 billion in damages from OpenAI and Microsoft, one of OpenAI's biggest financial backers. He is also asking the court to remove Altman and Brockman from their roles and to restore OpenAI as a nonprofit. Musk has asked the court to award any damages to OpenAI's nonprofit rather than to him personally. Nine jurors will deliver an advisory verdict, a non-binding recommendation, to guide the judge in deciding Musk's claims against Altman. Musk, Altman, and Brockman will take the stand. Former OpenAI chief scientist Ilya Sutskever, former OpenAI CTO Mira Murati, and Microsoft CEO Satya Nadella are also expected to testify. Cringey texts, raw diary entries, and endless scheming behind the founding and growth of OpenAI are expected to come to light. In an industry enveloped in secrecy, the trial will be a rare opportunity for the public to look behind the curtain and find out what's going on in the companies creating the most transformative technology ever built. When OpenAI was originally founded as a nonprofit, backed by a $38 million donation from Musk, the company vowed to create open-source technology for the public's benefit, unconstrained by a need to generate financial returns. But over the years, the company began to claim that intensifying competition could make it dangerous to share how it develops its AI models and that a nonprofit structure could not raise enough money to keep building AI. (MIT Technology Review was first to report on OpenAI's internal conflicts around its mission.) The court has already found that in 2017 Altman and Brockman wanted to establish a for-profit arm, while Musk proposed merging OpenAI with his electric-car company, Tesla. When Musk threatened to stop funding, Altman and Brockman told him that they were committed to keeping the company a nonprofit. Musk alleges that they pursued plans to pivot to a for-profit without informing him. According to OpenAI, Musk agreed that the company needed a for-profit entity and even wanted to be its CEO. But even if Musk proves he was duped by Altman and Brockman, he may not have standing in the first place to sue them for restructuring the company to operate a for-profit subsidiary. Some legal scholars are puzzled over why the judge allowed him to bring this claim. "The idea that Elon Musk can sue because he was a donor or used to be on the board is pretty puzzling," says Jill Horwitz, a law professor who studies nonprofit law at Northwestern University. "Typically, it's up to the attorneys general to bring such a claim to enforce the charitable purposes. And that's already happened." In October 2025, state attorneys general of California, where OpenAI is headquartered, and Delaware, where OpenAI is incorporated, struck a deal with OpenAI to approve its new corporate structure on a series of conditions. For example, a safety and security committee at the nonprofit would review safety-related decisions made by the for-profit subsidiary. Critics of the restructuring, including Musk, AI safety advocates, and civil society groups, have tried to stop it. California's attorney general has declined to join Musk's lawsuit, saying that the office did not see how his action serves the public interest.

Elon Musk Testifies That He Started OpenAI to Prevent a 'Terminator Outcome'

Elon Musk and Sam Altman appeared in a federal courtroom together for the first time on Tuesday as they fight over OpenAI's decade-long evolution and what it means for the company's future. The trial in Musk's lawsuit against Altman could result in financial damages and, more significantly, governance changes at OpenAI that may complicate its plans for an initial public offering as soon as this year. As the first witness on the stand, Musk immediately sought to frame his case as more than just about OpenAI. Siding with Altman "will give license to looting every charity in America" and shake the "entire foundation of charitable giving," Musk told a panel of nine jurors advising US District Judge Yvonne Gonzalez Rogers on how to rule. Musk has been concerned about computers becoming smarter than people "since he was a young man in college," his attorney Steven Molo told jurors. Molo explained that Musk lobbied governments to pass regulations addressing the prospect of so-called artificial general intelligence, including meeting with then-President Barack Obama in 2015. "But the government was not stepping up," Molo said. "Elon felt he had to do something." Around the same time, Musk met with Altman, a then-30-year-old investor "whom he didn't know very well," Molo said. They soon launched OpenAI together as a nonprofit. Google's unchecked progress on AI development had sparked concerns for both OpenAI cofounders, and they wanted to create a competing lab with a greater focus on safety. "My perspective is [OpenAI] exists because Larry Page called me a speciesist for being pro-humanity," Musk said, referring to the Google cofounder. "What would be the opposite of Google? An open-source nonprofit." While Musk believes AI could cure diseases and generate prosperity for humanity, he also told the court that he thinks the technology could veer off into catastrophic scenarios straight out of science fiction. "It could also kill all of us ... the Terminator outcome. I think we want to be in a movie ... like Star Trek, not a James Cameron movie," Musk said. (While Musk has long raised alarms about AI safety, his current firm, xAI, has been criticized by researchers at other AI labs for its "reckless" safety culture.) As OpenAI began notching some of its own successes, Musk and Altman agreed that a for-profit arm with fixed returns for investors was necessary to raise extraordinary sums of money needed to fund hiring and computing, according to Molo. He compared it to a nonprofit museum that receives some proceeds from a for-profit store. "I was not opposed to there being a small for-profit as long as the tail didn't wag the dog," Musk said on the stand. Musk felt that the approach had gone too far when Microsoft, another defendant in the trial, agreed to invest $10 billion in 2023, and OpenAI increasingly moved intellectual property and staff to the for-profit company. "The museum store sold the Picassos so they were locked up where no one could see them," Molo said. William Savitt, an attorney for OpenAI, told jurors that OpenAI never promised Musk that it would remain a nonprofit and publish all its code. "The evidence here will show what Musk says happened did not happen," Savitt said. He added that Musk knew about plans to raise corporate investment exceeding $10 billion as far back as 2018. Musk even raised concerns about Microsoft's involvement in a 2020 tweet. But he didn't file a lawsuit until he founded a competitor, xAI, in 2023.

At his OpenAI trial, Musk relitigates an old friendship | TechCrunch

Among the most interesting parts of Elon Musk's testimony Tuesday in his lawsuit against OpenAI wasn't the charity he claims was stolen from him (we all knew that was coming). It was about an old friend. Musk testified that one of his core motivations for co-founding OpenAI was a falling out with Google's Larry Page over AI safety -- specifically, a conversation in which Musk raised the prospect of AI wiping out humanity and Page shrugged it off as "fine," so long as AI itself survived. Page called Musk a "speciest" for being "pro human." Musk called the attitude "insane." That's mostly notable given how close the two once were. Fortune included them on its 2016 list of secretly best-friend business leaders; Musk was so comfortable with Page that he regularly crashed at his Palo Alto home. Page once told Charlie Rose that he'd rather give his money to Musk than to charity. The friendship didn't survive OpenAI. When Musk recruited Google AI star Ilya Sutskever to help launch the company in 2015, Page felt personally betrayed and cut off contact. It's a story Musk has told before -- including to author Walter Isaacson for his bestselling biography of Musk -- but Tuesday was the first time he said it under oath. Page hasn't commented, and it's worth remembering everything that Musk said was in service of a lawsuit. Still, as recently as 2023 he told tech podcaster Lex Fridman he wanted to patch things up: "We were friends for a very long time."

Some Musk v. Altman Jurors Don't Like Elon Musk

A jury was selected on Monday during the first day of trial for Musk v. Altman in a federal court in Oakland, California. Some of the jurors that were ultimately selected voiced concerns over Musk himself, as well as the AI technology at the core of the case, but assured the court they would put these concerns aside for the trial. The kick off also catalyzed an array of shenanigans outside the courtroom. OpenAI CEO Sam Altman and president Greg Brockman were spotted in the security line inside the courthouse this morning, but Elon Musk was nowhere to be found. A few dozen journalists crammed into an overflow room to listen to an audio stream of the proceedings. The goal today was to select nine jurors who could be fair and impartial in this case -- an especially difficult challenge considering the main characters are some of the most high-profile tech executives in the world. Several potential jurors said they had negative opinions about Musk when questioned by Judge Yvonne Gonzalez Rogers and attorneys. But that didn't necessarily disqualify them; only one juror was ultimately excused on the basis of their strong negative opinions regarding Musk. "The reality is that many people don't like him," Gonzalez Rogers told the courtroom. She added that she believed Americans with negative feelings about Musk could still have integrity for the judicial process and decide the case fairly. The jury will help establish the core facts regarding whether Sam Altman and other defendants improperly steered OpenAI's nonprofit venture away from its original mission, potentially violating the law in the process. But their verdict will be advisory -- Gonzalez Rogers will have the final call. The nine jurors that were ultimately selected represent quite a diverse group, including a painter, a former Lockheed Martin employee, and a psychiatrist. Some of them said they had negative opinions about artificial intelligence technology more broadly. In the end, however, all of the people selected assured the court that their outside opinions about Musk and AI shouldn't interfere with their ability to determine the facts of the case. OpenAI's attorney William Savitt said at a press briefing afterward that he was satisfied with the jury the court settled on. "Mr. Altman, Mr. Brockman, and OpenAI are looking forward to presenting their case to that jury. They're confident in their position and are looking forward to the facts being known," Savitt told reporters. "The hurdle we think we need to get over is just to present the truth here. We've got a story about what happened that is consistent with the facts, it's consistent with the documents, and we just want the jury to see that." Musk is already trying to win his case in the court of public opinion. On Monday morning, the billionaire used his social media platform X to boost a recent New Yorker investigation into Altman's alleged deceptive business conduct. The story is weeks old, and the fact that Musk promoted it on the first day of the trial is no coincidence. Earlier this morning, OpenAI's official newsroom account published a post on X calling Musk's lawsuit an "attempt to undermine our work to ensure that artificial general intelligence benefits all of humanity." Meanwhile, demonstrators were outside the court protesting the AI race altogether and calling for a pause on further development. On Tuesday, lawyers for OpenAI and Elon Musk will deliver opening statements, and the first witness in the case will be called to the stand.

Elon Musk tells the jury that all he wants to do is save humanity

On the stand, Elon Musk is positioning himself as a savior. In the high-profile trial between him and his fellow OpenAI co-founder, now CEO, Sam Altman, Musk opened by going through his background. He went as far back as being raised in South Africa and arriving in Canada for college with "2,500 in Canadian travelers' checks and a bag of clothes and books," then spent an unusually long time talking about his past, from Zip2 to PayPal to the current, more familiar slate of companies he now runs. Why is Musk giving the jury so much of his origin story? Though he may be, depending on the day, the world's wealthiest individual, Musk suggested that all of his business ventures were concerned with the well-being of humanity. Rocket company SpaceX was founded as "Life insurance for life as we know it"; electric-car manufacturer Tesla was started because he thought continued reliance on fossil fuels "could be pretty bad for the environment and humanity as a whole." (On the stand, he dubiously claimed that he founded Tesla.) He said that he has been worried about AI in his college years, that it could be a "double-edged sword," one that could "solve all the diseases and make everyone prosperous, or it could kill us all." He suggested that AI had two outcomes: the utopian Star Trek one, or the dystopian Terminator one. He wants the future to be more like Gene Roddenberry's and not like James Cameron's. This was his intention in co-founding OpenAI. Musk cast himself as a hero -- the good guy who cares about humanity, suggesting that Altman is the opposite. It could prove to be an effective strategy, especially when contrasted with Altman, whose background co-founding the long-forgotten social media app Loopt and his days as a partner at Y Combinator, might sound far less magnanimous. Musk went as far as claiming that Altman was a thief. "It's very simple: it's not okay to steal a charity. That's my view and moreover if the defendants are found not guilty, this case will become caselaw. It will become precedent and give precedent to looting every charity in America," Musk said. "If the verdict comes out that makes it okay to loot a charity, the entire foundation of charitable giving in America will be destroyed." On the topic of charitable giving, Musk did not tell the jury that most of his foundation's philanthropic donations have gone to interests closely or directly tied to his own.

Elon Musk vs Sam Altman: how the legal battle of the tech billionaires could shape the future of AI

There was a time when Elon Musk and Sam Altman were friends. But the two tech billionaires are now embroiled in a bitter legal battle in the United States that could reshape not just OpenAI, the artificial intelligence (AI) firm behind ChatGPT they cofounded in 2015, but also the future of the technology more broadly. Launched by Musk in 2024, the lawsuit is the culmination of a years-long feud that centres on the evolution of OpenAI from a non-profit to a for-profit enterprise. The trial, which kicked off this week in California, is expected to last roughly three weeks. But its ripple effects could be felt for many years to come. The case and the cast The lawsuit pits Musk against Altman, OpenAI president Greg Brockman, OpenAI itself, and Microsoft, the AI firm's largest backer. Musk cofounded and helped fund OpenAI to the tune of about US$44 million. By his own account from the witness stand this week, he "came up with the idea, the name, recruited the key people, taught them everything I know, provided all of the initial funding". Brockman served as technical cofounder; Altman became chief executive in 2019. Their alliance with Musk fractured as the organisation grew. Musk departed the board in 2018. He says he was pushed out. However, OpenAI says he walked when denied majority control. Musk subsequently launched his own rival AI venture, xAI, which is now part of SpaceX. What Musk is alleging As part of the lawsuit, Musk is alleging breach of contract, breach of fiduciary duty, false advertising and unfair business practices. His core claim is that Altman and Brockman induced him to donate on the understanding that any artificial general intelligence - or AGI - built at OpenAI would stay "open" and shared with humanity. Instead, Musk argues, the founders turned the charity into a "wealth machine". They did this in two stages. First, via a 2019 capped-profit subsidiary. Here, OpenAI's for-profit unit limited the returns, with the excess handed back to the nonprofit. Second, through a full restructure into a public benefit corporation, which is now valued at roughly US$852 billion. Musk's lawyers told jurors Altman and Brockman "stole a charity, full stop". Outside court, Musk has been throwing insults at his opponents, prompting the judge to threaten a gag order. OpenAI flatly rejects Musk's narrative. As its lead counsel, William Savitt, told jurors: We are here because Mr Musk didn't get his way with OpenAI. The company alleges, as described in two pre-trial blog posts, that Musk himself proposed merging OpenAI with Tesla in 2017 and walked away when denied majority control. The lawsuit, OpenAI says, is "motivated by jealousy" and designed to damage a competitor. A company under pressure The trial arrives at a precarious moment for OpenAI. The New Yorker magazine recently published an investigation describing Altman as a "pathological liar". The investigation drew on an internal dossier compiled by OpenAI's former chief scientist Ilya Sutskever which alleged a "consistent pattern of lying" to the company's board. Altman called the piece "incendiary" but acknowledged "a bunch of mistakes". Musk has been amplifying the article to his X followers throughout the trial. Financially, OpenAI is bleeding. Internal projections point to roughly US$14 billion in losses for 2026 alone, with cumulative losses expected to top US$44 billion before any profit materialises. Shortly before the trial began, OpenAI quietly shut down Sora, its flagship video-generation model. Before closing, it burned around US$1 million a day in computing costs. The closure took down a US$1 billion Disney partnership with it. Even a fresh US$122 billion fundraise from Amazon, Nvidia and SoftBank has not eased the pressure. What Musk wants Musk wants the jury to unwind OpenAI's for-profit conversion, remove Altman from the nonprofit board, and strip both Altman and Brockman of their roles in the for-profit entity. He is also demanding US$130 billion in damages from OpenAI - for what his team calls "ill-gotten gains". He has accused Microsoft of "aiding and abetting" and argues it is liable for a share. His legal team argues OpenAI's existing models already constitute AGI, because they have surpassed human intelligence in many tasks. Under the founding agreement, AGI could not be commercially licensed. This would include the licence currently used by Microsoft for CoPilot. What's at stake If Musk wins, the consequences would be significant. OpenAI's planned initial public offering would almost certainly be derailed. This is expected in late 2026 at a US$1 trillion valuation. Investors in the recent funding round could face clawbacks. Altman, the public face of the AI boom, could be removed from the company he has led since 2019. The broader question of whether AI labs founded as charities can lawfully pivot into commercial enterprises would be settled, at least in California. This has potential implications for Anthropic and other mission-driven peers. Even a defeat for Musk would not end the controversy. The trial has already pried open Silicon Valley's normally sealed boardrooms, surfacing diaries, Slack threads and HR memos that paint an unflattering portrait of OpenAI's governance. The case crystallises a wider public anxiety: an incredibly powerful technology is being built and controlled by a tiny number of feuding tech bros. And it's the rest of us who have to live with the consequences.

Musk Recounts Losing Trust in Motives of OpenAI's Other Leaders

Elon Musk spent hours Wednesday telling a jury about his falling out with the other leaders of OpenAI over what he described as their desire to "get rich" off a project that was supposed to serve the public good. In his second day of testimony during a closely watched trial against OpenAI, the serial entrepreneur detailed his increasingly volatile relationship with fellow co-founders Sam Altman and Greg Brockman beginning in 2017, when he said he became skeptical of their motives. "It is okay to have a for-profit that is helping the nonprofit, but it can't become the main thing. It can't far exceed the nonprofit," Musk said on the witness stand in federal court in Oakland, California. "That's really what's at issue here." Musk has alleged that Altman and other leaders at OpenAI enriched themselves by abandoning its altruistic principles and converting to a for-profit company with billions of dollars in support from Microsoft Corp. OpenAI and Altman have accused Musk of harassment and say the real goal of the lawsuit is to undercut competition with his own startup that he co-founded in 2023, xAI. The stakes in the trial are high -- maybe even existential -- for OpenAI because of what Musk is seeking: As much as $134 billion in damages, removal of Altman as CEO and Brockman as president, as well as an unwinding of OpenAI's for-profit conversion that was completed in October. Under questioning from his attorney, Musk reviewed a document showing a 2017 proposal for the billionaire to have majority control over a new for-profit entity, if it were created. He acknowledged that was under consideration but stressed such an arrangement would have been temporary. "If I'm providing almost all the money here and it's a for-profit, it seems like initial control would make sense," he said. But as more investors rolled in, he said, that "would mean I did not have control over time." In his own statement Tuesday to the jury in federal court in Oakland, California, OpenAI attorney William Savitt argued that Musk "wanted to turn OpenAI into a full-on for-profit company and take absolute control of it." But, Savitt said, "the other founders refused to turn the keys of artificial intelligence over to one person." 'Final Straw' Musk told jurors Wednesday the "final straw" in his falling out with OpenAI's other leaders -- Altman, Greg Brockman and Ilya Sutskever -- came in 2017 when they seemed to turn on him. Musk read aloud an excerpt in an email from Sutskever: "You've shown to us that absolute control is extremely important to you." Musk testified that he felt the co-founders "were frankly not being entirely honest with me" after there had initially been a consensus on how to structure the startup. "They had gone back on what they had agreed on previously," he said. "I felt this was somewhat disingenuous and what they really wanted to do was create a for profit where they had as much shareholder ownership as possible." Nonprofit Status Musk rejected the idea that he wanted to wield total control of OpenAI indefinitely and said he remained committed in its early years to maintaining the company's status as a nonprofit research outfit. He characterized the discussions in 2017 about creating a possible for-profit entity for the AI startup as mere "brainstorming." Musk also acknowledged that he directed one of his representative to filed paperwork to create a for-profit entity known as a B-Corp, "but it turned out not to be" needed. The world's richest person ended up leaving OpenAI's board in 2018, after he had contributed $38 million to the startup. Microsoft invested its first billion dollars in OpenAI the next year, followed by $12 billion more. 'Having Your Cake' Musk's attorney, Steven Molo, asked him why xAI was created as a for-profit. "You can go either way, create something as a nonprofit or a for-profit," he said. "You just can't create something as a nonprofit and turn it into a for profit. That's having your cake and eating it too." Musk first sued OpenAI in February 2024 in California state court. He later dropped that case and pursued a new complaint in federal court and added Microsoft as a defendant. Musk pushed back on what will be one of OpenAI's key trial arguments: that his lawsuit was filed after the three-year statute of limitations. He said despite his concerns about Altman and Brockman in 2018 and 2022, he didn't believe at the those times that they would proceed with "stealing" the charity. "Thinking that someone might steal your car is not the same as someone who has stolen your car," Musk testified. "I would have filed a lawsuit sooner if I had thought they had stolen a charity sooner." Cross Examination Musk grew irritable and defensive under cross examination from Savitt, frequently saying that he couldn't provide simple yes or no answers because Savitt was attempting to mislead the jury. US District Judge Yvonne Gonzalez Rogers intervened during the questioning a handful of times and asked Musk to refrain from providing long-winded answers. "Your questions are not simple," Musk told Savitt. "They're designed to trick me, essentially." "The classic reason why you cannot always answer a yes or no question: If you ask a question 'have you stopped beating your wife?'" Musk said. Gonzalez Rogers interjected, and told Musk: "We're not going to go there," drawing laughter from in the courtroom.

Elon Musk to return to witness stand for cross-examination by OpenAI's lawyer

OAKLAND, California, April 30 (Reuters) - Elon Musk is due to return to the witness stand on Thursday for a second day of cross-examination by Sam Altman's lawyer, in a high-stakes trial over a lawsuit Musk brought accusing OpenAI of abandoning its mission to develop artificial intelligence for the benefit of humanity. The world's richest man alleges that OpenAI, its co-founder and CEO Sam Altman, and its President Greg Brockman wooed his $38 million in donations by promising to build a nonprofit that would prioritize ⁠safe development of AI, before pivoting to create a for-profit entity to enrich themselves. OpenAI has countered that Musk, the CEO of Tesla (TSLA.O), opens new tab and SpaceX, is driven by a compulsion to control OpenAI and is bitter about the company's success after he left the board in 2018. They have also said he did not prioritize safety issues when he was with the company, and that he is trying to bolster his own AI company, SpaceX unit xAI, which lags OpenAI in user adoption. In tense exchanges on Tuesday, William Savitt, a lawyer for OpenAI, Altman and Brockman, pressed Musk about text messages and emails showing that he at times expressed ⁠openness to creating a for-profit entity and that Altman kept him apprised about Microsoft's (MSFT.O), opens new tab investments in OpenAI. Earlier on Wednesday, jurors in federal court in Oakland, California, saw an email Musk sent to Altman and Brockman in 2017, referring to himself as a "fool" for providing them funding for what he believed was a nonprofit venture. "I felt like they ⁠had not been honest with me," Musk said under questioning by his lawyer, Steven Molo. "What they really wanted to do was create a for-profit where they had as much shareholder ownership as possible." OpenAI has said it created a for-profit entity ⁠to allow it to accept private investments to help buy computing power and pay top scientists. Savitt is expected to cross-examine Musk for about an hour on Thursday, and a lawyer for Microsoft will also ⁠question him. The trial started on Monday and is expected to last several weeks. The next witnesses after Musk are expected to be his top aide, Jared Birchall, Brockman, and AI safety expert Stuart Russell. Reporting by Deepa Seetharaman and Kenrick Cai in Oakland, California Writing by Luc Cohen Editing by Rod Nickel Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence * Corporate Activism Kenrick Cai Thomson Reuters Kenrick Cai is a correspondent for Reuters based in San Francisco. He covers Google, its parent company Alphabet and artificial intelligence. Cai joined Reuters in 2024. He previously worked at Forbes magazine, where he was a staff writer covering venture capital and startups. He received a Best in Business award from the Society for Advancing Business Editing and Writing in 2023. He is a graduate of Duke University.

Elon Musk says he was 'a fool' to fund the launch of OpenAI

Elon Musk told a jury on Wednesday that he was "a fool" to provide initial funding for OpenAI, claiming he believed the $850bn ChatGPT maker would remain a non-profit organisation. The billionaire was testifying in federal court in Oakland, California, as the first witness in his lawsuit against Sam Altman, OpenAI and its largest shareholder, Microsoft. "I actually was a fool who [gave] free funding for them to create a start-up," Musk said. "I gave them $38mn of essentially free funding, which they used to create a . . . for-profit company." Musk brought the case claiming he was deceived by a "bait and switch" after OpenAI was created as a non-profit with the billionaire's support and then launched a for-profit entity, which has since become one of the most valuable start-ups in the world. His attorneys on Wednesday showed the jury emails between Musk, OpenAI's chief executive Altman and president Greg Brockman, who were both in court. The messages from 2017 included early discussions about creating a for-profit, and a proposed ownership breakdown under which Musk would have owned slightly more than half of the company. After opposition from OpenAI employees, Musk ended the conversation. "Guys I've had enough . . . Either go do something on your own or continue with OpenAI as a non-profit," he wrote in September 2017, adding that it was not an "ultimatum" and the proposed structure was "off the table". Altman replied: "I remain enthusiastic about the non-profit structure!" Musk said in his testimony that he meant that OpenAI's founders could not "have their cake and eat it too". They could not have "the positive halo effect of being a non-profit charity and enrich themselves", he added. After Musk resigned from the board in 2018, OpenAI received a $1bn investment from Microsoft in 2019, with a capped-profit arrangement. Musk said "there was no basis for me to file a lawsuit at that time because they hadn't violated the non-profit" principles. OpenAI has claimed Musk waited too long to bring his case, exhausting the statute of limitations on his claims. The jury then saw text messages between Musk and Altman where Musk said he was "disturbed to see OpenAI with a $20bn valuation" in late 2022. Microsoft's investment was formally announced in January 2023. Altman justified the Microsoft investment, saying there was "no way" to compete "without many billions of dollars". "A non-profit doesn't have a valuation," Musk told the court. "OpenAI had become for all intents and purposes a for-profit company with a $20bn valuation." OpenAI and Microsoft will also get the opportunity to grill Musk on Wednesday. Microsoft is accused of "aiding and abetting" by encouraging OpenAI to prioritise profit and products over its charitable mission. Musk also referred to a provision in the Microsoft and OpenAI agreement that the for-profit would be dissolved if artificial general intelligence -- AI that is akin to or surpasses human intelligence -- were achieved. This clause was scrapped in an amendment to their partnership agreement on Monday. "With all respect to Microsoft, do you really want Microsoft controlling digital superintelligence?" Musk asked the jury.

Elon Musk takes the stand in high-profile trial against OpenAI

Elon Musk officially began his testimony in the trial he has brought against OpenAI CEO Sam Altman and company president Greg Brockman. The three were on the initial founding team of OpenAI, with Musk investing up to $38 million early on before the co-founders' relationship soured over disagreements over company structure and mission, including whether or not OpenAI should be folded into Musk-owned Tesla. Musk walked away and, years later, founded xAI -- his own direct competitor to OpenAI, which is now owned by Musk's SpaceX. In recent years, Musk has filed no less than four different lawsuits against OpenAI, many of which have since been dropped or dismissed. This one, though, names Altman, Brockman, Microsoft, and OpenAI itself as plaintiffs, and it has made it to jury trial in a California federal courtroom. It's expected to draw testimony from AI industry leaders, including Microsoft CEO Satya Nadella, Microsoft CTO Kevin Scott, and former OpenAI CTO Mira Murati (who is now the founder of her own AI company, Thinking Machines Lab). The crux of the suit alleges that OpenAI violated its core mission to build AGI, or artificial general intelligence, that benefits all of humanity, and it also makes allegations of potential fraud, unjust enrichment, and breach of OpenAI's charitable trust. Musk is calling for the court "to strip Sam Altman and Greg Brockman of their positions of authority and the personal financial benefits they extracted from OpenAI's illicit for-profit operations and conversion" and to unwind OpenAI's for-profit restructuring, among other things.

OpenAI trial live updates: Musk takes the stand again after heated cross-examination

Elon Musk will conclude his testimony on Thursday as the trial in his lawsuit against OpenAI CEO Sam Altman rolls into its fourth day. OpenAI's attorney, William Savitt, cross-examined Musk for several hours on Wednesday, and the two men clashed repeatedly. Musk accused Savitt of lying and asking misleading questions that were "designed to trick" him. His cross-examination is expected to last for another hour on Thursday. Musk sued OpenAI, Altman, and Greg Brockman, the company's president, in 2024, alleging that they went back on their commitments to keep the artificial intelligence company a nonprofit and to follow its charitable mission. He claims that the roughly $38 million he donated to seed OpenAI, a company he co-founded, was used for unauthorized commercial purposes. Once Musk is done testifying on Thursday, his attorneys will call Jared Birchall, who manages Musk's billions at his family office, as their next witness. Brockman and Stuart Russell, a computer science professor at the University of California, Berkeley, could also be called to the stand. Judge Yvonne Gonzalez Rogers is overseeing the proceedings from federal court in Oakland, California

Musk and Altman show up for opening statements in trial that could reshape AI's future

OAKLAND, Calif. (AP) -- OpenAI co-founders Elon Musk and Sam Altman have shown up for Tuesday's opening statements in a high-stakes trial revolving around a bitter feud between the former friends that could reshape the future development of artificial intelligence. The bickering billionaires' early-morning appearances at the Oakland, California, federal courthouse foreshadow the start of a legal drama that is expected to brim with intrigue and potentially embarrassing details about the two tech moguls. The jury was elected Monday and the trial is scheduled to take three weeks. After the lawyers provide an overview of their respective cases, testimony will begin presenting Musk's side of a tale chock full of alleged betrayal, deceit and ambition that caused OpenAI to pivot from its founding mission as an altruistic startup to a capitalistic venture now valued at $852 billion. Musk, the world's richest person with an estimated fortune of $778 billion, is among the witnesses who will testify during the trial. His presence on Tuesday may mean that he will be among the first people to take the witness stand. Altman, OpenAI's CEO, is also expected to testify at the trial, along with Microsoft CEO Satya Nadella, one of the technology leaders who helped fund the late 2022 release of ChatGPT, the chatbot that unleashed the current AI boom that has propelled the stock market to record heights.

What you need to know as Elon Musk's lawsuit against Sam Altman begins

In a few short days, jury selection will begin in the long-awaited Musk v. Altman case. At the end of that process, an Oakland federal court will task nine regular people with deciding if OpenAI defrauded Elon Musk when it announced, and recently completed, its reorganization to become a more traditional for-profit business. More than just being the venue where two billionaires will air their grievances against one another in public, the trial has the potential to reshape the AI industry. Musk first sued OpenAI in 2024, but the seed of the dispute was planted when Sam Altman emailed the billionaire on the evening of May 25, 2015. "Been thinking a lot about whether it's possible to stop humanity from developing AI. I think the answer is most definitely not," Altman wrote at the time. "If it's going to happen anyway, it seems like it would be good for someone other than Google to do it first. Any thoughts on whether it would be good for [Y Combinator] to start a Manhattan Project for AI?" "Probably worth a conversation," Musk responded a couple of hours later. That same year, OpenAI announced itself to the world, with Altman and Musk as co-chairs of the new joint venture. "OpenAI is a nonprofit artificial intelligence research company. Our goal is to advance digital intelligence in the way that is mostly likely to benefit humanity as a whole, unconstrained by a need to generate financial return. Since our research is free from financial obligations, we can better focus on a positive human impact." If we're to believe OpenAI's telling of the events that followed, by 2017, almost everyone at the company, including Musk, agreed that a for-profit entity "had to be part of the next phase for OpenAI," due to the enormous amount of investment needed to pursue its original mission. At some point before Musk left OpenAI's board of directors in February 2018, OpenAI claims he demanded full control of the company, with the intent to eventually merge it with Tesla. Following Musk's departure, OpenAI created its for-profit arm in 2019, which at the time was organized under a "capped-profit" structure designed to limit investor returns to 100x, with any excess windfalls flowing to the company's nonprofit. The idea being that if OpenAI achieved artificial general intelligence, its nonprofit would be the greatest beneficiary. However, after the success of ChatGPT in 2022, that structure became problematic for OpenAI as the company sought to raise ever more capital, and as part of its $6.6 billion funding round in October 2024, it reportedly agreed to a less-than-two-year deadline to free its for-profit from control of the nonprofit. "At the heart of this trial is that OpenAI began as a non-profit organization, and then decided that it needed to be a for-profit organization in order to raise the enormous sums of money it needed to develop the technology it wanted to create," explains Professor Michael Dorff, executive director of the Lowell Milken Institute for Business Law and Policy at UCLA. "That is a very troublesome transition under the law." Earlier this year, following protracted negotiations with Microsoft (the for-profit's largest investor) and the state attorneys general of California and Delaware, OpenAI announced the successful reorganization of its corporate structure. As things stand, the for-profit is now a public benefit corporation, making it more appealing to investors looking for an uncomplicated return structure. Meanwhile, the nonprofit -- now known as the OpenAI Foundation -- holds equity in the for-profit arm, a stake valued at $130 billion at the time the agreement was announced. At the end of last year, Musk filed an injunction to prevent the reorganization from going through but failed. As an early donor to OpenAI, Musk will not see a single cent of money come his way when the company holds an initial public offering, on account of the fact donations are made with no expectation of any return. Musk has therefore argued OpenAI's founding group, including CEO Sam Altman and President Greg Brockman, defrauded him as a donor. Determining the exact amount Musk contributed to OpenAI was an early question during pre-trial discovery. You see, Musk has greatly exaggerated his monetary contributions. As recently as March 2023, the billionaire regularly claimed he had donated about $100 million to OpenAI. He later cut that estimate by half, telling CNBC in May 2023: "I'm not sure the exact number but it's some number on the order of $50 million." In recent court filings, that number was again revisited to $38 million, and it's the number that currently stands. In his original complaint, Musk's legal team tried to "throw the kitchen sink" at OpenAI, says Professor Dorff. In subsequent filings, Musk's lawyers narrowed down their client's desired set of outcomes to a handful of remedies. Should the jury rule in his favor, Musk has requested the court force Altman and Brockman to step down, and for OpenAI to restructure as "a bona fide public charity that operates as the nonprofit it was intended to be, consistent with its founding charter and mission." He's also made the highly unusual request that any monetary damages which would be awarded to him in the verdict be redirected to OpenAI's own nonprofit arm. According to Professor Dorff, it's highly unlikely Musk will be able to undo OpenAI's reorganization. For one, District Judge Yvonne Gonzalez Rogers has already signaled her reluctance to do just that -- and it's her, not the jury, who will get to decide if that's an appropriate remedy. Effectively, Musk is asking the judge to "unscramble the eggs" of a complicated corporate restructuring. "There was a moment where that might have been possible, when the attorneys general of Delaware and California intervened and came to the current compromise," explains Dorff. "Whether you agree or disagree with what the AGs decided to do, I think it's unlikely the court will feel it's appropriate to undo that compromise because of all the high government officials involved who, in theory, had all of the right incentives." When Musk filed his request for a preliminary injunction to stop OpenAI's conversion to a for-profit company, the judge said the request was "extraordinary and rarely granted." The fact Musk is deeply involved with OpenAI's competitor xAI "may also weigh heavily on the judge's mind," Droff adds. Far more uncertain is how Musk's other demands could play out, since the jury will decide if OpenAI is guilty of defrauding him. According to Dorff, most high-stakes business cases end with the two sides settling because of the risk of involving a jury in the outcome. "I just don't see that happening here given the tenor of the dispute," he says. "It seems unlikely either side will settle." If the case does end in a jury decision, it will then be up to those nine people, with guidance from the judge, to decide on monetary damages. "That will be very difficult to figure out because there is a maximalist version of this, and a minimalist version of this. They're very different numbers and the result could be anywhere in between two," says Dorff. Musk's legal team is seeking a disgorgement of between $65.5 billion and $109.43 billion from OpenAI (and between $13.3 billion and $25.06 billion from Microsoft, which is a co-defendant in the case). In a worse case scenario, Professor Dorff suggests Altman might lose the confidence of OpenAI's board, costing him his position as CEO. He might even be forced to write some checks to settle the disgorgements. Dorff suspects OpenAI "would love" the minimalist version where Musk is rewarded his $38 million donation back (and it ends up with the company's non-profit). Should some other disgruntled donors emerge to sue OpenAI for fraud, the Musk v. Altman case would make it easier to litigate those cases, given "the map has been drawn as to which legal claims are likely to succeed," says Dorff. However, those would amount to "traffic tickets" for OpenAI. Whatever happens next, it should be an eventful trial. With public testimonies from Microsoft CEO Satya Nadella, former OpenAI board member and Musk confidant Shivon Zilis and even Altman himself a likelihood, we'll at the very least be treated to a wealth of formerly private communications -- and some new piece of vocabulary -- between some of the richest people in the tech space.

Inside the Courtroom at the OpenAI Trial

Reporting from the Ronald V. Dellums U.S. Courthouse in Oakland, Calif. Covering this trial begins at about 6 a.m., sometimes earlier, with a trip to the federal courthouse in downtown Oakland, Calif. Because the Silicon Valley moguls Elon Musk and Sam Altman often appear in court, people line up outside the building before the sun comes up. On Tuesday, a group of young artificial intelligence safety researchers arrived in the early morning with Subway sandwiches. They are among those who believe that Mr. Musk's lawsuit could shift the direction of the global A.I. race. Mr. Musk is claiming that OpenAI, which he founded with Mr. Altman and others in 2015, violated the original mission of the A.I. lab by putting commercial interests over the good of humanity. I'm covering the trial with my colleague Mike Isaac, but the court gave The New York Times only one press pass. I take it one day; he gets it the next. Even with the pass, I have to show up at least an hour before the 8 a.m. start time. The idea is that if you have a pass, you can skip the line. But for this blockbuster trial, even the express entrance to the courthouse is painfully slow. It gets clogged with all the lawyers hired by Mr. Musk and the two companies he's suing: OpenAI and Microsoft, the lab's chief financial and technological partner. (The New York Times sued OpenAI and Microsoft in 2023 for copyright infringement of news content related to A.I. systems. The two companies have denied those claims.) For security reasons, Mr. Musk and Mr. Altman enter from the basement. But they still have to walk through the metal detectors just inside the building's front doors. When they arrive, the many photographers standing outside the building suddenly rush toward those doors, trying to snap pictures of the tech moguls through the glass. (Photography is not allowed inside the federal courthouse.) Once we enter the courtroom, Mike and I sit on wooden benches in the gallery alongside about 40 other reporters from various outlets. One of the perks of covering a trial near Silicon Valley is that we can use laptops and phones inside the courtroom. In places like Washington, D.C., courts often ban the use of electronic devices. That means we can type out our stories and blog posts and send them to editors right away. But we're still forbidden from taking photos, and we're not allowed to record audio or video. For two days running, Judge Yvonne Gonzalez Rogers, who is presiding over the trial, admonished people for recording court proceedings and snapping pictures from the overflow room, which holds dozens of people who did not get a spot in the courtroom. If they continued, she said, she would confiscate their devices and shutdown the overflow room. The figure that most eyes focus on is Mr. Musk, the world's richest person. We all recognize him from photos, but his mannerisms are quirkier than you might think. He often purses his lips, which you can see in one of the photos captured by Jason Henry, the freelance photographer hired by The Times to stand outside the courthouse. And as Mr. Musk marched out of the courtroom on Tuesday afternoon, he was clutching what appeared to be a small, soft ball, squeezing it over and over again. Mr. Altman is less conspicuous. This week, a fellow reporter who had never seen him in person made a point of saying he was much shorter than she had thought. On Monday, before jury selection, Mr. Altman approached me and said, "I hope you enjoy this." Later, someone who seemed to be one of Mr. Musk's lawyers replied to another Times reporter who had posted that quote on social media, saying, "What can we do about that?" When Mr. Musk took the stand on Tuesday and Wednesday, Mike and I got a pretty good taste of the two very different sides of his personality -- though our view was often blocked by lawyers and giant computer displays used to show court evidence. When Mr. Musk was questioned by his own lawyer, he calmly explained that he and his many tech companies were on a mission to save the world. Under cross-examination, he grew combative, occasionally raising his voice and tossing sly insults at OpenAI's lead counsel. Mr. Musk left OpenAI less than three years after he founded the lab with Mr. Altman. Now, they don't exactly like each other. On social media, Mr. Musk recently called his old co-founder "Scam Altman." When Mr. Musk arrived in court for the first time on Tuesday, the judge lit into him for posting about the trial on X, the social media platform he owns. He said he was just responding to things that OpenAI had posted online. So the judge told both Mr. Musk and Mr. Altman to start with a "clean slate" and to "keep things to a minimum" on social media. They agreed. We'll see if that sticks.

Musk takes the stand in court battle against OpenAI and Altman

In his second day on the stand, Elon Musk was at times combative under questioning by OpenAI's lawyer, whom he accused of asking overly complicated questions. "Your questions are not simple," he told lawyer William Savitt at one point. "They're designed to trick me essentially," Musk is suing fellow OpenAI co-founder Altman and the AI firm, alleging they misled him by shifting the organisation away from its non-profit roots toward a for-profit model. OpenAI says Musk is motivated by jealousy and regret for walking away from the company in 2018. It has also accused Musk, head of xAI, of trying to derail one of his key rivals. In the courtroom, Musk, wearing a dark suit and tie, started his testimony as Altman and OpenAI co-founder and president Greg Brockman, who is also being sued, looked on in the front. Musk acknowledged that he had intended to have initial control over OpenAI but added he expected to have that control change quickly as more investors got involved. The tech billionaire said he wanted to ensure the company was headed in the right direction early on because he was providing almost all the capital for it. Noting that he has created many for-profit companies, Musk said, "I could have done that with OpenAI, but I chose not to. I chose something that was for the public benefit." "I deliberately chose to create this as a non-profit for the public good." Musk is asking for billions of dollars in what his lawyers call "wrongful gains" that he wants used to fund OpenAI's non-profit arm, and he wants to see a shake-up at the company including the ousting of Altman. OpenAI has said Musk is using the lawsuit to derail one of his key competitors in the AI race, despite trying to portray himself as a paragon of safety and regulation. In court, Savitt tried to poke holes in Musk's argument that he wanted OpenAI to remain a non-profit due to his concerns about Artificial General Intelligence - the kind of AI that surpasses human intelligence - falling into the wrong hands. A year after OpenAI released the wildly successful ChatGPT, Musk launched a competing AI startup, xAI. Savitt highlighted Musk's decision to launch xAI, the maker of the chatbot Grok, as a for-profit company. The case, which could have far-reaching implications for the industry, is expected to last several weeks. The head of Tesla and SpaceX is asking for billions of dollars in what his lawyers call "wrongful gains" which he wants to use to fund OpenAI's non-profit arm, and to see a shake-up at the company - including the ousting of Altman. Musk's claims include breach of charitable trust and unjust enrichment. The case stems from a lawsuit filed by Musk in 2024, accusing Altman, Brockman, and Microsoft, which has invested tens of billions of dollars into OpenAI, of betraying the company's original non-profit mission. Musk has criticised OpenAI's move to create a commercial arm, created in 2019, years before launching ChatGPT and igniting the AI market. The billionaire's own platform, xAI, has lagged behind competitors. The company launched in 2023, one year after ChatGPT hit the market. OpenAI has argued that Musk understood the decision to open a commercial arm, and that he left the company only after failing to become its chief executive. Musk donated $38m to the OpenAI non-profit, which the firm has maintained was "spent exactly as intended and in service of the mission". On Tuesday in his opening statement, Musk outlined what he felt the lawsuit was about to one of his lawyers as he took the stand. "It's actually very simple," he said. "It's not okay to steal a charity... If it's okay to loot a charity, the entire foundation of charitable giving will be destroyed." Savitt, an OpenAI lawyer, said the lawsuit was motivated by Musk seeking to kneecap a "competitor". He said that Musk had used his investment to "bully" other OpenAI founders, and that he had wanted to merge the company with Tesla, which he also owns. "We're here because Mr Musk didn't get his way at OpenAI," said Savitt. "Because he's a competitor, Mr Musk will do anything to attack OpenAI." Altman is also expected to testify during the trial. Sign up for our Tech Decoded newsletter to follow the world's top tech stories and trends. Outside the UK? Sign up here.

Musk vs. OpenAI trial begins with internal emails, AGI governance, and billions in potential damages at stake

Serving tech enthusiasts for over 25 years. TechSpot means tech analysis and advice you can trust. Winners & losers: The trial over Elon Musk's claims that OpenAI "looted a charity" is also a dispute over who controls the future of advanced AI and how it is funded. At stake is whether frontier systems like GPT-4 and its successors are developed under nonprofit-style constraints or driven primarily by commercial incentives. A federal judge will ultimately decide which interpretation best aligns with OpenAI's founding documents and internal records. Jury selection in the case began this week in US District Court in Northern California. Judge Yvonne Gonzalez Rogers will ultimately decide whether OpenAI's shift to a capped-profit structure - and its close partnership with Microsoft - breached a charitable trust that Elon Musk says arose from roughly $38 million he donated to the lab's early work. Jurors will weigh liability and, if it reaches that stage, damages, but their role is advisory; the judge will have the final say in both phases of the trial. The core dispute turns on how OpenAI's founders intended to balance open research against the enormous compute, data, and engineering demands of building artificial general intelligence. In early 2015 emails, Musk and OpenAI CEO Sam Altman discussed a structure "so that the tech belongs to the world via some sort of nonprofit, but the people working on it get startup-like compensation if it works." They were already trying to reconcile public-benefit governance with the need to recruit scarce AI talent and fund GPU-intensive research. Later exchanges show Musk reminding Altman that he would not "fund something that goes in what turns out to be the wrong direction," while Altman described Musk as the "main inspiration" behind the governance discussions that shaped the organization's original structure. Those early plans later gave way to a power struggle as the technical agenda and the potential impact of artificial general intelligence came into sharper focus. By early 2016, Elon Musk was meeting weekly with OpenAI's leadership to discuss "OpenAI's long-term success" and agreed to increase his donations as the team ramped up research, eventually gifting Teslas to co-founders in recognition of "what they had done to get OpenAI to where it is today." Within a year, however, co-founders Greg Brockman and Ilya Sutskever were warning in internal emails that the proposed structure would give Musk "unilateral absolute control over the AGI," and that once the company was on track toward AGI, "the company will be much more important than any individual." They also questioned Altman's insistence on the CEO title, asking whether AGI was truly his "primary motivation" and how it aligned with his broader ambitions. Those documents, including a 2017 diary entry in which Brockman wrote, "This is the only chance we have to get out from Elon," are expected to feature heavily at trial. Musk's lawyers argue that his contributions created a binding obligation to keep OpenAI nonprofit and open, and that the 2019 creation of a for-profit entity - now valued at about $852 billion after a recent funding round - violated that commitment and could pave the way for a future IPO. OpenAI counters that Musk's funding was a standard charitable donation, not an investment, and that its capped-profit structure is the only realistic way to finance the infrastructure required to compete with rivals such as Anthropic and Google. The technical safety narrative runs through both sides' testimony. Musk told lawyers that he avoided launching an AI company until 2023 because he feared the "double-edged sword of AI would do more harm or more good." He said his early view that "the danger of an apocalypse was too great" later proved "naïve" once he concluded that others would build artificial general intelligence whether he participated or not. Altman, who describes himself as a "sci-fi nerd" who grew up believing advanced AI would be "one of the coolest things that humanity could ever build," characterizes the lawsuit as an attempt by a late-entering competitor - xAI, Musk's AI company, now integrated into SpaceX - to slow a rival while pursuing similar for-profit ambitions in its own orbital-compute strategy. With billions of dollars in potential damages and OpenAI's structure at stake, the case has drawn a star-studded witness list that includes Greg Brockman, Ilya Sutskever, Satya Nadella, and other figures who helped turn large language models from research curiosities into a core platform for cloud and consumer products. However it ends, the trial will offer a rare glimpse into how some of the industry's most influential technologists think about AGI risk, control over model weights, and the governance structures they believe are compatible with running frontier-scale AI systems.

The Richest Grudge Match in History

The trial between Elon Musk and Sam Altman makes the AI boom seem sordid and small. Elon Musk and Sam Altman are two of the most influential people in Silicon Valley, if not the world. Between the two of them, Musk and Altman run technology companies worth many trillions of dollars that promise to reshape civilization. But this morning, both sat under fluorescent lights in a courthouse in downtown Oakland, suffering through all manner of technical glitches as their respective attorneys kicked off the long-awaited trial in Musk v. Altman. As Steven Molo, a lawyer for Musk, began his opening argument, confused looks swept the courtroom. "We can't hear you," Judge Yvonne Gonzalez Rogers said. Someone fixed his microphone. Later, as Molo began to call into question Altman's integrity, his microphone cut out again, and his presentation disappeared from screens in the room. ("We are funded by the federal government," Gonzalez Rogers joked. "The judiciary is happy to take more funds.") Musk is suing Altman and OpenAI, among others, demanding legal and financial remedies that would effectively destroy OpenAI as we know it. The fight stretches back to 2015, when Musk partnered with Altman to create OpenAI out of concern, as they told it, that Google DeepMind could not be trusted to create artificial general intelligence. Corporate greed would get in the way of societal progress, they claimed, so OpenAI would be a nonprofit. After a falling out with Altman and other co-founders, Musk left in 2018. All of this was before OpenAI added a for-profit entity, and before ChatGPT became the fastest growing consumer app in history. In 2024, Musk sued, alleging that by putting profits above its founding mission, OpenAI had violated its founding charter and misused Musk's initial charitable donations. "It's very simple," Musk testified today. "It's not okay to steal a charity." Also named in his complaint are the OpenAI co-founder Greg Brockman and Microsoft, a major investor in the company. Musk is asking that Altman be removed from OpenAI's board, that the company convert back to a nonprofit, and for the return of allegedly "ill-gotten gains" -- some $150 billion -- which Musk says would go to OpenAI's charitable trust. Outside legal experts say that Musk is unlikely to win all or even much of this. His argument is confusing: OpenAI has certainly evolved from a nonprofit lab to a revenue-chasing, consumer behemoth, and a chorus of critics has alleged that it has deviated from its original mission of ensuring that AGI benefits humanity. But Musk himself appears to have insisted that OpenAI couldn't keep up as a nonprofit -- for instance, in early 2018, he wrote an email to OpenAI leadership saying that merging the firm with "Tesla is the only path that could even hope to hold a candle to Google." And even before he sued, Musk launched a rival for-profit company, xAI. "Mr. Musk's lawsuit is a pageant of hypocrisy," William Savitt, a lawyer for OpenAI, told the jury today, later adding that Musk had "sour grapes." (OpenAI, which declined to comment, wrote yesterday that the lawsuit is "a baseless and jealous bid to derail a competitor." Musk's legal team did not respond to a request for comment.) The substance of these claims is important to the AI industry as a whole. The ramifications of this lawsuit go beyond any company or executive: The conflict between Musk and Altman has itself directly shaped the course of the AI industry. It is, in effect, the AI boom's founding feud. The next few weeks of the trial will illuminate tensions about the development of AI that have grown only more urgent -- between profit and social good, and over who can be trusted with this technology. Already, the pretrial process produced no shortage of drama. Both sides published internal communication between Musk and OpenAI leadership. OpenAI shared texts suggesting that Musk had used a former member of OpenAI's board to keep tabs on the company. (That board member, Shivon Zilis, has multiple children with Musk, and in her deposition said that she is in a romantic relationship with him; asked about Zilis today, Musk said she was "my chief of staff and uh, well, yeah," smirking.) Musk's alleged ketamine use during important OpenAI negotiations, which he has said he does not recall, became a key issue until, in a recent pretrial hearing, Gonzalez Rogers deemed this line of inquiry irrelevant. The trial makes the AI boom seem sordid and small. In his sworn deposition, Altman wrote that Musk used to message him complaints that he wanted more credit for the success of OpenAI and took offense at not being included in an anniversary photo. Altman has also said, of Musk and his lawsuit, "Probably his whole life is from a position of insecurity. I feel for the guy." In the courtroom, Altman sat stonefaced next to Brockman and departed right before Musk took to the witness stand. Musk, for his part, has said that he would drop his lawsuit if OpenAI changed its name to "ClosedAI." Yesterday, as jury selection began, Musk began furiously posting on X and repeatedly called his co-founder "Scam Altman." Before the start of opening arguments today, Gonzalez Rogers admonished Musk and Altman for their social-media use, asking them to limit their "propensity" to post about the trial; both meekly assented, "Yes." Now we are all living in the fallout of Musk and Altman's vendetta. Disagreements over the direction of Google DeepMind, led to the creation of OpenAI, and then more disagreements led Musk to found xAI. Similarly, a few years ago, Dario Amodei and six other OpenAI employees split off to form a competing AI company, Anthropic, themselves trusting neither OpenAI's structure nor its leadership to prioritize the benefit of humanity over financial gain. And there's Mark Zuckerberg, whom Musk asked about joining forces to purchase OpenAI in 2025, according to texts released in pretrial discovery. (Meta previously declined to comment.) Zuckerberg has since spent tens or even hundreds of billions of dollars overhauling the AI team at Meta in a bid to catch up in the AI race. The very sort of AI schism that started with Musk and Altman keeps recurring. A more cynical description of this dynamic is that the AI boom is shaped by a very small group of men, nearly all of whom claim to be the best steward of humanity while being largely dismissive of their competition. At the same time, the goal of creating an organizational structure, whether nonprofit or corporate, to provide a check on a CEO has all but withered away. An independent board was supposed to govern OpenAI, but the company has basically been Altman's fiefdom -- just as Anthropic is Amodei's and xAI is Musk's. Grok has at times explicitly aligned its responses with Musk's political views by mimicking his social-media posts. Both sides have made the issue of concentration of power -- that no one company or person should control such a transformative technology -- central to their arguments. "If you have someone that's not trustworthy in charge of AI," Musk testified, "I think that's very dangerous to the whole world." The defense, meanwhile, said that "one person having control wasn't consistent with OpenAI's core mission." Apparently, the irony was lost on everyone. This trial will offer the clearest glimpse into an elite circle whose bickering is shaping the most expensive infrastructure buildout in human history in the name of a technology that could upend the labor market, spell the end of education as we know it, and reshape the geopolitical order. That is, as long as the microphones keep working.

Musk Lawyer Says Altman Made 'Mockery' of OpenAI Public Mission

Elon Musk's lawyer argued to a jury Tuesday that the billionaire's work to develop artificial intelligence technology for the public good was undermined by the co-founders of OpenAI when they turned it into a profit-making venture. Instead of sticking to the startup's mission to "benefit humanity" when it was launched in 2015, OpenAI Chief Executive Officer Sam Altman and President Greg Brockman "enriched themselves, they made themselves more powerful and they breached the very basic principles on which the charity was founded," Steven Molo, an attorney for Musk, said in his opening statement at a trial in federal court in Oakland, California. An attorney for OpenAI, William Savitt, countered that Musk's legal battle is primarily an attempt to undermine a top competitor to his own AI company, xAI. He also recounted multiple moments from the company's early years when Musk expressed support for a for-profit structure - with him in charge. The closely watched trial is the culmination of years of animosity and public feuding over the startup where the three men once worked together, before their relationship soured and they became rivals. The outcome could have far-reaching consequences for OpenAI's future as it eyes a much-anticipated public offering that is poised to be one of the largest in history as the company approaches a trillion-dollar valuation. Among the changes Musk seeks is a court order unwinding the for-profit restructuring of OpenAI that was completed in October. In his opening statement, Molo said the three-week trial will show that Altman and Brockman took advantage of Musk's money, reputation and guidance to get OpenAI off the ground -- and then decided to abandon its public-focused principles and capitalize on the project for their own benefit. Molo alleged that Microsoft Corp. was a knowing accomplice to that betrayal when the software giant pumped $13 billion into OpenAI starting in a 2019, a year after Musk left the startup's board. Microsoft stood by Altman and Brockman as they made an "absolute mockery of OpenAI's charitable mission," Molo told the nine-person jury. "No one should be allowed to steal a charity." In his own opening statement, Savitt said that in OpenAI's first year as a nonprofit research lab, Musk said in an email: "probably better to have a standard C corp with a parallel nonprofit." The next year, Musk said in another email that "it might have been a mistake for OpenAI to be set up as a nonprofit, given progress Deepmind was making," Savitt said, referring to an AI project at Alphabet Inc.'s Google. In 2017, Musk and others at OpenAI recognized the company would need to spend far more on computing resources to support its technology than they had previously expected. The founders had "dozens" of meetings and aligned on an idea to create a for-profit arm. "During these intense discussions in 2017, Mr. Musk never expressed the view that OpenAI should remain purely nonprofit," Savitt said. "The exact opposite was the case." Altman Versus Musk: How the Biggest Feud In Tech Landed in Court Get the Tech Newsletter bundle. Get the Tech Newsletter bundle. Get the Tech Newsletter bundle. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Plus Signed UpPlus Sign UpPlus Sign Up By continuing, I agree to the Privacy Policy and Terms of Service. That same year, Musk had his business manager create a for-profit entity called OpenAI Corp. A proposed capitalization table presented as evidence at the trial suggested Musk could own 55% of the for-profit entity, with other co-founders reduced to 7.5% each. At another point, Musk focused on moving OpenAI under Tesla Inc., pitching his car company as a "cash cow" for the AI developer, Savitt said, potentially giving him far more control. Musk, Savitt said, "wanted to turn OpenAI into a full-on for-profit company and take absolute control of it," but "the other founders refused to turn the keys of artificial intelligence over to one person." Savitt stressed that OpenAI's nonprofit foundation remains in control of the organization. As part of its for-profit conversion last year, the company said OpenAI would continue to be overseen by the nonprofit entity, now dubbed the OpenAI Foundation. The nonprofit also received a 26% equity stake in the company. Ultimately, Savitt said, Musk waited too long to sue and his claims are stale under legal rules. Musk knew everything he needed to file his complaint in 2020, but he didn't go to court until 2024, Savitt said, teeing up a key issue for the jury to decide. Russell Cohen, an attorney for Microsoft, said the dispute has little to do with the software company, which he said "has been a responsible partner every step of the way." "Together Microsoft and OpenAI have helped fund one of the largest nonprofits in history," he told the jury. "Unlike Mr. Musk, Microsoft never tried to control OpenAI," Cohen argued. "It saw a partnership without control. It saw a partnership that could benefit everyone."

In Clarifying Testimony About OpenAI, Elon Musk Says â€~I Literally Was a Fool’

If you’re looking for a Rosetta Stone to help you understand the Elon Musk-OpenAI trial, you could do a lot worse than Musk’s testimony todayâ€"particularly when he said he “literally was a fool,†to provide OpenAI with money. The lawsuit known as Musk v. Altman has at its center a conflict no more complex on its face than Itchy v. Scratchy, so when I say Wednesday’s testimony from Musk was clarifying, which it was, I realize the burden is on me to justify the idea that there’s any ambiguity. Here goes: Musk originally claimed in his suit that OpenAI CEO Sam Altman and company president Greg Brockman fraudulently induced him to fund what should have been a charitable effort to bring artificial general intelligence to the world. That fraud part is gone, and the scope of the suit has since been narrowed to “unjust enrichment†and “breach of charitable trust.†With these as the foundations of the suit, it seems like Musk's feelings on the matter may be consequential, which is why Musk saying he was a fool might make sense as a strategy. (Gizmodo is not a law blog, by the way). This passage from an article about Musk’s standing to sue is informative: “[â€|]even if Musk proves he was duped by Altman and Brockman, he may not have standing in the first place to sue them for restructuring the company to operate a for-profit subsidiary. Some legal scholars are puzzled over why the judge allowed him to bring this claim. “The idea that Elon Musk can sue because he was a donor or used to be on the board is pretty puzzling,†says Jill Horwitz, a law professor who studies nonprofit law at Northwestern University. “Typically, it’s up to the attorneys general to bring such a claim to enforce the charitable purposes. And that’s already happened.â€Â About a year ago, the California attorney general wrote that Musk’s lawsuit didn’t demonstrate a clear public interest component, and suggested that Musk had selfish motives. Musk’s lawyers countered that this was a misunderstanding, and that Musk doesn’t want to own OpenAI; he just wants it to go back to being a charity. (By the way, yesterday, my colleague AJ Dellinger stress tested the idea that Elon Musk is a hero to philanthropists.) So in other words, if I wrote a big check to someone who said they were building a free skin cancer treatment center for kids, and the recipients of my money built a for-profit botox clinic instead, the state would, hopefully, step in. But as an individual who wrote a charitable check, my money was gone before it was allegedly misallocated. The fact that charitable giving isn't a transaction makes it tricky to resolve an issue like this with a lawsuit. But perhaps in this example, a Musk-style lawsuit would claim the plaintiff has been injured simply on the basis that the donor feels tricked, and that he’s not going to get a plaque on the wall for the sick kids to read. And today’s courtroom reporting from NPR makes Musk’s Wednesday testimony seem like it’s headed in this direction: On the stand on Wednesday, under questioning from his own attorney, Musk said establishing a company like OpenAI as a non-profit gave it "the moral high ground. I guess there's sort of a halo effect." Also, he added, "there's some value" in having a lab that develops "digital superintelligence" to be non-profit.“ But what you can't do is have your cake and eat it too," reaping the "good association" with being a non-profit and then switching to a for-profit model, Musk said. “I was a fool who provided them free funding to create a start-up,†He said to his own lawyer in testimony, according to the New York Times. He added that he provided “$38 million of essentially free funding to create what would become an $800 billion company.†Keep in mind that Musk’s requested remedies are for Brockman and Altman to be removed from their roles, for $130 billion to be redirected from the for-profit corporation to its nonprofit foundation, and for OpenAI to be turned back into a nonprofit. Musk seems to be saying little more than, Please rule in favor of me, and restructure this company, because its leaders made a fool of me and created a huge corporation with what was arguably my money. But my earlier cancer center/botox clinic analogy might make this request seem a little dubious when you consider another exchange from today, as reported by the Wall Street Journal. Musk’s attorney asked him if his AI company, xAI, is an OpenAI competitor. “It is, at this point, technically competitive but much smaller than OpenAI,†he said. According to Elon Musk’s own pep talk to employees, xAI and its parent company SpaceX are unified in their mission to "accelerate humanity’s future in understanding [the] universe, and extending the light of consciousness to the stars.†Perhaps as a consequence of sounding like he’s singlehandedly creating Starfleet, SpaceX is reportedly attempting to be valued at over $2 trillion, which would probably make it the seventh most valuable company in the world. There’s a nine-person jury watching all of this, but its verdict will be purely advisory. Judge Yvonne Gonzalez Rogers, a district judge for the Northern District of California appointed by President Obama, will make the call.

Musk testifies OpenAI case will set precedent for "looting every charity in America," renounces personal benefit from $134B claim

Elon Musk told a federal jury on Tuesday that his lawsuit against OpenAI and its co-founders is not about him. "It is not okay to steal a charity, that's my view," Musk said from the witness stand in Oakland, California, in his first testimony under oath in the case he filed in 2024. "If we make it okay to loot a charity, the entire foundation of charitable giving in America will be destroyed. That's my concern." Musk said that if Altman and Brockman "get away with what they did, this case will become case law and become precedent to looting every charity in America." The framing was deliberate. Musk's legal strategy depends on making nine jurors believe that a fight between three billionaires over the control of the world's most valuable artificial intelligence company is actually a fight about whether American charitable institutions can trust that their missions will be honoured. "Fundamentally, I think they're going to try to make this lawsuit very complicated," Musk told the jury, "but it's actually very simple." That is not true. Nothing about this case is simple. But the question of whether the jury accepts Musk's simplicity or OpenAI's complexity will determine whether the most valuable startup in history is forced to unwind the for-profit conversion that made it worth $852 billion. Musk took the stand as the trial's first witness, immediately after a 20-minute recess following opening statements. His lawyer Steven Molo had already told the jury that "without Elon Musk, there would be no OpenAI, pure and simple" and that OpenAI's leadership "enriched themselves, made themselves more powerful, and breached the very basic principles on which the charity was founded." Molo used a museum analogy: a nonprofit can open a gift shop, but "the museum store can't loot the museum and sell the Picassos." On the stand, Musk's task was narrower. He needed to establish himself not as a competitor with a grievance but as a donor who was deceived. His lawsuit claims he was "assiduously manipulated" and "deceived" by promises to "chart a safer, more open course than profit-driven tech giants." The roughly $44 million he donated to OpenAI, according to Musk's legal theory, formed a charitable trust that required the organisation to remain a nonprofit. The for-profit conversion completed in October 2025 violated that trust. Musk has renounced any personal financial benefit from the case. Any damages awarded, up to $134 billion in wrongful gains, would flow to OpenAI's nonprofit foundation rather than to Musk personally. He is also seeking the removal of Altman from the board and from his role as chief executive, the removal of Brockman as president, and a court order unwinding the for-profit restructuring. The renunciation of personal benefit is legally strategic: it neutralises OpenAI's argument that the lawsuit is motivated by competitive jealousy and positions Musk as acting in the public interest rather than his own. Whether the jury accepts that positioning given the credibility questions that have surrounded Musk throughout this litigation, including the timing of his lawsuit relative to the founding of his own AI company xAI, is the central question of the trial's liability phase. Before Musk testified, William Savitt delivered OpenAI's opening statement. His argument was blunt: "We are here because Mr. Musk didn't get his way at OpenAI. He quit, saying they would fail for sure. But my clients had the nerve to go on and succeed without him." Savitt told the jury that in OpenAI's early years, Musk expressed support for a for-profit structure, with himself in charge. He said Musk used his funding promises to bully founding members and attempted to merge OpenAI with Tesla in 2017. "The other founders refused to turn the keys of artificial intelligence over to one person," Savitt said. "One person having control wasn't consistent with OpenAI's mission." Savitt showed the jury an email from former board member Shivon Zilis describing two for-profit restructuring options that were presented to Musk. "He supported a for-profit, so long as he was in control," Savitt argued. He claimed Musk "never expressed the view that OpenAI had to remain purely nonprofit, or even that he thought it should be." The two narratives are structurally incompatible. Musk's narrative requires the jury to believe he donated $44 million to a nonprofit AI safety project and was betrayed when its leaders converted it into a profit machine without his consent. OpenAI's narrative requires the jury to believe Musk always wanted a for-profit, tried to take personal control, failed, quit, and now uses the legal system to damage a competitor to his own AI company. The Zilis email is the pivotal piece of evidence. If it shows Musk supporting for-profit restructuring, it undermines his charitable trust claim. If it shows Musk insisting on personal control as a condition, it supports OpenAI's narrative but also shows that restructuring was being discussed with Musk's participation, which complicates the "stolen" framing. Musk's legal team will argue that discussing options is not the same as consenting to the specific conversion that occurred. OpenAI's team will argue that participation in restructuring discussions is inconsistent with a belief that the nonprofit structure was inviolable. The trial's outcome has immediate commercial consequences. OpenAI is approaching a trillion-dollar valuation and planning what would be one of the largest initial public offerings in history. A ruling that the for-profit conversion was unlawful could force the company to unwind the October restructuring, return assets to the nonprofit, and potentially delay or derail the IPO. Musk's filing states: "Never before has a corporation gone from tax-exempt charity to a $157 billion for-profit, market-paralyzing gorgon, and in just eight years. Never before has it happened, because doing so violates almost every principle of law governing economic activity." The trial is expected to last three weeks. Musk and Altman are each scheduled for more than two hours of testimony. Microsoft CEO Satya Nadella will testify for approximately one hour. Ilya Sutskever, OpenAI's co-founder who briefly ousted Altman in November 2023, will appear for 30 minutes. Mira Murati, the former chief technology officer, will appear via videotaped deposition. The advisory jury will deliver a verdict on liability that Judge Yvonne Gonzalez Rogers has said she will "likely" follow. If liability is established, a remedies phase beginning around May 18 will determine whether the court orders financial restitution, executive removal, structural reversion, or some combination. The judge, sitting in equity, has sole authority over structural remedies. The jury can only advise on monetary damages. This structure matters because Musk's most consequential request, the forced reversion to nonprofit status, is entirely in the judge's hands regardless of what the jury decides. OpenAI's $110 billion funding round in February, which valued the company at $852 billion and included $50 billion from Amazon, was predicated on the for-profit structure remaining intact. A court order unwinding that structure would not merely embarrass OpenAI. It would call into question the legal basis of every investment made since the conversion, including commitments from Amazon, Microsoft, SoftBank, and Nvidia that collectively exceed $200 billion. Musk told the jury the case is simple. The consequences are anything but.

Elon Musk to return to witness stand in trial over OpenAI's future

OAKLAND, California, April 29 (Reuters) - Elon Musk is set to return to the witness stand on Wednesday in a high-stakes trial over a lawsuit he brought against OpenAI, alleging the company ditched its mission to be a responsible steward of AI for humanity in pursuit of profits. In testimony on Tuesday before a nine-person jury in Oakland, California federal court, the world's richest person sharply criticized the 2019 decision by the nonprofit OpenAI co-founder and Chief Executive Sam Altman and its President Greg Brockman to create a for-profit entity. "If we make it okay to loot a charity, the entire foundation of charitable giving in America will be destroyed," Musk testified. OpenAI has said it created a for-profit ⁠entity to allow it to buy computing power and pay top scientists. Its lawyers have argued that Musk is motivated by a compulsion to control OpenAI and bolster his own AI company, SpaceX unit xAI, which lags OpenAI in user adoption. JUDGE SCOLDS MUSK OVER X POSTS The trial highlights the depth of the rupture between Musk and Altman. The two Silicon Valley icons once partnered in the quest to develop the fast-growing AI technology, a pillar of growth in the U.S. economy that is also fueling anxiety about job losses. The pair co-founded OpenAI in 2015 to create a benevolent steward of the technology and fend off rivals such as Alphabet Inc's (GOOGL.O), opens new tab Google. Musk, the chief executive of Tesla (TSLA.O), opens new tab and SpaceX, left OpenAI in 2018 after investing $38 million. Microsoft (MSFT.O), opens new tab, also a defendant, invested $10 billion in OpenAI in 2023. On Wednesday, Musk, 54, will ⁠resume being questioned by his own lawyer. He is then expected to be cross-examined by lawyers for OpenAI and the other defendants, who have argued that AI safety was not a priority for Musk when he was with the company and that he derided employees who focused on it "jackasses." Before jurors were seated on Tuesday, U.S. District Judge Yvonne Gonzalez Rogers admonished Musk after OpenAI lawyers complained about posts on X in which Musk assailed ⁠Altman as "Scam Altman." Musk, known for brash public commentary, agreed to minimize his social media activity, as did Altman. MUSK SEEKS $150 BILLION IN DAMAGES The trial comes as OpenAI prepares for a potential initial public offering that could value it at $1 trillion, Reuters has reported. The company also faces growing competition from ⁠rivals including Anthropic, while a Wall Street Journal report that OpenAI had missed some internal performance targets weighed on the tech-heavy Nasdaq Composite on Tuesday. Musk is seeking $150 billion in damages from OpenAI and Microsoft, with any award going to OpenAI's charitable arm. He also wants ⁠OpenAI to revert to a nonprofit, with Altman and Brockman removed as officers and Altman removed from the board. His claims include breach of charitable trust and unjust enrichment. OpenAI is currently structured as a public benefit corporation, in which the nonprofit and other investors including Microsoft hold stakes. Reporting by Deepa Seetharaman and Max A. Cherney in Oakland, California Writing by Luc Cohen Editing by Shri Navaratnam Our Standards: The Thomson Reuters Trust Principles., opens new tab * Suggested Topics: * Artificial Intelligence * Corporate Activism * ADAS, AV & Safety * Partnerships and M&A * Software-Defined Vehicle Max A. Cherney Thomson Reuters Max A. Cherney is a correspondent for Reuters based in San Francisco, where he reports on the semiconductor industry and artificial intelligence. He joined Reuters in 2023 and has previously worked for Barron's magazine and its sister publication, MarketWatch. Cherney graduated from Trent University with a degree in history.

OpenAI's Sam Altman 'stole a charity', Elon Musk claims as trial begins

Elon Musk's lawyer told a jury on Tuesday that OpenAI's chief executive Sam Altman "stole a charity" by converting the AI lab into a for-profit entity now valued at $850bn, against its mission of ensuring AI would benefit humanity. Steven Molo, Musk's lead trial lawyer, likened OpenAI to a non-profit museum with a gift shop, saying the "museum store" cannot "sell the Picasso and pocket the profits". "No one should be allowed to steal a charity . . . to steal a charity is absolutely wrong," Molo added. The billionaire entrepreneur sat in court in Oakland, California, on Tuesday, alongside OpenAI's president Greg Brockman and Altman, as attorneys presented opening arguments in a high-stakes legal clash over the world's most valuable start-up. The case brought by Musk claims he was deceived into donating roughly $38mn to OpenAI, believing it would remain a non-profit organisation. He has accused Altman and Brockman of unjustly enriching themselves by converting the start-up into a for-profit company. If Musk wins the four-week trial, it could unwind OpenAI's restructuring, completed last October, and jeopardise its ambitions for a trillion-dollar initial public offering, generating potentially huge returns for investors. It could also force Altman and Brockman off OpenAI's board. Citing OpenAI's founding documents from December 2015, which state its goal as advancing "digital intelligence in the way that is most likely to benefit humanity as a whole, unconstrained by a need to generate financial return", Molo argued "it wasn't a vehicle for people to be rich". Microsoft -- OpenAI's largest shareholder -- is also accused of "aiding and abetting" the start-up's conduct. The defendants deny all claims. In addition to Musk's early financial contributions to OpenAI, Molo said, the billionaire called on his network to ask them to do "favours" for the fledgling AI start-up, including Nvidia and Microsoft. "Without Elon Musk, there would be no OpenAI, pure and simple," Molo said. Evidence expected over the course of the trial is expected to include emails, text messages and diary entries from Brockman's personal journal, including an excerpt uncovered in discovery, in which he wrote: "This is the only chance we have to get out from Elon . . . Financially, what will take me to $1bn?" Judge Yvonne Gonzalez Rogers warned Musk over his prolific social media posts about OpenAI relating to the case. "There were a lot of tweets . . . and it really doesn't help to have stuff going on outside the courtroom that is inflammatory," the judge said. Musk argued he posted in response to OpenAI's social media activity ahead of the trial. OpenAI's opening arguments will also be heard on Tuesday, which are expected to include that the allegations are past the statute of limitations, that Musk's conduct bars his claims and that the start-up retains a non-profit committed to its founding mission.

Elon Musk alleges OpenAI abandoned charity roots in US trial case

Elon Musk took the stand Tuesday in a closely watched U.S. trial over the future of OpenAI, framing his lawsuit as a fight to protect charitable principles in artificial intelligence. The case pits Musk against OpenAI leadership, including CEO Sam Altman and President Greg Brockman, over whether the organization abandoned its original nonprofit mission. Musk claims OpenAI shifted from a public-interest model to a profit-driven structure, undermining its founding purpose. The lawsuit seeks $150 billion in damages and structural changes to the company.

Elon Musk and Sam Altman's court battle over the future of OpenAI

Sam Altman and Elon Musk are set to face off in a high-stakes trial that could alter the future of tech's leading AI startup, OpenAI. The trial begins with jury selection on April 27th, as Musk pushes forward his 2024 lawsuit that accuses OpenAI of abandoning its founding mission of developing AI to benefit humanity and shifting focus to boosting profits instead. Musk was a cofounder of OpenAI and claims that Altman and co-founder Greg Brockman tricked him into giving the company money, only to turn their backs on their original goal. However, OpenAI says that "This lawsuit has always been a baseless and jealous bid to derail a competitor" in a bid to boost Musk's own SpaceX / xAI / X companies that have launched Grok as a competitor to ChatGPT. In his lawsuit, Musk is asking for the removal of Altman and Brockman, and for OpenAI to stop operating as a public benefit corporation. Musk has also demanded that OpenAI's nonprofit receive up to $150 billion in damages he's asking for if he wins the case. Here's all the latest on the trial between Musk and Altman:

Musk v. Altman live updates: Musk to retake stand in day 3 of OpenAI trial

Elon Musk will continue his testimony on Wednesday as the high-profile trial in his lawsuit against OpenAI CEO Sam Altman enters its third day. Musk sued OpenAI, Altman and Greg Brockman, the company's president, two years ago, alleging they reneged on their commitments to preserve the artificial intelligence lab's nonprofit structure. Musk, who co-founded OpenAI in 2015, claims the roughly $38 million he contributed to the company was used for unauthorized commercial purposes that did not advance its charitable mission. The Tesla and SpaceX CEO was called to the stand to testify on Tuesday, where he told the jury about his background, his role in launching OpenAI and his understanding of its structure. He said he believes the time, money, expertise and resources he poured into the company during its early days were foundational to its success. Musk left OpenAI's board in 2018 after a number of disagreements with Altman and Brockman about the company's direction, including a failed effort to merge it with Tesla. Following Musk's departure, OpenAI established a for-profit subsidiary that allowed it to raise the capital it needed to develop its technology more easily. During questioning on Tuesday, Musk said he wasn't opposed to a smaller for-profit subsidiary within OpenAI, "as long as the tail didn't wag the dog." He said he does not think it's acceptable for the for-profit to take the "vast majority of the value" away from the nonprofit. "I could have started it as a for-profit and I chose not to," Musk said on Tuesday. "I chose to make it something for the benefit of all humanity." OpenAI has repeatedly dismissed Musk's lawsuit as baseless. William Savitt, OpenAI's attorney, told the jury on Tuesday that Musk sued because he "didn't get his way at OpenAI." Judge Yvonne Gonzalez Rogers is presiding over the trial in federal court in Oakland, California.

Elon Musk and OpenAI CEO Sam Altman head to court in high-stakes showdown over AI

OAKLAND, Calif. (AP) -- Technology tycoons Elon Musk and Sam Altman are poised to face off in a high-stakes trial revolving around the alleged betrayal, deceit and unbridled ambition that blurred the bickering billionaires' once-shared vision for the development of artificial intelligence. The trial, which is scheduled to begin Monday with jury selection, centers on the 2015 birth of ChatGPT maker OpenAI as a nonprofit startup primarily funded by Musk before evolving into a capitalistic venture now valued at $852 billion. The trial's outcome could sway the balance of power in AI -- breakthrough technology that is increasingly being feared as a potential job killer and an existential threat to humanity's survival. Those perceived risks are among the reasons that Musk, the world's richest person, cites for filing an August 2024 lawsuit that will now be decided by a jury and U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California. The civil lawsuit accuses Altman, OpenAI's CEO, and his top lieutenant, Greg Brockman, of double-crossing Musk by straying from the San Francisco company's founding mission to be an altruistic steward of a revolutionary technology. The lawsuit alleges they shifted into a moneymaking mode behind his back. OpenAI has brushed off Musk's allegations as an unfounded case of sour grapes that's aimed at undercutting its rapid growth and bolstering Musk's own xAI, which he launched in 2023 as a competitor. Musk, who invested about $38 million in OpenAI from December 2015 through May 2017, initially was seeking more than $100 billion in damages. But any damages now are likely to be much smaller after a series of pre-trial rulings that went against Musk. Musk has since abandoned a bid for damages for himself and instead is seeking an unspecified amount of money to be paid to fund the altruistic efforts of OpenAI's charitable arm. The money would be paid primarily by OpenAI's for-profit operations, and Microsoft, which became the company's biggest investor after Musk cut off his funding. Musk's lawsuit also seeks Altman's ouster from OpenAI's board. Musk's decision to stop funding the company contributed to a bitter falling out between the former allies. Musk says he was responding to deceptive conduct that OpenAI's board picked up on when it fired Altman as CEO in 2023 before he got his job back days later. But the trial also carries risks for Musk, who last month was held liable by another jury for defrauding investors during his $44 billion takeover of Twitter in 2022. Any damaging details about Musk and his business tactics could be particularly hurtful now because his rocket ship maker, SpaceX, plans to go public this summer in an initial public offering that could make him the world's first trillionaire. However it turns out, the trial is expected to provide riveting theater, with contrasting testimony from two of technology's most influential and polarizing figures in the 54-year-old Musk and the 41-year-old Altman. "Part of this is about whether a jury believes the people who will testify and whether they are credible," Gonzalez Rogers said during a court hearing earlier this year while explaining why she believe the case merited a trial. The judge will make the final decision on the case, with the jury serving in an advisory role. Musk, whose estimated fortune stands at about $780 billion, has long been hailed as a visionary for his roles creating digital payment pioneer PayPal, electric automaker Tesla and rocket ship maker SpaceX. But he has also provoked backlashes with his social media commentary, unfulfilled promises about Tesla's self-driving technology and his cost-cutting role last year in President Donald Trump's administration. Some of Musk's erratic behavior has been tied to allegations of taking hallucinogenic drugs, but Gonzalez Rogers ruled that he can't be asked during the trial about his suspected use of ketamine. But the judge is allowing Musk to be questioned about his attendance at the 2017 Burning Man festival in Nevada, a free-wheeling celebration known for widespread drug use. The judge is also allowing Musk to be questioned about his relationship with former OpenAI board member Shivon Zilis, the mother of several of his children. Altman, currently sitting on a roughly $3 billion fortune, didn't emerge in the public consciousness until the late 2022 release of ChatGPT. The tech boom triggered by that conversational chatbot has led some to liken Altman to a 21st-century version of the nuclear bomb inventor, J. Robert Oppenheimer. Although Altman was initially hailed as trailblazer he is now facing blowback amid worries about AI's potential dangers. Earlier this month, the New Yorker magazine published a profile that painted him as an unscrupulous executive. Days later, a 20-year-old man worried about AI's effect on humanity was arrested on attempted murder charges after throwing a Molotov cocktail at Altman's San Francisco home. The dueling testimonies of Altman and Musk are expected to open a window into some of the thinking that helped trigger the AI race, as well as the unraveling of their friendship. The kinship was forged in 2015 when they agreed to build AI in a more responsible and safer way than the profit-driven companies controlled by Google co-founders Larry Page and Sergey Brin and Facebook founder Mark Zuckerberg, according to evidence submitted ahead of the trial. Details of the bitter break between the two men were captured in a February 2023 email exchange that surfaced as part of the evidence leading up to the trial. After letting Musk know "you're my hero," Altman tells him: "I am tremendously thankful for everything you've done to help -- I don't think OpenAI would have happened without you -- and it really (expletive) hurts when you publicly attack OpenAI." Musk's response: "I hear you and it is certainly not my intention to be hurtful, for which I apologize, but the fate of civilization is at stake."

Elon Musk to Face Contentious Questions at OpenAI Trial: Live Updates

Mr. Musk has already spent two days laying out and defending his lawsuit against OpenAI, the A.I. start-up that he helped found and spent tens of millions of dollars funding. Mr. Musk has claimed that OpenAI abandoned its founding promise to remain a nonprofit and that his co-founders, including the company's chief executive, Sam Altman, took advantage of his donations. Mr. Musk has spent hours of testimony describing himself as someone who was protecting humanity from the dangers of A.I. He painted Mr. Altman and another OpenAI co-founder and defendant, Greg Brockman, as merely hungry for money. On Wednesday afternoon, the cross-examination became contentious as OpenAI's lead lawyer, William Savitt, called Mr. Musk's trustworthiness into question. Mr. Savitt tried to show that Mr. Musk behaved no differently from the OpenAI co-founders he is suing, pushing for the A.I. start-up to adopt a for-profit model. And Mr. Savitt pointed to evidence that Mr. Musk filed the lawsuit after he founded his own A.I. lab, xAI, in 2023, which has lagged OpenAI. Judge Yvonne Gonzalez Rogers, who is presiding over the case in federal court in Oakland, Calif., interrupted Mr. Savitt and Mr. Musk multiple times during the cross-examination on Wednesday. "The classic answer to a yes-or-no question is not so simple," Mr. Musk said. "For example, if you ask the question, 'Will you stop beating your wife?'" Judge Gonzalez Rogers cut him off, saying, "No, we're not going to go there." The sniping is likely to continue on Thursday, when Mr. Musk faces further questioning by lawyers for OpenAI and Microsoft, which is also named in the lawsuit. Mr. Musk is seeking more than $150 billion in damages from OpenAI and Microsoft, OpenAI's biggest financial partner. He is also asking the court to remove Mr. Altman from the board and to stop the start-up's recent shift to operate as a for-profit company. The trial could reshape the global A.I. race. OpenAI is a leading A.I. company, and a win for Mr. Musk would also be a win for its competitors, including industry giants like Google as well as young companies like Anthropic and xAI, which has now been absorbed by Mr. Musk's rocket company, SpaceX. A loss for Mr. Musk would mean that OpenAI, which is now valued at about $730 billion, would be free to continue its commercial course just as it appears to be heading toward one of the biggest initial public offerings in history. (The New York Times has sued OpenAI and Microsoft, claiming copyright infringement of news content related to A.I. systems. The two companies have denied the suit's claims.)

Musk says basis of charitable giving at stake in OpenAI lawsuit against Altman

A trial pitting two founders of OpenAI - Sam Altman and Elon Musk - against each other has opened in California, with the sides presenting duelling narratives about the company's history and obligations to consumers. Musk, wearing a dark suit and tie, was asked by one of his lawyers what the lawsuit was about when he took the stand. "It's actually very simple," he said. "It's not okay to steal a charity... If it's okay to loot a charity, the entire foundation of charitable giving will be destroyed." An OpenAI lawyer said the lawsuit was motivated by Musk seeking to kneecap a "competitor". Musk and Altman were warned by the judge against using their platforms to attempt to influence the trial. "We're here because Mr Musk didn't get his way at OpenAI," said OpenAI lawyer William Savitt. "Because he's a competitor, Mr Musk will do anything to attack OpenAI." Musk lawyer Steven Molo reminded the nine jurors in Oakland to put aside their opinions of the two Silicon Valley billionaires and former friends. "You all took an oath to put personal opinions aside," he said. "I know you will honour that oath." Molo said that Musk had become more involved in AI as the technology advanced rapidly, growing concerned that "the government was not stepping up" to regulate it. Musk's concerns increased, he added, after a 2015 meeting with then-President Barack Obama. His client, he said, had always believed that AI "wasn't a vehicle for people to get rich". He went on to describe Musk's involvement in OpenAI, to which he had donated $38m (£28m) over several years, while it was operating at a non-profit. "Without Elon Musk, there would be no OpenAI. Pure and simple," said Molo. Musk objects to OpenAI's decision to open a commercial arm in 2018, years before it debuted the software ChatGPT, kicking off the commercial AI market. In his opening arguments, Molo said that OpenAI CEO Altman and co-founder Greg Brockman "stole a charity". Musk is asking for billions of dollars in what his lawyers call "wrongful gains" that he wants used to fund OpenAI's non-profit arm, and he wants to see a shake-up at the company including the ousting of Altman. Musk's claims include breach of charitable trust and unjust enrichment. OpenAI's lawyer said that Musk had used his investment to "bully" other OpenAI founders, and that he had wanted to merge the company with Tesla, which he also owns. "The other founders refused to turn the keys of artificial intelligence over to one person," Savitt continued, adding: "When they refused to let OpenAI be absorbed" Musk "took his marbles and went home." "Since he couldn't control OpenAI, he left it. He left it, he thought, for dead." Speaking to Musk's legal case, he added: "Musk never cared about whether OpenAI was a non-profit." OpenAI says Musk is motivated by jealousy and regret for walking away from the company. And as the race to artificial general intelligence (AGI) barrels full steam ahead, OpenAI accuses Musk of trying to derail one of his key rivals. Musk's own platform, xAI, which makes the chatbot Grok, and has lagged behind competitors. xAI debuted in 2023, one year after ChatGPT hit the market. OpenAI has argued that Musk understood the decision to open a commercial arm, and that he left the company only after failing to become its CEO. Altman is also expected to testify during the trial. Also on Tuesday, Judge Yvonne Gonzalez Rogers said she had decided against imposing a gag order to prevent participants from being able to talk about the trial outside of court. On Monday, as the jury was chosen, Musk took to X, his social media platform, to refer to the defendant as "Scam Altman". She asked Musk for a "clean slate" going forward, and that he "Try to control your propensity to use social media to make things worse outside this courtroom." Defendants Altman and Brockman also agreed to do the same. A verdict is expected to be announced in late May.

'I was a fool': Elon Musk calls OpenAI's mission a 'safety risk' -- but courtroom gaffe proves he's out of the loop

The "billionaire divorce" over the future of AI just got awkward Testifying in a federal courthouse in Oakland, California on April 29, 2026, Elon Musk didn't hold back. Taking the stand in his high-stakes lawsuit against OpenAI and CEO Sam Altma, Musk cast himself as a founder who helped launch one of the world's most powerful AI companies, only to watch it transform into something he no longer recognizes. According to reports, Musk told the jury: "I gave them $38 million of essentially free funding which they then used to create an $852 billion for-profit company. I literally was a fool." The fight over OpenAI's original mission At the heart of the case, known as Elon Musk v. OpenAI, is a fundamental question: can a company founded as a nonprofit dedicated to benefiting humanity pivot into a commercial AI powerhouse without breaking its original promise? Musk argues the answer is no. He claims OpenAI's deep partnership with Microsoft and its shift to a "capped-profit" model represent a betrayal of its founding mission and, more critically, a growing safety risk as AI systems become more powerful and less transparent. OpenAI strongly disagrees. The company says no binding agreement required it to remain a traditional nonprofit, and that its current structure is necessary to fund the enormous cost of building and safely deploying advanced AI. According to a post on OpenAI's site, the company revealed a series of 2018 emails where Musk himself urged OpenAI to "attach to Tesla as its cash cow" and admitted that billions of dollars were needed immediately to stand any chance of competing with Google. The company also published a 2016 email exchange where Musk appeared to agree with OpenAI co-founder Ilya Sutskever that as the company got closer to building AI, it would make sense to be "less open," seemingly contradicting Musk's current legal claims that the company was always meant to be open-source. The 'safety risk' of going pro Musk's core argument seems to be less about money and more about the "soul" of AI. He testified that OpenAI's shift from a non-profit to a for-profit powerhouse backed by Microsoft (a move he calls "looting the charity") has created an existential safety risk. According to Musk, when a company prioritizes profit and IPO valuations over human safety, it creates a "race to the bottom" where safeguards are ignored to beat competitors like Google. He warned the court that allowing a single corporation to control "digital superintelligence" is a recipe for disaster. Musk's courtroom gaffe Despite his warnings about the "Terminator" end-of-days, the trial took an awkward during cross-examination. OpenAI's lead counsel, William Savitt, pressed Musk on his actual knowledge of the safety protocols currently used in the industry. When asked if he was familiar with "safety cards," Musk was forced to admit he was "not sure" what they were, according to a report from The Washington Post. For a man claiming to be the world's leading voice on AI safety, missing this detail was a major blow. In the AI world, a Safety Card (or Model Card) is the industry standard, essentially the "nutrition label" for AI that discloses information such as how the model was trained or even what biases it might have. A safety card also includes the results of "red-teaming" (stress tests to see if the AI will do something dangerous). The gaffe allowed OpenAI's lawyers to suggest that Musk's concerns are less about technical safety and more about "sour grapes" because he is no longer in control. Why this Musk vs OpenAI trial matters From the outside, this trial looks like a fight between billionaires, but the outcome of Musk v. OpenAI will matter to things like: * The price of ChatGPT: Musk is asking the court to force OpenAI back to its non-profit roots. If he wins, the current $20/month ChatGPT Plus subscription model could be dismantled in favor of public-access AI. * Microsoft's grip on Windows: Microsoft has billions invested in OpenAI. Musk is seeking to "unwind" this partnership, which could fundamentally change how Copilot works in your Windows laptop or Word documents. * Open source vs. secrets: Musk wants OpenAI's latest models like GPT-5.5 to be open-sourced. This would mean a flood of powerful, free AI tools for everyone, but it could also lead to the very "safety risks" Musk mentioned in the courtroom. The takeaway As of Thursday, April 30, the trial is nearing the end of its first week and is still only about 25% complete. Elon Musk is expected to wrap up his testimony today, with proceedings set to continue for another three weeks. Sam Altman and Satya Nadella are both expected to take the stand in the coming days. Musk is seeking $134 billion in damages, funds he says would be returned to OpenAI's nonprofit arm, and is also calling for Altman's immediate removal from the company. Follow Tom's Guide on Google News and add us as a preferred source to get our up-to-date news, analysis, and reviews in your feeds. Subscribe to Tom's Guide on YouTube and follow us on TikTok.

In court, Elon Musk accuses OpenAI of trying to 'have your cake and eat it, too'

Elon Musk arrives at the U.S. District Court in Oakland, Calif., Tuesday, April 28, 2026. Godofredo A. Vásquez/AP hide caption Elon Musk, of Tesla, SpaceX and DOGE fame, is testifying in court for a second day on Wednesday in his lawsuit against OpenAI and its CEO Sam Altman, a case that could alter the competitive landscape for artificial intelligence. The case hinges on whether OpenAI, founded by Musk, Altman and a handful of others in 2015, strayed from its original mission as a non-profit developing AI for the benefit of humanity when a for-profit arm was created to raise funding to supercharge its research. On Tuesday, lawyers for Musk and OpenAI delivered opening statements that painted starkly different pictures. Musk's team argued that Altman and OpenAI President Greg Brockman "stole a charity" and enriched themselves when they created the for-profit arm of OpenAI that has since ballooned in valuation. OpenAI's lead lawyer said this is a simple case of sour grapes, with Musk seeking to attack a rival because he is unhappy that OpenAI thrived after he left in 2018 following a disagreement about leadership. He launched his own competing company, xAI, in 2023. The for-profit arm of OpenAI was created to help raise money and attract talent. It is a subsidiary of the not-for-profit OpenAI Foundation. On the stand on Wednesday, under questioning from his own attorney, Musk said establishing a company like OpenAI as a non-profit gave it "the moral high ground. I guess there's sort of a halo effect." Also, he added, "there's some value" in having a lab that develops "digital superintelligence" to be non-profit. "But what you can't do is have your cake and eat it too," reaping the "good association" with being a non-profit and then switching to a for-profit model, Musk said. Musk said his faith in OpenAI following its original mission had three phases. The first was when he was "enthusiastically supportive," the second when he was "a little uncertain" that OpenAI was following its original mission, and a third developed once he felt "they were looting the non-profit." "We are currently in phase three," he said. At issue was a 2020 agreement with Microsoft that came with an investment from that company and would give it exclusive license for OpenAI's for the product. "This does seem like the opposite of 'open,'" Musk said. According to Musk, Altman reassured him via text message that the product would remain open and available to all. Musk said when he learned about an investment by Microsoft of $10 billion, he was disturbed and felt that the charitable trust had been violated because the size of OpenAI had grown beyond that of a charity. He said he felt Microsoft's investments indicated it expected a potentially large return, and he was concerned that Microsoft could come to control the development of artificial general intelligence, or AGI. "With all due respect to Microsoft, do you really want Microsoft controlling artificial general intelligence?" Musk said. "I reacted quite negatively," to the investment, he said, adding "I texted Sam Altman and said 'What the hell is going on?" or something to that effect." "The reality is that OpenAI had become, with all intents and purposes, a for-profit company with a $20 billion valuation." He said he did not accept equity because he felt it was not OK for a non-profit to have a valuation or equity holders. "Frankly, it felt like a bribe," he said of Altman's offer to him at the time to take an equity stake. Musk's testimony will continue later today under cross-examination from OpenAI's legal team.Microsoft is a financial supporter of NPR.

Jury Selection Signals the Start of Elon Musk and OpenAI's Blockbuster Court Battle

A long-awaited trial between Elon Musk and Sam Altman's OpenAI began in a federal court in Oakland, California on Monday morning. In 2024, Musk, a major early investor and co-founder of OpenAI, sued OpenAI, its CEO Sam Altman, President Greg Brockman, and major backer Microsoft, claiming that they had defrauded him of billions of dollars by turning OpenAI from a non-profit to a for-profit. Now, Judge Yvonne Gonzalez Rogers has seated a nine-person jury on Monday afternoon and opening statements will begin tomorrow. The trial will be divided into two parts. The first part is the liability phase, meant to last until May 21, when it will be passed on to the jury for an advisory verdict. Then, the judge will begin the remedies phase. Several very influential figures in the AI industry are expected to be called in for a testimony, including Musk, Altman, Brockman, and Microsoft CEO Satya Nadella. Both Altman and Brockman were in court for the first day of the trial, according to CNBC. In the meantime, here's everything you need to know. When OpenAI was founded as a nonprofit AI lab in 2015, Elon Musk was one of its co-founders and a major early investor. Then, Musk left the company in 2018. Prior to his departure, according to emails submitted to the court, Musk shared his opinion that "OpenAI is on a path of certain failure relative to Google" and that his company Tesla was "the only path that could even hope to hold a candle to Google." In 2023, he launched competitor xAI, an AI firm that he has since merged with another one of his companies, SpaceX. The joint xAI-SpaceX will make its market debut later this year, only months before a reported OpenAI IPO. Through xAI, Musk also made an unsolicited bid to acquire OpenAI for $97.4 billion in February 2025. Shortly after Musk left, under Altman's leadership, OpenAI changed its corporate structure, first to a "capped" for-profit company in 2019 and then finally into a for-profit public benefit corporation in late 2025. It also launched ChatGPT in 2022, to incredible success that catapulted the company to the top of the AI leaderboard. Musk brought charges against the defendants in August 2024, claiming more than $130 billion in damages for executing a "deceit...of Shakespearean proportions," according to the complaint, by allegedly manipulating Musk into thinking he was giving money to a non-profit when the plan all along was to turn OpenAI into a for-profit company. "Do you want to set legal precedent in the United States that it is ok to loot a charity?" Musk claimed in a post on X on Monday. "I could have started OpenAI as a for-profit corporation. Instead, I started it, funded it, recruited critical talent and taught them everything I know about how to make a startup successful FOR THE PUBLIC GOOD. Then they stole the charity." In an amendment submitted earlier this month, Musk said that he would like those damages to be paid to OpenAI's non-profit arm rather than to himself. On top of the damages, he wants the court to unwind OpenAI's conversion to a for-profit and to have both CEO Sam Altman and President Greg Brockman ousted. Just last week, Musk's team dropped the fraud claims and decided to proceed solely on the claims of breach of charitable trust and unjust enrichment. OpenAI denies the claims of fraud, arguing that Musk was involved in discussions to turn OpenAI into a for-profit company as early as late 2017. Musk allegedly wanted the company to merge with Tesla or for himself to be given majority control of any for-profit structure. OpenAI said they would not agree to Musk's terms for the for-profit structure, which allegedly led to Musk leaving the company under the false assumption that OpenAI had no chance of success. "Motivated by jealousy, regret for walking away from OpenAI and a desire to derail a competing AI company, Elon has spent years harassing OpenAI through baseless lawsuits and public attacks," OpenAI said in a statement. The company has also accused both Musk and Meta of "improper and anti-competitive behavior" before, and in the statement on Monday, claimed that Musk coordinated with Meta CEO Mark Zuckerberg to "undermine OpenAI's mission." The trial could unearth new details about both Elon Musk and Sam Altman amid heightened scrutiny of both figures and their respective companies. Over the past year, Musk and his companies were at the center of controversy after controversy. The billionaire's actions as part of the Trump administration caused riots aimed at Tesla dealerships. His unceremonious dumping from Trump's close circle, followed by reports of his frequent ketamine abuse, only amplified his bad reputation. In March, Musk was found to have misled investors in his acquisition of Twitter, but his team claimed that he did not face a fair trial because "so many jurors had antipathy toward Mr. Musk" that "the Court was unable to simply excuse those who expressed negative feelings towards him." Now his company, the joint xAI-SpaceX, is headed for a highly consequential IPO later this year, as the company continues to battle increased public and regulatory scrutiny due to Grok's rampant creation of non-consensual nude images of women and children on X. OpenAI is reportedly eyeing an IPO later this year as well, even though both the company and Altman haven't had a great year either. ChatGPT has been accused of facilitating fatal mental health episodes, including a murder-suicide in Connecticut and the suicide of a 16-year-old boy. The company has also received a lot of public outrage for inking a deal with the Pentagon right after Anthropic allegedly passed on it for concerns over mass domestic surveillance and fully autonomous weapons. A New Yorker investigationâ€"recently boosted by Elon Musk on X, adding to its visibilityâ€"also refocused public scrutiny on Altman, with multiple sources claiming that Altman was untrustworthy and even a sociopath. Shortly after its publication, Altman's home in San Francisco was hit with a molotov cocktail.

Musk v. Altman opening arguments: "stole a charity" vs "didn't get his way" as $134B trial begins in Oakland

"Ladies and gentlemen, we are here today because the defendants in this case stole a charity." That was how Steven Molo, Elon Musk's lead trial lawyer, opened the most consequential technology trial in a generation on Tuesday morning in an Oakland federal courtroom. Molo told the nine-person advisory jury that without Musk, "there would be no OpenAI, pure and simple," and that Sam Altman and Greg Brockman betrayed their co-founder and the public by turning a nonprofit dedicated to the safe development of artificial intelligence into what Molo called a "wealth machine." William Savitt, representing OpenAI, Altman, and Brockman, offered a blunter counter-narrative: "We are here because Mr. Musk didn't get his way at OpenAI. That's what happened. He quit, saying they would fail for sure. But my clients had the nerve to go on and succeed without him. Mr. Musk may not like that, but it's no basis for a lawsuit." Musk then took the stand as the trial's first witness. Both men were in the courtroom, in suits and ties, sitting at separate tables, in a trial that will last approximately four weeks and could result in remedies worth up to $134 billion flowing back into OpenAI's nonprofit foundation, the removal of Altman and Brockman from their roles, or the forced reversion of OpenAI to a nonprofit structure. Molo's strategy was to make the case simple. He avoided technical AI language and told a moral story about charity theft. His central analogy: a nonprofit museum can open a gift shop, but "the museum store can't loot the museum and sell the Picassos." The turning point in Molo's narrative was Microsoft's $10 billion investment in January 2023, which valued OpenAI at $20 billion. "This was not consistent with the nonprofit's mission," Molo told the jury. "It violated every commitment the defendants made, not just to Elon, but to the world." He framed Musk's roughly $38 million in donations as forming a charitable trust that required the company to remain a nonprofit in perpetuity, and the for-profit conversion as a breach of that trust. Molo asked Musk to stand during the opening. Musk stood and waved to the courtroom. Molo urged jurors to set aside any preconceived opinions about the Tesla and SpaceX chief executive. Savitt's counter-argument was that Musk wanted control, not charity. He told the jury that in 2017, Musk tried to take over OpenAI and merge it with Tesla, and that the other founders refused. "The other founders refused to turn the keys of artificial intelligence over to one person. One person having control wasn't consistent with OpenAI's mission." Savitt then showed the jury an email from Shivon Zilis, a former OpenAI board member, to Sam Teller, who worked for Musk, describing two restructuring options: rolling everything into a B corporation, or creating a separate OpenAI C Corp alongside the nonprofit. Savitt's point was that Musk was presented with for-profit options and supported them. "He supported a for-profit, so long as he was in control," Savitt said. He claimed Musk "never expressed the view that OpenAI had to remain purely nonprofit, or even that he thought it should be." In a 2023 email entered as an exhibit, Altman told Musk he was his "hero" but that he was hurt by Musk's attacks on OpenAI. The exhibit record includes hundreds of pages of emails, texts, and call logs. Musk took the stand after a 20-minute recess following opening statements, making him the trial's first witness. "If we make it okay to loot a charity, the entire foundation of charitable giving in America will be destroyed. That's my concern," he told the jury. He described his life history, including his roles at Tesla, SpaceX, and Neuralink, establishing his longstanding interest in safe AI development. Musk is no longer seeking damages for himself personally. He has renounced any personal financial benefit from the case and pledged to redirect any award to OpenAI's nonprofit foundation. The two remaining claims, unjust enrichment and breach of charitable trust, seek up to $134 billion in wrongful gains returned to the charity, the removal of Altman from the board and from his role as chief executive, the removal of Brockman as president, and the reversion of OpenAI to its original nonprofit structure. The trial that began with jury selection on Monday is now in its liability phase, with the jury's verdict serving as advisory guidance for Judge Yvonne Gonzalez Rogers, who will make the final determination. A remedies phase, if Musk establishes liability, is expected to begin on May 18. The trial is scheduled for approximately four weeks, with testimony allocations that reflect each witness's significance. Musk and Altman are each expected on the stand for more than two hours. Brockman is scheduled for two and a half hours. Satya Nadella, Microsoft's chief executive, will testify for approximately one hour. Ilya Sutskever, OpenAI's co-founder, will appear for 30 minutes. Mira Murati, OpenAI's former chief technology officer, will appear via videotaped deposition rather than in person, for roughly one hour. Stuart Russell, the UC Berkeley AI safety researcher and co-author of the foundational textbook "Artificial Intelligence: A Modern Approach," will serve as one of Musk's expert witnesses, likely testifying on whether OpenAI's mission shift endangered safe AI development. David Schizer, Columbia Law's dean emeritus and author of "How to Save the World in Six (Not So Easy) Steps," will testify on charitable trust law. Before the jury was seated on Tuesday morning, OpenAI's lawyers raised concerns about Musk's social media posts from Monday, in which he called Altman "Scam Altman" and accused him of stealing a charity. Judge Gonzalez Rogers told Musk to "try to control your propensity to use social media to make things worse outside this courtroom," adding: "Perhaps you've never done that before." She said she was loath to issue a formal gag order but encouraged both sides to minimise their public commentary. Both Musk and Altman agreed. The exchange captured the trial's fundamental tension: Musk is simultaneously the plaintiff arguing that OpenAI's leadership cannot be trusted with the world's most powerful technology and the man who posts "Scam Altman" on the social media platform he owns while the jury is being selected. All 11 of xAI's co-founders have departed the AI company Musk launched in 2023, and Musk is tearing xAI down to rebuild it weeks after folding it into the SpaceX IPO filing that would create a $1.75 trillion conglomerate with Musk holding 79 per cent of voting power. He is suing Altman for concentrating control of AI while building the most concentrated corporate structure in technology history. OpenAI's defence will lean heavily on the argument that Musk's lawsuit is competitive, not charitable. Savitt told the jury that Musk "quit, saying they would fail for sure" and then launched xAI to compete directly with the company he is now suing. The Zilis email is designed to undermine the core of Musk's case: if he was presented with for-profit restructuring options and supported them, his claim that the nonprofit conversion was an unauthorised betrayal becomes harder to sustain. But the email is a double-edged exhibit. It shows Musk engaging with restructuring options, which weakens his claim of surprise. It also shows Musk insisting on personal control as a condition, which supports OpenAI's narrative that the lawsuit is about power, not principle. Fortune has called this "a trial almost no one thinks Musk can win." Legal experts have noted the case may be analysed under the wrong body of law. Anthropic's valuation has surged past $800 billion, co-founded by former OpenAI executives who left over the same safety concerns Musk is now litigating, a reminder that the question of whether OpenAI abandoned its mission is not Musk's invention. It is a question that the people who built OpenAI's most important safety research answered by leaving. The trial will determine whether the legal system agrees with them, or whether Musk's own credibility is too compromised to be the vehicle for that argument.

OpenAI Is Shedding Baggage. Now It Needs a Jury's Help

The outcome of the case could greatly impact OpenAI's progress toward going public, with Bloomberg Intelligence putting the chances of OpenAI losing at 60%. In attempting to find a jury in the case of Musk v. Altman, US District Judge Yvonne Gonzalez Rogers chose to widen the pool of potential candidates for selection. That figures: To many Californians, being asked to side with either Elon Musk or Sam Altman is like deciding between getting a slap in the face or a knee to the groin. But decide they must, and their decision will have profound consequences for OpenAI and the broader artificial-intelligence landscape. Altman is accused of illegally converting OpenAI from nonprofit to for-profit. Musk is demanding that the structure be reverted, that Altman and OpenAI President Greg Brockman be removed as executive officers and that the company pay him $134 billion in damages -- funds he said he would donate to the reformed nonprofit. The stakes for OpenAI are existential at worse and a serious burden at best as it seeks to go public. In preparing for its initial public offering, the company has taken spring cleaning to the next level -- embarking on a culling of "side quests" like the video creator Sora, ending some science research and even putting on hold its plans for an erotic version of ChatGPT. On Monday, it was able to loosen the shackles of its deal with Microsoft Corp. that had long turned sour. OpenAI can now work with other cloud-computing firms to get the power it needs to keep expanding and gain much-needed enterprise customers. The deal between Microsoft and OpenAI, which had been seen as a significant boon for both firms just a couple of years ago, had risked turning ugly: Microsoft had considered suing at one point, according to a report. But while these baggage-shedding moves improve OpenAI's IPO prospects, they will hardly matter if the ChatGPT maker comes worse off in this nasty spat with Musk. Bloomberg Intelligence puts the chances of OpenAI losing at 60%. If the jury sides with Musk, it will, at the very least, greatly slow down OpenAI's progress toward the public markets, even if the company can eventually win on appeal. If that fails, it's hard to see how a nonprofit OpenAI would be able to attract the necessary funding to continue its current massive loss-making operations. Both Altman and Brockman were in attendance for jury selection on Monday. We're expecting to see them both again on the stand, along with other cast members from the OpenAI soap opera that has played out over the past few years. Former Altman colleagues like Mira Murati and Ilya Sutskever -- who left in the wake of the failed ousting of Altman in late 2023 -- are both expected to appear. On the eve of jury selection, OpenAI published some updated "principles" on making sure the technology it makes is democratized and does not further concentrate power in the hands of a few technology companies. Despite being valued at $852 billion, OpenAI can attempt to convince jurors that up against the likes of Amazon.com Inc., Alphabet Inc. and Meta Platforms Inc. -- valued in the trillions -- it is a relative minnow, an independent AI company to root for. Sign up for the Bloomberg Opinion bundle Sign up for the Bloomberg Opinion bundle Sign up for the Bloomberg Opinion bundle Get Matt Levine's Money Stuff, John Authers' Points of Return and Jessica Karl's Opinion Today. Get Matt Levine's Money Stuff, John Authers' Points of Return and Jessica Karl's Opinion Today. Get Matt Levine's Money Stuff, John Authers' Points of Return and Jessica Karl's Opinion Today. Plus Signed UpPlus Sign UpPlus Sign Up By continuing, I agree to the Privacy Policy and Terms of Service. That would be an extremely tough sell to a California jury were it not for the fact Altman's opponent is Musk. Core to Altman's defense will be questioning Musk's true motive: Is he looking out for the good of humanity and AI or seeking to protect his own effort, xAI, which is trailing OpenAI and other AI players in both sophistication and market share? "This lawsuit has always been a baseless and jealous bid to derail a competitor," OpenAI posted on X this week. That derailing has arguably already had the desired effect, regardless of what happens from here on in. Musk can claim to be a winner even if he ultimately loses the case. Slowing OpenAI down, complicating its chances to raise more capital, is a victory for him however you slice it. SpaceX, which is now the parent of xAI, is almost certain to go public before OpenAI and enjoy a boost from investors eager to buy into new AI stocks. That makes this case little more than a business expense for Musk: a few days in court where yet more damaging internal drama about a competitor will become public. For Altman and his company, the costs could be far, far greater. More From Bloomberg Opinion: * This Chip Supercycle Has One Collective Blindspot: Shuli Ren * SpaceX Widens Its Competitive Moat Ahead of IPO: Thomas Black * Musk Chases the Smart AI Money in $60 Billion Deal: Parmy Olson Want more Bloomberg Opinion? Terminal readers, head to OPIN <GO>. Or subscribe to our daily newsletter.

Musk faces second day of questioning in contentious trial over OpenAI's founding

Trial continues after heated back and forth during OpenAI's cross-examination of the Tesla CEO on Wednesday Elon Musk's court case against Sam Altman continues on Thursday, after a day of contentious exchanges during OpenAI's cross-examination of the Tesla CEO. Musk will face another round of questioning before his lawyer calls more witnesses, including OpenAI's president, Greg Brockman. Witness testimony and evidence has revealed formerly private emails, text messages and diary entries surrounding the formation of OpenAI, giving a behind-the-scenes look at how the tech behemoth was created. Many of the tech industry's most powerful players are named as witnesses and will give their account on the origins of Musk and Altman's bitter feud. Altman is set to testify later in the trial, which will last three weeks. Musk, who co-founded OpenAI in 2015, is arguing that Altman, Brockman and OpenAI broke a foundational agreement when they shifted the company from a non-profit intent on bettering humanity into a for-profit structure. Musk claims that Altman and Brockman unjustly enriched themselves and should be removed from the company. He is also seeking the undoing of the for-profit conversion and $134bn in damages to be redirected to OpenAI's non-profit arm. OpenAI rejects Musk's allegations and is attempting to show that he was always aware of plans for creating a for-profit entity. The AI firm's attorneys have stated Musk is "motivated by jealousy" of OpenAI's success after he left the company in 2018 after a failed attempt to take control. OpenAI has emphasized that it is still overseen by a non-profit. The trial, which began on Monday with jury selection at a federal courthouse in Oakland, California, has already produced dramatic moments and bold accusations. Musk and OpenAI's lead attorney William Savitt spent most of Wednesday in a heated back and forth, with the world's richest person becoming noticeably frustrated and saying that Savitt's questions "are designed to trick me". Silicon Valley is intently watching the trial for both its blockbuster testimony and the potential effects it will have on the AI industry. OpenAI is intending to go public later this year at around a $1tn valuation, but if Musk succeeds in this case, it could greatly complicate that effort - an outcome that would also benefit Musk's own xAI artificial intelligence firm. The nine-person jury will decide whether OpenAI is liable, but judge Yvonne Gonzalez Rogers will determine what, if any, remedies are necessary in the case.

Musk casts himself as AI's good guy in testimony vs. OpenAI

How the debate over Musk's motivations is resolved could be key to the outcome of the lawsuit the richest man in the world is waging against OpenAI. The big picture: Musk was the first witness in his lawsuit against Sam Altman, Greg Brockman, OpenAI and Microsoft. * Under questioning from his own lawyer, Steven Molo, Musk argued that the only way to keep AI from "killing us all" was to keep it out of the hands of anyone trying to make money on it. * He later acknowledged that his own AI company, xAI, is a for-profit. * Musk was able to avoid elaborating since SpaceX recently acquired xAI and the rocket company is in an SEC quiet period ahead of a planned public offering. Musk began by outlining his views about the risks of AI, repeating an oft-told story about how OpenAI wouldn't exist if Google co-founder Larry Page hadn't called Musk a "speciesist" -- meaning that Musk cares more about the human species than a potentially sentient AI. * Musk also claimed that he met with then-President Obama in 2015 to explain his fears. "I really just wanted to warn him about AI," Musk said on the stand. * He said he talked to "anyone and everyone" about AI safety. "It's a buzzkill," he remembers his brother telling him. * The path to safety, he said, is for the people building artificial general intelligence (AGI) to be "unencumbered by having to create financial returns." The other side: OpenAI lead counsel, William Savitt, drew a different picture in his cross-examination of Musk. * Instead of attacking Musk's concerns about the dangers of AGI, Savitt made the case that Musk was at least as concerned -- if not more concerned -- with profiting from AGI than the team at OpenAI. * Through hours of questioning, Savitt implied that Musk's safety concerns seemed to sharpen whenever someone else had the wheel. * Savitt also challenged Musk's picture of himself as "the paladin of safety and regulation." * "Has anyone but you ever made the claim that your meeting with President Obama was about AI safety?" Savitt asked. Yes, but: What hasn't yet been mentioned in this week's trial is the propensity of Musk's Grok chatbot to post racist messages, create non-consensual images of adults and generate explicit images of children. * OpenAI and Microsoft might be waiting to bring up Grok's behavior or might be avoiding it since chatbot behavior is so legally murky. * Savitt hinted at Grok's troubles, suggesting that the chatbot had been trained on racist and sexist content. To which Musk replied, "Just because you may read something that is racist or sexist doesn't mean you'll become racist or sexist." Zoom in: Savitt addressed Musk's concern about OpenAI's dedication to safety by asking him what he knew about the company's safety protocols. * Musk responded that because the company sought to make a profit, it couldn't be safe. When pushed, Musk seemed to morph into his internet troll persona. * Asked if he knew anything about OpenAI's "safety card," Musk smiled and replied: "Safety card? Why would it be a card?" * "Safety card" is an informal way to refer to a system card, which documents a model's capabilities, limitations and safety evaluations. xAI calls its equivalent "model cards." * In a meeting with reporters after court adjourned, Savitt called Musk a "reluctant witness." What's next: Musk's cross-examination continues tomorrow in Oakland, California.

Letting OpenAI win risks 'losing every charity in America' Elon Musk says in court, as his lawsuit hearing begins

* Elon Musk has taken to the stand in his lawsuit against OpenAI * Musk claims the switch from a non-profit organization was illegal * The verdict of the trial could have implications for the future of AI Elon Musk is taking ChatGPT developer OpenAI to court over its switch from a non-profit organization into a for-profit company, and Musk has taken to the stand to argue his case in front of a jury in Oakland, California. "I think they're going to try to make this lawsuit very complicated but it's actually very simple," Musk said as soon as he was given the opportunity to speak (via The Wall Street Journal). "It's not okay to steal a charity." In further comments, Musk said that if the lawsuit were to be decided in favor of OpenAI, it would mean the possibility of "losing every charity in America". OpenAI CEO Sam Altman has also been in the courtroom, but hasn't yet taken the stand. Some of the wind was taken out of Musk's sails by US District Judge Yvonne Gonzalez, who told jurors that the CEO of SpaceX and X was giving his personal perspective on the debate, and that his opinion had "no legal value whatsoever". 'No Elon Musk, no OpenAI' The feud at the center of the trial goes back to the earliest days of OpenAI. Musk invested a total of $38 million when OpenAI was in its non-profit stage, and had the mission of developing AI to benefit humanity. The company has since become a more traditional, for-profit venture, with goals that are not quite as noble. OpenAI and CEO Sam Altman say that Musk was perfectly aware that the pivot would eventually come, and that the change was necessary in order to effectively compete in a rapidly advancing AI industry worth billions of dollars. "Without Elon Musk, there would be no OpenAI," Steven Molo, the lead attorney for Musk, said in the opening statements for the case. Musk has since gone on to start his own xAI company which includes the Grok chatbot, and which is now part of SpaceX. As the case continues, we can expect to hear about some confidential, high-level discussions between executives at OpenAI. The case could have significant ramifications for the future of AI companies and the way they're regulated by law -- and it may lead to tighter safety protections inside bots like ChatGPT. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds. Make sure to click the Follow button! And of course you can also follow TechRadar on TikTok for news, reviews, unboxings in video form, and get regular updates from us on WhatsApp too.

Elon Musk vs. Sam Altman: What to know as OpenAI trial opens

Elon Musk, seen here not drinking Sam Altman's tears. Credit: Krisztian Bocsi/Bloomberg via Getty Images Here's the weather forecast for the next few weeks inside the federal courthouse in Oakland, Calif. -- cloudy with a chance of tech world tea spillage. Jury selection began Monday in Musk v. Altman, the Elon Musk-Sam Altman courtroom showdown over a lawsuit Musk filed two years ago. But the 12 citizens chosen may not be ready for the level of messy drama that's about to unfold. How messy? Corporate litigation lawyer Andrew Staltman, who's been watching Musk's lawsuit unfold for years, has offered the most memorable summary so far. "We're about to witness the landing of the Hindenberg on the deck of the Titanic," Staltman told the Washington Post. "It's going to be crazy and nasty." That might sound like an over-the-top teaser for a pilot episode of "Real Housewives of Silicon Valley." But if anything, it undersells the reality-show fireworks that may go off during this trial. Altman (a noted fabulist, as this month's Ronan Farrow expose in the New Yorker made clear) and Musk (who has failed to keep his promises multiple times, most recently promises about Tesla's full self-driving capabilities) look set to talk about each other under oath. At stake in the long-awaited trial is whether Musk was defrauded in 2019. That's the year Altman, who co-founded OpenAI with Musk and others, led the company's pivot from a nonprofit to a for-profit enterprise. If the Oakland jurors agree with Musk's fraud accusations, that could throw a major spanner into OpenAI's expected 2026 IPO (the company is currently valued somewhere north of $850 billion). Musk's lawyers have claimed OpenAI owes Musk anywhere up to $138 billion. But when it comes to these billionaires, it's not necessarily about the money. Musk, after all, has sued Altman and colleagues personally, rather than OpenAI the company. Altman and Musk have a relationship for which Meta's Mark Zuckerberg, a mutual friend who also shows up in court documents, might as well have created the "it's complicated" label. If you need convincing, consider the tea that has already been spilled. Here's a quick guide to the most eyebrow-raising revelations from court documents so far -- and this is all stuff that the federal judge, Yvonne Gonzalez Rogers, has already deemed central to the case. Many dreams and schemes are hatched between members of the tech elite at the annual desert festival in northern Nevada; for many in Silicon Valley, Musk included, Burning Man is less a vacation and more a religion. But never has one of those rambling conversations become so central to a lawsuit. In particular, we're talking about Burning Man 2017, when the theme was "Radical Ritual" -- said by the Burning Man organization to encompass "the ambiguous ground that lies between reverence and ridicule, faith and belief, the absurd and the stunningly sublime." That description could equally apply to the lawsuit, and in particular, Altman's lawyers' attempt to question whether Musk was even capable of recalling OpenAI negotiations while he was partying hard in the desert. "Do you recall, at Burning Man 2017, ingesting rhino ket?" That's what Altman's lawyers asked Musk during his deposition. Musk said he didn't know what rhino ket was; it's amphetamines mixed with ketamine, apparently, as well as the name of a 2024 song by Irish hip-hop group Kneecap. "It is plainly relevant that Musk spent multiple days at Burning Man in the midst of negotiations he now claims not to remember," Altman's lawyers have argued. "It speaks to the seriousness with which he took the discussions, and his focus, or lack thereof, on the future of OpenAI." Judge Rogers has ruled that Musk's ketamine use is out of bounds in itself -- asking about it could be "unduly prejudicial," she wrote in a pre-trial ruling -- but that a "supposed lapse in memory" based on that usage could be relevant. Musk has said he takes prescribed ketamine to treat depression. Musk's attendance at Burning Man, however, "is relevant to the attention he paid to his negotiations with OpenAI, which supposedly occurred during the same period," Rogers notes. What this means: "Rhino ket" won't be mentioned in court, but less specific "memory lapses" might. And get ready for the trial to enter the surreal world of Black Rock City -- full of art cars, wild costumes, and black light body paint -- as Musk's experience nine years ago is reconstructed. What happens at Burning Man may not stay at Burning Man. Reality shows often offer some form of baby mama drama. But in this case, spilling the tea on one of Musk's many co-parents -- Shivon Zilis -- has been deemed more than mere gossip. That's because Zilis, a VC and AI expert, is way more than just the mother of four Musk kids. (Musk has a total of 14 children with four co-parents.) She is what Altman called in his deposition "an Elon whisperer" -- a longtime ally who has since worked with him at Tesla and Neuralink. Zilis and Musk met after she joined OpenAI in 2016. She was the youngest member of the OpenAI board before she stepped down in 2023. In 2018, according to a text exchange in court documents, Zilis asked Musk if she should "stay close and friendly to OpenAI to keep info flowing" or "begin to disassociate" from the company. Musk, who had just stepped down from the OpenAI board at the time, responded: "close and friendly." Musk's lawyers, seeking to prove that a crucial Microsoft investment in OpenAI violated OpenAI's nonprofit structure, are relying in part on Zilis' testimony. But OpenAI says Zilis is compromised. Rogers has ruled that the relationship between Musk and Zilis is "highly relevant to Zilis' credibility." Zilis stated in her deposition that their relationship is currently romantic. What this means: Look for Altman's lawyers to argue that the romance part stretches back to 2016 and wasn't disclosed at the time. So we may be wading through personal text messages between the two, learning curious details like the fact that Zilis has Musk saved in her phone under the name "Schrodinger's Cat." Altman's lawyers may seek to prove that even the biggest names in the tech world tend to kowtow to Musk. If the litigious tech celeb has Silicon Valley running in terror of him, the reasoning goes, that makes it less likely that he was duped by Altman in the restructuring of OpenAI -- and more likely that this lawsuit is frivolous. Entered into court documents already are several times in which Mark Zuckerberg, founder and CEO of Meta, sought to curry Musk's favor. And this after Musk ridiculed Zuckerberg online, then publicly challenged the Meta chief to a cage match in 2023 and 2024. "Looks like DOGE is making progress," Zuckerberg texted Musk in Feb. 2025, as the highly controversial agency was taking a wrecking ball to the U.S. government and its employees were downloading social security data. Then he basically offered to cover up the real names of people like alleged cybercriminal Big Balls. Disclosing names of government employees isn't illegal; they are supposed to be working for (and get paid by) the people. But that was hardly the spirit of Zuckerberg's message. "I've got our teams on alert to take down content doxxing or threatening the people on your team," Zuckerberg wrote. Musk hearted the message, then asked Zuckerberg if he was interested in joining his OpenAI takeover bid. The two agreed to talk on the phone, although we don't know if a call actually took place. The Musk-led $97 billion takeover bid, announced several days later, was dismissed by Altman with a clap back that typifies their relationship. "No thank you but we will buy twitter for $9.74 billion," Altman wrote on X. Altman's jibe is just the tip of a very Mean Girls iceberg. Musk v. Altman contains many such cases. In 2016, for example, the two men were discussing whether OpenAI should use Microsoft or Amazon for its server farms -- a crucial question, as it turned out. Musk opted for Microsoft over Amazon, based, it seems, on the personalities of their respective CEOs. "I think Jeff [Bezos] is a bit of a tool and Satya [Nadella] is not, so I slightly prefer Microsoft," Musk wrote in an email. In his deposition, when asked about the "tool" comment, Musk doubled down before suggesting it wasn't a permanent condition: "He can be, you know ... there's a redemption arc for all of us." As if this trial wasn't high school enough, there's also a diary involved, that of Greg Brockman, OpenAI president and co-founder. "This is the only chance we have to get out from Elon," Brockman wrote in a partly-redacted entry filed by Musk's lawyers. This was in 2017, when OpenAI was starting to consider restructuring. "Financially what will take me to $1 B[illion]?" he added. Brockman, who was compelled to turn over the diary in March, cried foul on X. This Tweet is currently unavailable. It might be loading or has been removed. But ultimately it doesn't get more high school than the Altman-Musk relationship itself. "It really fucking hurts when you publicly attack OpenAI," Altman wrote to Musk in 2023, according to this filing. Why? Because "you're my hero." Incredibly, Musk texted back an apology. But then he added a phrase that baffled Altman, and that, if it remains his belief in the courtroom, practically guarantees fireworks between the two. "It is certainly not my intention to be hurtful, for which I apologize," Musk wrote. "But the fate of civilization is at stake."

OpenAI trial pitting Elon Musk against Sam Altman kicks off

OAKLAND, California, April 28 (Reuters) - A trial that could help shape the future of artificial intelligence begins on Tuesday, with billionaires Elon Musk and Sam Altman at odds over the evolution of ChatGPT maker OpenAI from a nonprofit to a profit-seeking juggernaut worth hundreds of billions of dollars. Opening statements in Musk's civil lawsuit against OpenAI and Altman will take place in the Oakland, California, federal court, following the selection on Monday of nine jurors. Musk claims that Altman and Greg Brockman, respectively OpenAI's chief executive and president, betrayed him and the public by abandoning the company's mission to be a benevolent steward of AI for the benefit of humanity, and turning it into a "wealth machine" for themselves and investors. The world's richest person is seeking $150 billion in damages from OpenAI and Microsoft (MSFT.O), opens new tab, one of its largest investors, with proceeds going to OpenAI's charitable ⁠arm. He also wants OpenAI to revert to a nonprofit, opens new tab, with Altman and Brockman removed as officers and Altman removed from its board. Musk, the Tesla (TSLA.O), opens new tab and SpaceX founder, has said he provided about $38 million of seed money to OpenAI for its original mission, only to see OpenAI create a for-profit entity in March 2019, a little over a year after he left its board. OpenAI countered that Musk knew about and supported the transformation, and sued only after failing to become CEO, and starting his own AI company to stunt its growth. Musk is no longer seeking damages for himself as he pursues breach of charitable trust and unjust enrichment claims. U.S. District Judge Yvonne Gonzalez Rogers has said she wants jurors to begin deliberations on the defendants' liability by May 12. The jurors include nurses, city workers and retirees. If they find the defendants liable, both sides will argue possible remedies to the judge. Musk, Altman and Microsoft chief Satya Nadella are among the witnesses expected ⁠to testify, with Musk taking the stand as soon as this week. EGOS AND PERSONALITIES Musk and Altman co-founded OpenAI in 2015 with a goal of developing AI to benefit humanity and fend off rivals such as Google (GOOGL.O), opens new tab. The trial could offer a window into some of the egos and personalities that shaped OpenAI as it evolved from a nonprofit research lab in Brockman's apartment to a company worth more than $850 billion. It risks complicating OpenAI's plans for a potential initial public offering by casting doubt on its leadership, and could ⁠also intensify Americans' fears about AI technology more broadly. OpenAI has argued that Musk was motivated by jealousy in trying to undermine its growth and prop up his own xAI, which he founded in 2023 shortly after OpenAI launched ChatGPT. It has said Musk was involved in discussions to create OpenAI's new structure and demanded to be CEO, opens new tab. Microsoft has denied having colluded ⁠with OpenAI and says it teamed up with OpenAI only after Musk left. OpenAI faces growing competition from rivals including Anthropic, and is spending billions on computational resources. A potential IPO could value the company at $1 trillion, Reuters has reported. Musk's xAI trails far behind OpenAI in usage. He has folded that business into his ⁠rocket company SpaceX, whose own potential IPO this year could be the largest ever. Last fall, OpenAI overhauled its structure again to become a public benefit corporation, in which the nonprofit and other investors including Microsoft hold stakes. The nonprofit holds a 26% stake, plus warrants if OpenAI hits certain valuation targets. A public benefit corporation could make OpenAI more investor-friendly while retaining its charitable origins. Reporting by Deepa Seetharaman in Oakland, California; Editing by Daniel Wallis Our Standards: The Thomson Reuters Trust Principles., opens new tab

If OpenAI Loses This Trial, It Could Effectively Be Eliminated in Its Current Form

Can't-miss innovations from the bleeding edge of science and tech Little love has been lost between Elon Musk and Sam Altman. The two billionaires have been openly feuding for many years now, despite founding OpenAI together over a decade ago. Musk left the organization in 2019 over disagreements with leadership -- and the falling out has only grown since then. Musk has filed several lawsuits against the ChatGPT maker, most recently alleging it had breached its fiduciary duties by turning what was once a non-profit "charity" into a profit-maximizing corporate behemoth. OpenAI denies these allegations, arguing that Musk was "motivated by jealousy" after being pushed out for demanding to merge OpenAI with Tesla and assume majority control. The stakes rose exponentially this week as a trial for Musk's lawsuit against the company, initially filed in 2024, kicked off in an Oakland courthouse. Musk is demanding that OpenAI to undo its recent conversion into a for-profit entity, sack Altman and his board, and $130 billion in damages, which his lawyers refer to as "ill-gotten gains." The anxiously-awaited legal proceedings could have vast implications not just for OpenAI -- which is rumored to be plotting an IPO -- but for the AI industry as a whole. OpenAI is shackled to most of the industry's biggest players through multibillion-dollar contracts, meaning that if it were to make concessions, lose its status as a for-profit company, and its CEO, it could send major ripple effects across an already shaky industry. If Musk were to win -- a decision that could materialize at the end of an estimated three weeks of legal proceedings -- the effects could tear apart the already-widening cracks in Silicon Valley's all-in, trillion dollar bet on AI, effectively popping the "AI bubble" which experts have warned about for years now.Analysts have long grown wary that the industry's unprecedented levels of spending are making any hope of an eventual return on investment a long shot, meaning that a massive legal setback for OpenAI could therefore set off a powder keg of pent-up anxiety. A loss for OpenAI could also set a dangerous legal precedent. "The broader question of whether AI labs founded as charities can lawfully pivot into commercial enterprises would be settled, at least in California," as University of Sydney media and communications researcher Rob Nicholls argues in a piece for The Conversation. "This has potential implications for Anthropic and other mission-driven peers." Besides, plenty of damage has already been done. The trial "has already pried open Silicon Valley's normally sealed boardrooms, surfacing diaries, Slack threads and HR memos that paint an unflattering portrait of OpenAI's governance," Nicholls noted. It's an especially precarious time for OpenAI, which has desperately consolidated its efforts to focus on its core offerings, including ChatGPT and a coding tool, by killing off distracting "side quests." The company is still bleeding billions of dollars every quarter, despite earmarking a whopping $600 billion in AI infrastructure expenses over the next four years. Raking in enough cash to cover its astronomical spending spree could prove extremely difficult as well. As the Wall Street Journal reported this week, CFO Sarah Friar has warned internally that the company could fail to grow revenue fast enough to "pay for future computing contracts." The company already missed its own internal user growth and revenue targets for 2025. Where that leaves OpenAI's plans for an IPO is anything but clear, with Friar reportedly butting heads with Altman on when to go public, a disagreement both denied in a statement to the WSJ. Now that Musk and Altman's bitter feud has broken into the public in entirely unprecedented ways, the winner of the ongoing trial could take it all. "If Musk wins, it could result in the defeat of a key competitor in the race to AGI," law professor and UCLA exec Rose Chan Loui told the BBC. "Whoever wins that race will have a lot of power." Musk has less to lose than Altman. But a victory could certainly bolster his position. He recently folded his (very much for-profit) AI startup xAI into his space company SpaceX, which is also expected to go public in the coming months at a record-shattering valuation of $1.75 trillion. By declaring victory over his archnemesis, Musk could aggregate even more influence over the industry. At the same time, nobody knows what will be left of that industry if it turns out that OpenAI's plans to shed its non-profit roots were illegitimate and Altman is forced to resign. If OpenAI were to fall, many other companies closely tied to its continued success could follow, a domino effect that could have a lasting impact "felt for many years to come," per Nicholls. A loss for OpenAI could hit an already exposed nerve as investors have long grown wary of an industry hellbent on spending as much money in as little time as possible without ever establishing a feasible, long-term business model. A high-stakes, popcorn-chomping "clash of the titans" lawsuit likely isn't going to dispel that fear.

Elon Musk and Sam Altman Head to Court

On the docket -- OpenAI has since restructured into a for-profit company, a move that Musk alleges is a breach of charitable trust relating to the roughly $38 million he donated to OpenAI in its earliest days. He has also accused Altman and OpenAI's President, Greg Brockman, of unjust enrichment. (This month, Musk dropped a third allegation from the suit, that he had been fraudulently misled about OpenAI's plans to convert to a for-profit.) OpenAI's lawyers argue that Musk's suit is baseless, and motivated by a competitive desire to stifle OpenAI's position in the AI race. Musk runs a competitor to OpenAI, xAI, which he recently subsumed into his rocket company SpaceX.

Elon Musk testifies Google co-founder sided with the robots: 'Larry Page called me a speciesist' | Fortune

Elon Musk had a colorful first day of testimony in his lawsuit against OpenAI. Taking the stand Tuesday afternoon in an Oakland federal courthouse, the world's richest man reportedly told the nine-person jury that AI "could kill us all," and invoked both James Cameron's Terminator (bad outcome of AI) and Star Trek (good outcome of AI). He also pinned the entire story of OpenAI on a single insult he says Google co-founder Larry Page once hurled at him: "specieist." The trial, which is expected to run about four weeks, centers on Musk's 2024 lawsuit accusing OpenAI of betraying its founding mission as a nonprofit "for the benefit of all mankind." Musk co-founded the lab in 2015 alongside Sam Altman after the two spent weeks discussing their fears of AI falling into the hands of profit-seeking megacorporations, namely Google. However, by 2017, the group realized that building advanced AI would require more funding than a nonprofit could raise, and they discussed creating a for-profit stance. Musk, who had donated at least $38 million to the lab, wanted to be CEO and gain majority control, but felt deceived after a power struggle with Altman over the role. He then departed in 2018. After ChatGPT's 2022 launch turned OpenAI into a roughly $730 billion company, Musk sued, alleging Altman and OpenAI president Greg Brockman stole a charity. He is seeking more than $150 billion in damages from OpenAI and Microsoft. OpenAI's lawyers tell a slightly different story. Lead counsel William Savitt told jurors in his opening statement that Musk had simply lost a power struggle and was now nursing his "sour grapes," particularly because Musk now runs his own for-profit AI lab, xAI. "My clients had the nerve to go on and succeed without him," Savitt said. "Mr. Musk did not like that." Musk's version of AI history But on the stand, Musk brought the jury back a decade ago, when he and Altman plotted how to keep AI away "from the bad guys." He testified that those concerns about AI crystallized during a 2015 meeting with Page, when the Google co-founder predicted AI would bring utopia. Musk worried Page wasn't taking the risks seriously, to which, according to Musk, Page accused him of being a "specieist" -- someone who favors humans over the digital life-forms of the future. "The reason OpenAI exists is because Larry Page called me a 'specieist,'" Musk told the court. He went on to lay out a relatively binary vision of AI's future borrowed from pop culture. "We don't want to have a 'Terminator' outcome," he said. "We want to be in a Gene Roddenberry outcome, like 'Star Trek.' Not so much a James Cameron movie like 'Terminator.'" Musk also discussed Neuralink, his brain-chip startup, describing its goal as "AI safety" through "AI-human symbiosis," and called SpaceX "life insurance for life as we know it." Yet, even as he positions himself in court as the last line of defense for charitable giving in America, his foundation, the Musk Foundation, has failed to give away the legally required 5% of its assets for four years running, according to public filings. The jury is asked to set aside their impressions of Musk to adjudicate the case. Musk returns to the stand on Wednesday morning, where he will be cross-examined by OpenAI's lawyers.

Elon Musk and Sam Altman's court showdown will dish the dirt

Elon Musk cofounded OpenAI, and then flounced off in a huff when he wasn't anointed CEO, leaving Sam Altman as the last power-hungry man standing. Now, Musk is back with a lawsuit, and a trial is scheduled to start in Oakland, California, on April 27th. Theoretically, it's a legal case about whether OpenAI defrauded Musk. But that's not really what we're all doing here. This is about mess. Over the past couple of years, Musk's legal theories for punishing OpenAI have run the gamut from breach of contract to unfair business practices to false advertising. Now, he and Altman will be getting called to the stand at a particularly delicate time. Musk's xAI, now a part of SpaceX, has filed for an initial public offering. OpenAI is rumored to be considering an IPO itself. There are only billions of dollars at stake. And so naturally, there's a lot of internal tech gossip coming to light. Questions about Elon's "rhino ket" use won't make it into the trial... but it's in news stories because it showed up in the docket. We got excerpts from OpenAI President Greg "What will take me to $1B?" Brockman's diary. Mark Zuckerberg, not involved in the litigation at all, has had several embarrassing texts made public, like allegedly telling Musk that he had Meta teams "on alert to take down content doxxing or threatening the people on your [DOGE] team," weeks after claiming he refuses to moderate based on government requests. Also, Musk thinks Jeff Bezos "is a bit of a tool." The fact that the case got to trial at all is a win for Musk, who seems to be trying to damage OpenAI's reputation however he can -- from lawsuits to general shit-talking to, apparently, a homophobic dossier on Sam Altman that's getting passed around Silicon Valley by "Musk intermediaries." Musk v. Altman "only ended up at trial because Elon Musk can pay his attorneys to argue a losing case," said Sam Brunson, a professor of law at Loyola University of Chicago. "If I were doing this on contingency, I'd assume I wouldn't be getting paid." Over the next few weeks, high-profile AI executives, such as Microsoft's CEO Satya Nadella and CTO Kevin Scott, will likely testify. Former OpenAI executives, such as cofounder Ilya Sutskever and Mira Murati, former CTO, may be called. The former board members involved in Altman's temporary 2023 ouster from his CEO role may also testify. Lawsuits appear to be Musk's preferred alternative to therapy. Musk has sued perceived adversaries of his X social media platform, including a suit against a nonprofit that was dismissed as "baseless" and another against the firm that successfully made him follow through on his agreement to buy Twitter. Tesla and SpaceX are hotbeds of litigation. Let's not go over the numerous family law matters that Musk is involved in due to his 14 known children. Musk has actually filed four lawsuits against OpenAI. The first -- for a breach of the founding agreement -- was in state court, in 2024; Musk withdrew it immediately before a major hearing. We then got the current lawsuit, also filed in 2024, in which Musk alleged "Shakespearean" deceit. Several of its claims, including a laughable invocation of racketeering law, have been dismissed. Another suit, filed a year later, this time by xAI, accused Apple and OpenAI of engaging in anticompetitive behavior by making an agreement to exclusively put ChatGPT into iPhones. (The case is ongoing.) A fourth case accused OpenAI of poaching xAI employees and stealing trade secrets. It was dismissed. In court starting next week, Musk will be making three main claims: that Altman and Brockman, et al., breached OpenAI's charitable trust; that they participated in unjust enrichment (at Musk's expense); and that they committed fraud. His lawyer will tell a jury that he was duped into giving OpenAI money on terms that Altman and Brockman didn't live up to. Among other things, he's demanding that Altman and Brockman be removed from their company roles, that OpenAI be required to award a certain amount of money to its nonprofit, and that it cease operating in its current structure as a public benefit corporation. OpenAI has countered that Musk failed to prove that Altman and Brockman ever made him a "cognizable promise" that could amount to unlawful activity, and that he lacks the standing for some claims, among other objections. It's pointed out that Musk could have intervened in the company's 2025 recapitalization in the time between OpenAI filing and its review by two attorneys general, and he did not. "This suit is the latest move in Elon Musk's increasingly blusterous campaign to harass OpenAI for his own competitive advantage," OpenAI wrote in one filing. "Since launching a competing artificial intelligence company, xAI, Musk has been trying to leverage the judicial system for an edge. The effort should fail." In court, OpenAI could argue that it engaged in self-help -- such as starting its for-profit arm -- because Musk left it in the lurch when he pulled promised funding from the nonprofit, says Peter Molk, a professor of law at the University of Florida. But that may not be enough to protect OpenAI. "My walking away doesn't mean you can break any agreement we have," Molk says. Musk may argue that OpenAI should have brought him to court and forced him to pay up. Of course, if OpenAI had done that, it likely would have gone bankrupt. The details that come out in the trial about OpenAI "will absolutely change its reputation, if it's still trying to claim it's doing this in some high-minded, 'we want to make AI safe for humanity' way," said Deven Desai, a professor of business law and ethics at the Georgia Institute of Technology. "The court documents and testimonies will make it harder and harder for OpenAI to keep claiming that's what it's about." Since this lawsuit was initially filed, OpenAI's reputation has cratered. Besides the assorted lawsuits from people who say ChatGPT encouraged loved ones' suicides, constant exec reshuffling, and the dominance of Anthropic's enterprise product have significantly cooled enthusiasm for the company. And there's always the question of whether OpenAI, one of the most expensive startups ever, will make a profit that meets investors' expectations. Already, we've found out that Sutskever and others were worried about the success of Stability AI, a then-competitor open-source lab. Sutskever also felt "betrayed" by Reid Hoffman, an early investor, founding his own AI lab; in response, Altman said, "I think at this point OpenAI has the leverage to ask for a soft promise for new investors not to invest in competitors." Altman also didn't tell the board he was personally running an OpenAI VC fund, according to a deposition of former board member Helen Toner. Some of the damages Musk is calling for in his lawsuit -- like the demands to unseat executives and change the company's business structure -- are likely unrealistic. State attorneys general from California and Delaware both blessed OpenAI's restructuring. But Georgia Tech's Desai says that even if the federal court doesn't move to act on such requests, Musk might still get what he wants. The suit could do real damage, especially ahead of OpenAI's impending IPO, and amid some shareholders reportedly questioning if Altman is the person to lead the company during that process -- especially as allegations of his untrustworthiness and manipulative behavior resurface. Musk's strategy here is likely not just about angling to win in court, but also to "go after OpenAI as it currently exists," says Desai. "It's to create enough issues around how it has evolved to cause trouble and possibly get to the point where even if Musk doesn't win, he'll have made it look like it's not worth keeping Mr. Altman in his position." Musk has his own AI project with xAI and is nakedly trying to damage a competitor, says Molk. Much of the damage -- bad PR, the cost of litigation, and distracting Altman and other executives as they begin to prepare for an initial public offering -- occurs outside the purview of the courtroom, Molk says. "As long as there is some credibility [to Musk's case], the motivation doesn't matter," he says. The suit is part of a yearslong feud between Altman and Musk, ever since their personal and working relationships both soured in a public way. Musk's xAI is aimed at the same government contracts and consumer chatbot users as OpenAI. He also folded xAI into SpaceX, as he had planned to do with OpenAI and Tesla. OpenAI has responded to Musk by blogging. According to OpenAI, Musk himself wanted a for-profit arm of OpenAI -- and further, 50 to 60 percent of its equity, and to be its CEO. He also proposed merging OpenAI with Tesla. OpenAI's lawyers, playing dirtier, asked in depositions about Musk's purported escapades at Burning Man, including whether he'd ingested "rhino ketamine." This fits with its legal tactics elsewhere -- including subpoenaing nonprofits and requesting a full list of who attended a deceased 16-year-old's memorial services. OpenAI is racing both SpaceX and Anthropic for an initial public offering. And there's more investor pressure than ever to generate revenue, after companies like OpenAI and Anthropic raised billions of dollars without generating profit. Reportedly, even OpenAI's CFO doesn't believe the company is ready to go public in 2026 due to its sizable spending commitments. Other executives have nevertheless expressed a desire to beat Anthropic to the public market. Any scandalous information about OpenAI's C-suite could derail the IPO. Musk is also potentially vulnerable to mud-slinging. Musk's SpaceX has filed confidentially for an IPO, which may happen as soon as June. Anything revealed in the courtroom about xAI or Musk personally could potentially affect investor interest or confidence, particularly since the IPO may follow so quickly on the heels of the trial. We already know from texts surfaced in discovery that Musk was actively recruiting from OpenAI. There are other topics -- such as Musk's relationship with Shivon Zilis, the former board member of OpenAI and mother of several of his children -- that are particularly sensitive, too. Zilis, who was effectively OpenAI's "Elon whisperer," has already questioned what the meaning of a "romantic relationship" is in her deposition. (Zilis: 'Relationship' is a relative term. But there have been romantic moments.") And in a 2018 text message, Zilis asks Musk if she should stay "close and friendly" to OpenAI to "keep info flowing." She also told Musk that after he hung up on a call, Sutskever was "visibly devastated" and Musk could probably recruit him if he wanted to. Another key witness on OpenAI's list is Jared Birchall, Musk's fixer -- who, among other things, runs Musk's family office. Birchall is likely privy to a number of Musk's secrets, and his testimony could be damaging. On the other hand, "I'm not sure how much reputation Musk has left to lose," says Brunson.

OpenAI trial live updates: Opening arguments in Musk v. Altman lawsuit set to begin

The highly anticipated trial between Elon Musk, the world's richest man, and Sam Altman, the CEO of OpenAI, is heading into its second day on Tuesday. Attorneys for Musk and OpenAI will present their opening arguments to the jury, which was seated after several hours of questioning on Monday. Depending on how long opening arguments last, Musk's lawyers could call their first witness to the stand to testify on Tuesday. Musk and Microsoft CEO Satya Nadella are among the names on their witness list. Musk sued OpenAI, Altman, and Greg Brockman, the company's president, in 2024, alleging they went back on their promises to keep the artificial intelligence lab a nonprofit. OpenAI established a for-profit subsidiary after Musk left its board in 2018, something Musk claims he was assured would never happen. OpenAI has characterized Musk's lawsuit as a baseless "harassment campaign." The company said Monday in a post on X that it "can't wait to make our case in court where both the truth and the law are on our side."

Musk Says He 'Was a Fool' to Provide OpenAI's Early Funding

It was 2018, and Elon Musk was having a very busy year. His electric car company, Tesla, was struggling with manufacturing problems. He had a plan to take it private, but he kept angering regulators. SpaceX, his rocket company, was just starting to show momentum. And OpenAI, the nonprofit artificial intelligence lab he was supposed to be involved in, wasn't getting much of his attention. "I did not even have the time to attend board meetings," Mr. Musk said on Wednesday, the second day of his testimony in a trial that pits him against OpenAI, two of its co-founders and the company's giant partner, Microsoft. That year, the seeds of today's court fight were sown. Executives at OpenAI, which was founded as a nonprofit, were considering attaching a for-profit company to its structure. Mr. Musk did not have a problem with that, he said, but he wanted to make sure the nonprofit was still in charge. Now he regrets he that he did not play a more active role before he left the lab in early 2018 and that he gave it money to get off the ground in the first place. "I was a fool who provided them free funding to create a start-up," Mr. Musk said in response to a question from his lawyer, Steven Molo. "I gave them $38 million of essentially free funding to create what would become an $800 billion company." In what is expected to be a monthlong trial in federal court in Oakland, Calif., Mr. Musk is arguing that OpenAI breached its founding contract when it took on Microsoft as an investor and started creating commercial products. He is asking for $150 billion in damages and for OpenAI to unwind the for-profit company it created last year. Today, OpenAI is one of the tech industry's most influential companies. Mr. Musk, of course, emerged from that rough year to become the wealthiest man in the world. But the relationships he had at the time with Sam Altman, OpenAI's chief executive, and Greg Brockman, the company's president, have long since been severed. The hard feelings between the tech tycoons have been difficult to miss in the trial. Mr. Musk and Mr. Altman have known each other for years and hobnobbed in the same elite Silicon Valley circles. But mutual admiration -- which led to their creation of OpenAI in 2015 -- has soured to unapologetic animosity. As Mr. Altman and Mr. Brockman watched from the courtroom gallery, just behind their lawyers, Mr. Musk, the first witness in the trial, continually described his former co-founders as a deceitful pair who duped him and steered OpenAI away from its altruistic roots. Mr. Musk described how OpenAI evolved after he left the lab in early 2018, though he continued to donate money to the lab and received updates on its progress. About a year later, Microsoft invested $1 billion in OpenAI -- a hint that it was starting to take its commercial potential seriously. Mr. Musk said he was aware of Mr. Altman's efforts to create a for-profit company and to raise money from Microsoft. But the company had put a cap on the profits that would flow to investors, so he said he did not think it was a big problem. OpenAI and Microsoft also had a plan to dissolve their partnership if OpenAI created artificial general intelligence, essentially a machine that can do anything the human brain can. That provided additional reassurance, Mr. Musk added. But he said he became very concerned when Microsoft said in early 2023 that it had invested $10 billion in OpenAI. That was after the release of ChatGPT, which quickly became an industry sensation. Mr. Musk said he sent a text to Mr. Altman asking, "What the hell is going on?" and calling the investment a "bait and switch." "They had essentially turned the nonprofit into a company with a $20 billion valuation," he said. Microsoft "is not going to put $10 billion into something unless they think they are going to get a very big return," he added. "There is no other way they are going to think about it." Mr. Altman and OpenAI offered him equity in the company after Microsoft's investment, Mr. Musk said. But he did not take it. "Frankly, it felt like a bribe," Mr. Musk said. But William Savitt, OpenAI's lead counsel, implied that Mr. Musk's testimony contradicted what he had said in depositions ahead of the trial. Did he donate $38 million to OpenAI -- as he said in his testimony -- or $100 million? In a deposition, he said it was $100 million. Their exchange grew combative. "Your questions are not simple," Mr. Musk said. "They are designed to trick me, essentially." In another retort, he said: "The classic answer to a yes-or-no question is not so simple. For example, if you ask the question, 'Will you stop beating your wife?'" Judge Yvonne Gonzales Rogers, who is presiding over the trial, cut him off. "No, we're not going to go there," she said. Mr. Savitt also has a complicated relationship with Mr. Musk. He once represented Mr. Musk and Tesla in a securities fraud lawsuit over the car maker's acquisition of the solar company SolarCity. Then he switched sides and represented Twitter against Mr. Musk, after the billionaire tried to back out of his 2022 acquisition offer for the social media company. After Mr. Musk completed his purchase of Twitter, now X, the company sued Mr. Savitt's law firm, Wachtell, Lipton, Rosen & Katz, claiming that the firm's earnings of $90 million for its representation of Twitter under previous management was "unjust enrichment." The social media company dismissed its lawsuit last year. Mr. Savitt returned to a number of emails Mr. Musk had discussed in his earlier testimony, and showed how they could be interpreted very differently. One email, Mr. Savitt said, demonstrated that as OpenAI explored a shift to a for-profit model in late 2017, Mr. Musk wanted a large stake in the organization and full control. That included the ability to choose a majority of the board members. Mr. Savitt displayed other old emails where Mr. Musk promised the other OpenAI founders that he would create a for-profit company with him in control. As his testimony stretched into the afternoon, Mr. Musk became visibly frustrated with Mr. Savitt, calling his questions "definitionally complex." Mr. Musk also lashed out at Mr. Altman. Mr. Savitt displayed a 2018 email in which Shivon Zilis -- a longtime employee of Mr. Musk's and the mother of four of his children who was also a former OpenAI board member -- asked Mr. Musk if she should stay close to OpenAI to keep feeding him information on the company. Mr. Musk responded that Mr. Altman "did not keep the board informed, which was why he was fired from the company." OpenAI's board briefly forced our Mr. Altman in late 2023, but Ms. Zilis was not on the board at the time. He returned after five days of negotiations. Mr. Musk now has his own A.I. company, xAI, which has become part of SpaceX. Mr. Savitt implied that Mr. Musk's suit was just an attempt to delay OpenAI's progress as his engineers improved xAI's chatbot, Grok. He asked Mr. Musk if he agreed that Grok "lags much farther behind" ChatGPT. "Not anymore," Mr. Musk said. (The Times has sued OpenAI and Microsoft, claiming copyright infringement of news content related to A.I. systems. The two companies have denied the suit's claims.) The trial and Mr. Musk's testimony are expected to continue on Thursday. Ryan Mac contributed reporting from Los Angeles.

Musk v Altman: Inside the trial that could reshape the AI race

The bitter feud between Elon Musk and OpenAI boss Sam Altman has raged for years, but has mostly played out online in the form of accusations, counter-accusations and jibes. But starting on Tuesday, the beef between the two tech billionaires will shift to a much higher-profile forum: a federal courtroom in California, where their row will be the focus of a month-long trial. Being considered is Musk's claim that Altman - with whom he founded OpenAI - has swindled him out of millions of dollars and reneged on the ChatGPT-maker's original non-profit mission. Musk and Altman themselves will be among those to testify in a case in which the future of AI could be at stake. And while one will presumably emerge the winner, it's plausible that neither will emerge from the saga unscathed. The brawl has been likened to two heavyweight boxers heading into the ring. One observer compares it to King Kong taking on Godzilla. "Musk and Altman are so big, so larger than life, and so unrelatable," says University of San Diego professor Sarah Federman, who specialises in conflict resolution. "That's what makes them so delicious to watch as they clash." Now, a nine-person jury sworn in on Monday will help determine the outcome under the oversight of Judge Yvonne Gonzalez Rogers, who has promised that the wealth, power and celebrity Musk and Altman bring to the federal courthouse in Oakland will afford them "no special treatment". Musk is also suing OpenAI and its co-founder and president Greg Brockman, along with Microsoft, whom he said aided in the scheme to monetise the company - claims which Microsoft denies. Musk is asking for billions of dollars in what his lawyers call "wrongful gains" that he wants used to fund OpenAI's non-profit arm, and wants to see a shake-up at the company including the ousting of Altman. OpenAI says Musk is motivated by jealousy and regret for walking away from the company. And as the race to artificial general intelligence (AGI) barrels full steam ahead, OpenAI accuses Musk of trying to derail one of his key rivals. Musk and Altman co-founded OpenAI as a non-profit in 2015 with the mission of ensuring that AGI benefits all of humanity. AGI is loosely defined as AI that surpasses human intelligence. When OpenAI was formed, Musk's star had fully ascended. He was widely viewed as a relentless technologist, bringing electric vehicles into the mainstream as the head of Tesla while also developing revolutionary reusable rocket technology at SpaceX. Altman, meanwhile, was well-known in Silicon Valley but not beyond. From his perch heading the influential tech incubator Y Combinator, his oracle-like pronouncements on Twitter were eagerly consumed by budding start-up founders. Musk and Altman were reportedly introduced by a Silicon Valley investor in 2012. Altman, still in his twenties, was 14 years younger than Musk and would go on to pitch the idea of OpenAI to the Tesla and SpaceX boss. Developing AI responsibly constituted a key part of the pitch. With OpenAI, the men were friendly collaborators with a shared belief in the technology's potential. At a joint conference appearance in 2015, Musk said AI was the one technology that "could most change humanity" but added it was "really dodgy" and "fraught with difficulty". But what began as a non-profit was shifted into a for-profit entity - illegally, according to Musk. For its part, OpenAI contends that in 2017, the defendants and Musk agreed that a for-profit was the logical next step "to advance the mission" but that they rejected Musk's push to be CEO with "absolute control". Musk left OpenAI in 2018 following a reported power struggle with Altman. "Guys, I've had enough," Musk wrote in an email a few months prior to his departure. "Either go do something on your own or continue with OpenAI as a nonprofit. "I will no longer fund OpenAI until you have made a firm commitment to stay or I'm just being a fool who is essentially providing free funding for you to create a startup." In 2022, OpenAI kicked off the consumer AI revolution with the release of ChatGPT which immediately surged in popularity, reaching 100 million monthly active users within months. Musk has since started his own AI start-up, xAI, which makes the chatbot Grok, which has lagged behind competitors. When he sued in 2024, Musk alleged that OpenAI had strayed from its core mission and was instead focused on "maximising profits" for Microsoft. He said he had donated around $40m (£30m) to OpenAI after being manipulated by the defendants who betrayed him by moving to turn it into a mostly for-profit entity. Since the lawsuit was filed, the animosity between Musk and Altman has frequently spilled into public view. Last year, Musk and a consortium of investors offered to purchase OpenAI's assets for $97.4bn. The company had been valued at $157bn in a recent funding round. (It's now approaching a rumoured public listing, or IPO, with a value of about $850bn.) OpenAI rejected the offer and Altman subsequently posted on Musk's social media platform X, formerly known as Twitter, "no thank you but we will buy twitter for $9.74 billion if you want". "Swindler," replied Musk in a comment on Altman's post. Private texts with Mark Zuckerberg show Musk asking if the Meta boss was "open to the idea of bidding on the OpenAI IP with me and some others?" Musk's interest in buying the company risks muddying the waters when it comes to this trial, says Columbia Law School professor Dorothy Lund. "Musk has tried to take over OpenAI multiple times. He's been spurned," Lund told the BBC. "So it's not crazy to think his motives might be a little suspect here. Even the judge in this case, Judge Gonzalez Rogers, has called this out." The court is also expected to hear testimony from Microsoft boss Satya Nadella, former OpenAI scientists Mira Murati and Ilya Sutskever, and former OpenAI board member Shivon Zilis, who is also the mother of four of Musk's children. Colourful details about the private lives of the brawling billionaires have trickled out in the run-up to trial as attorneys wrangle over the evidence and testimony that should and shouldn't be shared with the jury. The Tesla boss's use of "rhino ket", as it's known in Silicon Valley parlance, for instance, will not be allowed in court, the judge has ruled. Musk's legal representation has also made news. One of his lawyers has been moonlighting as a clown in his downtime, according to Business Insider. Another, who's a Hollywood producer on the side, was recently profiled by Vanity Fair magazine. The stakes in this case are high for Musk and OpenAI - and, potentially, all of us. As recently as late 2023, Musk was advocating for a pause in AI development. Amid that wave of concern about the frenetic pace of the technology's advancements, Altman was briefly ousted as chief executive of OpenAI on concerns that he misled members of the board. Now, with xAI, which was recently acquired by his soon-to-IPO rocket company SpaceX, Musk is deeply invested in the multi-player dash towards AGI. "If Musk wins, it could result in the defeat of a key competitor in the race to AGI," said law professor Rose Chan Loui, the executive director of the Lowell Milken Center for Philanthropy and Nonprofits at UCLA. "Whoever wins that race will have a lot of power." She says Musk is attempting to position himself as the right person to adequately and fairly represent the interests of the OpenAI non-profit. "Even though I'm appreciative of his elevating this issue in the public's eye, I think a lot of us worry that he's not actually unbiased, given that he runs his own very large AI company," she said. The character of the person bringing such claims matters, according to Federman, who recently authored the book Corporate Reckoning on how executives can take responsibility for corporate harm. This Musk v Altman trial is transpiring as the public has only just started to grapple with AI's complicated entry into our lives. Both men have been at the forefront of bringing it to consumers. The trial could offer new insights into their ambition and intent for the development of a technology now used by a growing subset of the global population. In King Kong vs. Godzilla, "all the little people below are scrambling as these giants hit each other," says Federman. "One ultimately wins - but what's really left is this path that the rest of us have to live with." 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As trial against OpenAI begins, Elon Musk seeks Sam Altman's ouster

Elon Musk arrives at the U.S. District Court in Oakland, Calif., Tuesday, April 28, 2026. Godofredo A. Vásquez/AP hide caption A courtroom brawl between two of the tech industry's most powerful leaders, Tesla CEO Elon Musk and OpenAI CEO Sam Altman, is underway in Oakland, California in a case that could transform one of the world's most important artificial intelligence companies. "Ladies and gentlemen, we are here today because the defendants in this case stole a charity," Steve Molo, an attorney for Musk, said in his opening statement. In his lawsuit, Musk has argued that Altman steered the company they cofounded a decade ago, ChatGPT creator OpenAI, away from its original mission as a nonprofit meant to develop advanced AI for the benefit of humanity and free of profit motives. The case hinges on a decision early on by OpenAI's founders that they needed to create a for-profit entity to tap capital markets for funding on a scale necessary to build advanced AI. When discussions about who would run the for-profit business broke down in 2018, Musk left. The following year, OpenAI launched a for-profit division, which has since ballooned in value; at the end of March, the company said it was worth $852 billion. Now, Musk's lawyers are set to argue that Altman and others enriched themselves illegally through that for-profit conversion. "They enriched themselves, they made themselves more powerful, and they breached the very basic principles on which the charity was founded," Molo said in court. According to his suit, Musk is seeking a rollback of that change, and wants Altman, OpenAI President Greg Brockman and financial backer Microsoft to "disgorge" tens of billions of dollars in "ill-gotten gains" that have flowed from it. Musk is also seeking Altman's ouster as a director of OpenAI's nonprofit board, and removal of both Altman and Brockman as officers of the for-profit company. As part of his opening statement, Molo asked Musk to stand up, which he did -- waving to the people in the courtroom. "Everybody seems to know Mr. Musk and everybody seems to have an opinion about Mr. Musk," Molo said. But he reminded the jury that they took an oath to put their opinions aside, and thanked them for it. "The case isn't about Mr. Musk, it's about the defendants," he said. He also filled the jury in on Musk's personal and business history; growing up in South Africa, immigrating to Canada and the United States, and giving a brief overview of Musk's companies including SpaceX, Tesla, and Neuralink. Molo said that since college Musk has been concerned about what could happen when computers become smarter than people, and that over the course of the trial, his attorneys would call experts to testify about some of those risks, including the possibility that an AI could manipulate financial markets or disseminate misinformation, or that there could be a "concentration risk" caused by one powerful corporation or small group of people controlling a superpowerful AI. "As AI became more advanced, Elon became more worried," Molo said, particularly about the idea that the government was not doing enough to curtail these risks. That led him to develop OpenAI along with Altman, Molo said, as a nonprofit intended to develop safer AI. "It wasn't a vehicle for people to get rich," Molo said. "And they wanted the technology to be open." Musk poured about $38 million into the nonprofit over the course of about 5 years, Molo said. "Without Elon Musk there would be no OpenAI, pure and simple," he said. Over time, Molo said, Musk and OpenAI's other leaders began discussing creating a for-profit entity to support the non-profit -- he compared it to the way a museum store supports a museum. Initially, Molo said, Musk would have majority control of the for-profit subsidiary, but eventually that would be diminished over time. But the partners could never come to an agreement, and Musk ended negotiations and later resigned from the OpenAI board. The crux of his dispute with OpenAI, Molo said, is that OpenAI later did a $10 billion deal with Microsoft. At this point, Molo said, OpenAI "was no longer operating for the good of humanity as a whole. It was for profit operating for the good of the defendants." OpenAI has long contended that Musk was onboard with the conversion to a for-profit company. In an online statement published before the trial began, OpenAI has said Musk was involved in the discussions about converting part of the company to a nonprofit, and that in 2017, "We and Elon agreed that a for-profit was the next step for OpenAI to advance the mission." OpenAI has also argued online that its mission has never changed. The for-profit entity is a subsidiary of the nonprofit OpenAI Foundation. The company has framed the dispute as being more of a struggle over control than over the launch of a for-profit arm: Online, OpenAI has said that Musk wanted control of the for-profit company, but "we couldn't agree to terms on a for-profit with Elon because we felt it was against the mission for any individual to have absolute control over OpenAI." "We're sad that it's come to this with someone whom we've deeply admired -- someone who inspired us to aim higher, then told us we would fail, started a competitor, and then sued us when we started making meaningful progress towards OpenAI's mission without him," the OpenAI statement said. In 2023, Musk launched his own AI company, xAI, now a subsidiary of his aerospace firm SpaceX. And in court on Tuesday, OpenAI's lead counsel William Savitt hammered those points in his opening statement. "We're here because Mr. Musk didn't get his way at OpenAI," he said. And "because he's a competitor, he will do anything he can to attack OpenAI." In 2017, he said, Musk wanted to turn OpenAI into a for-profit with himself at the helm. But, he said, "the other founders refused to turn the keys of artificial intelligence over to one person." Musk sought to merge OpenAI with Tesla, he continued, but the other founders rejected that, too. "They didn't want to be part of a car company that Musk controlled," Savitt said. "Most importantly," he continued, "One person having control wasn't consistent with OpenAI's mission." After Musk left, Savitt said, Musk was furious that OpenAI succeeded without him: "Then he launched his own competitor. Then he launched lawsuits." Savitt said that during the trial, OpenAI's attorneys will produce evidence to show that the OpenAI nonprofit foundation remains in control of the organization and that it's doing good work. And they will argue that Musk's true interest in this suit is not OpenAI's nonprofit status. "What he cares about is Elon Musk being at the top," Savitt said. The trial is expected to last around three weeks. In addition to Musk, Altman is expected to testify, along with Brockman, Microsoft CEO Satya Nadella, and several key researchers and engineers involved in OpenAI's launch.

'Motivated by jealousy...' OpenAI lashes out at Elon in blog post claiming the billionaire 'spent years harassing OpenAI through baseless lawsuits and public attacks'

Musk has said the current lawsuit is "actually very simple. It's not okay to steal a charity." The Musk v. Altman trial is now well underway, in which businessman, entrepreneur, and the world's richest person, Elon Musk, is suing OpenAI co-founder Sam Altman and OpenAI itself. Musk has alleged that, as a co-founder of the company, he was deliberately misled in regards to OpenAI shifting the organisation away from a non-profit venture towards a for-profit model, breaking its foundational agreement. In a post to an ongoing blog by OpenAI defending the company and laying out claims against Musk, titled "The truth about Elon Musk and OpenAI", the opening statement reads: "Motivated by jealousy, regret for walking away from OpenAI and a desire to derail a competing AI company, Elon has spent years harassing OpenAI through baseless lawsuits and public attacks." "Journalists have reported on the existence of a smear campaign headed by Elon and his intermediaries, and there is also evidence⁠ that Elon coordinated with Mark Zuckerberg in repeated attempts to undermine OpenAI's mission," the post alleges. "Elon is using his lawsuit to attack the non-profit OpenAI Foundation, which is focused on work in areas such as life sciences and curing diseases for everyone's benefit." The post then goes on to list both OpenAI and the OpenAI Foundation's claimed achievements. Among them is the company's stated mission to create AGI (Artificial General Intelligence) "that benefits all of humanity", and the OpenAI Foundation's initial $25 billion financial commitment, which is said to be focussed on health breakthroughs, the curing of diseases, and "proactively tackling risks that may arise from more capable AI." Later in the text, the claims regarding Musk and OpenAI's history continue. The post alleges that OpenAI and Elon agreed in 2017 that a for-profit entity "had to be part of the next phase for OpenAI, given the large sums of money that would need to be raised." At the trial, Musk has said that he was "not opposed to there being sort of a small-for-profit to provide funding for the non-profit," according to The Guardian, "as long as it was not the tail wagging the dog." The OpenAI post claims that "Elon... demanded full control of OpenAI, and even wanted to merge it into Tesla. When we wouldn't agree to his terms, he walked away and told us we had a '0% chance' of success. He turned out to be wrong though, and a resentful Elon has attacked OpenAI ever since." The post also claims that a $38 million sum donated by Musk to the OpenAI non-profit was spent "exactly" as intended, and directly references the ongoing court case: "Despite claiming and receiving a tax deduction for this donation, he's now asking the court to treat it as an investment that entitles him to significant ownership of OpenAI," the statement claims. When Musk was asked to clarify the lawsuit as he first took the stand, he said: "It's actually very simple. It's not okay to steal a charity... if it's okay to loot a charity, the entire foundation of charitable giving will be destroyed." The tech CEO is accusing OpenAI CEO Sam Altman, president Greg Brockman, and the company's major partner, Microsoft of breach of charitable trust, and unjust enrichment. The OpenAI post concludes with a mission statement, in which the company says it remains focused on supporting the OpenAI Foundation, and continuing to improve ChatGPT. It's unclear if the purpose of the page is to provide more statements from the company in relation to the ongoing trial, but we'll be keeping an eye on it for any future developments.

Elon Musk tells court he was a "fool" for funding OpenAI

Elon Musk told a court on Wednesday that he was a "fool" for providing funding to launch ChatGPT maker OpenAI. Testifying in a case he brought against OpenAI, the billionaire founder of Tesla and SpaceX said he continued to finance OpenAI after receiving assurances from OpenAI CEO Sam Altman that the company would remain a nonprofit. However, Musk said he began to have doubts about the company's direction and said he later felt betrayed. Musk alleged in his civil lawsuit that OpenAI, Altman, and OpenAI President Greg Brockman reneged on the AI company's founding agreement by prioritizing profit over a promise to keep OpenAI as a nonprofit dedicated to human progress. The trial, playing out in the U.S. District Court for the Northern District of California, started Monday and is expected to last about four weeks. Musk contributed $38 million in funding to OpenAI from December 2015 through May 2017. The AI company is now valued at more than $85 billion. Lawyers for OpenAI reject Musk's allegations, saying that company leaders never promised it would remain a nonprofit forever. The company has argued Musk's legal challenge is aimed at undercutting OpenAI's rapid growth and bolstering Musk's xAI, which he launched in 2023 as a competitor. During cross-examination, Musk repeatedly pushed back on questions. OpenAI lawyer William Savitt asked about emails Musk wrote before OpenAI's founding in 2015, including whether it would be better to make it a standard for-profit company and whether tax deductions would apply to his donations to the nonprofit. "Your questions are not simple," Musk said. "They are designed to trick me essentially." Any simple answer, he said, would be misleading the jury. Judge Yvonne Gonzalez Rogers stepped in, asking Musk to answer whether it's true or false that OpenAI was formed as a nonprofit in December 2015. Musk said in that case, the answer was yes, but added that it is not always simple, comparing it to asking "have you stopped beating your wife?" "We are not going to go there," the judge replied, to laughs in the courtroom. Despite moments of levity, the stakes are high at the trial, which could sway the balance of power in artificial intelligence. Musk's lawsuit seeks to oust Altman from OpenAI's board. If Musk wins, it could also derail OpenAI's plans for an initial public offering. Musk's decision to stop funding the company contributed to a bitter falling out between the former allies that's been evident throughout the trial. On Wednesday, Musk said his views on Altman and his OpenAI cofounders had three phases -- from initial excitement to losing confidence to a period in late 2022 when he thought "wait a second, these guys are betraying their promise." Lawyers for OpenAI have said Musk sought to control the company for himself. Musk repeatedly testified that while he initially sought a majority stake in OpenAI and control of four out of seven board seats, this would eventually be diluted when OpenAI grew and gained more shareholders. He compared it to his stake in Tesla, which he said is now around 15% after he initially had a majority stake when the electric car maker was founded over two decades ago. OpenAI, however, claims there were no assurances that he would eventually relinquish his board majority.

Elon Musk gets combative on the stand during day two of jury trial against OpenAI

OAKLAND, Calif. -- Elon Musk fired back at OpenAI's lawyer in a tense cross-examination during the second day of the long-awaited trial that pits one tech billionaire against another. The Tesla and SpaceX owner filed a lawsuit against OpenAI CEO Sam Altman, accusing him of betraying the public by enriching himself through the AI company they founded together in 2015 as a nonprofit. "They can't have it both ways," Musk said of OpenAI on Wednesday, during his second day on the stand. "They can't have a nonprofit and free funding and the positive halo effect of being a nonprofit charity and also enrich themselves greatly." OpenAI completed a tumultuous corporate restructuring in October, shifting its capped-profit model to a more traditional for-profit structure. This for-profit arm, which continues to be overseen by a nonprofit foundation, raised $122 billion in its latest funding round that closed last month. "I formed many tech companies. I could have done so with OpenAI. I chose not to, I chose to do something that would be a charity," Musk said. "I deliberately chose to create this as a nonprofit for the public good." When his cross examination began, Musk pushed back against OpenAI's lawyer Bill Savitt, who claimed that Musk was "never committed to OpenAI being a nonprofit." "Your questions are not simple. They're designed to trick me, essentially," Musk told the lawyer. He accused Savitt of being "misleading" with his questioning when he pointed out that Musk didn't donate $100 million to OpenAI despite claiming to have done so in his earlier deposition. When asked about the $1 billion he originally promised to OpenAI, Musk began to tout the value of other things he contributed, such as his reputation. It prompted the judge to remind Musk to answer the question. Musk confirmed that he never followed through on the $1 billion commitment -- something that Altman's team pointed out in their counterclaim. Musk told Savitt that was because he "lost confidence in the team." Instead, he said he contributed a total of $38 million. The tech mogul, who left the board of OpenAI in 2018, seeks to stop the ChatGPT maker from becoming a for-profit company. He launched his own AI company, xAI, in 2023 as a for-profit company -- "because that's how I've created all my other companies," he said on the witness stand. Savitt also questioned Musk's motivations ahead of his testimony on Tuesday, accusing the tech mogul, who left the board of OpenAI in 2018, of abandoning the organization simply because he "didn't get his way." He added that Musk was dismissive of OpenAI employees focused on safety and had called them "jackasses." When asked on Wednesday about whether he ever used such language to employees, Musk responded in his testimony: "It's possible I did it on occasion." He said it would have been something like, "Don't be a jackass." "Sometimes you have to use language that gets people out of their comfort zone," Musk added. "If we're going in the wrong direction ... you have to use strong language to get them back on course." For Musk and Altman, the lawsuit is the culmination of a years-long feud that has sometimes led the two former associates to trade public barbs online. Altman was in the room Wednesday as Musk testified. Musk is demanding an estimated $134 billion in damages from OpenAI and Microsoft, one of OpenAI's top financial backers and a co-defendant in the case. He claims OpenAI benefited from his money, advice, recruiting efforts and connections. But Altman's side refutes the credit he takes, claiming that Musk never followed through on the $1 billion he'd originally promised to give OpenAI, and that he quit when Altman and fellow co-founders Greg Brockman and Ilya Sutskever refused to let Musk control the enterprise or absorb it into Tesla. "I just needed to make sure it would go in the right direction," Musk said in court on Wednesday. "We generally agreed, or I thought we agreed, that I would have initial control and very quickly I would lose majority control of the company." Musk described himself as "a fool who created free funding for them to create a startup" when he intended to create a nonprofit that nobody would own stock in.

'I literally was a fool': Musk grilled in OpenAI trial

Oakland (United States) (AFP) - Elon Musk faced fiery questioning Wednesday in his court showdown with OpenAI, as he insisted that the maker of ChatGPT had fooled him by turning what was an altruistic pursuit into a profit-making juggernaut. His second day of testimony in federal court in Oakland, California grew testy at times, as OpenAI's lawyers sought to portray the Tesla tycoon as an unreliable narrator of the company's history. Musk, who helped co-found OpenAI in 2015 with Sam Altman and other Silicon Valley figures, has called for it to be forced to revert to a pure nonprofit. He also is seeking the ouster of Altman and company president Greg Brockman. "Your questions are not simple. They're designed to trick me essentially," Musk complained to OpenAI's lead attorney William Savitt. "Mr. Musk, you're a bright guy. I'm asking you questions that mostly have a yes or no answer," Savitt shot back. The cross-examination sought to dismantle the narrative Musk had built during questioning from his own attorney. In hours of testimony, Musk -- who left the project in 2018 -- insisted he was blindsided by OpenAI's transformation into a major tech company with a for-profit arm that has made it one of the most valuable private companies in history. "I gave them $38 million of essentially free funding which they then used to create an $800 billion for-profit company. I literally was a fool," Musk told the court Wednesday, before cross-examination began. Promise broken? At the heart of the case is his accusation that OpenAI co-founder and CEO Sam Altman betrayed the company's original nonprofit mission. But on Wednesday, OpenAI's counsel used old emails to show that Musk himself, at various points, had questioned whether a nonprofit was the right model as he and the OpenAI leadership explored other corporate structures. "You didn't respond that creating a for-profit would break any promise to you, did you?" "No, as long as the for-profit is in service to the nonprofit, it is not breaking the promise." On the stand Tuesday, Musk traced his motivation to help launch OpenAI to a deep distrust of Google, which he believed did not take AI safety seriously and could not be trusted to responsibly develop such powerful technology. He told the court he backed the project on the understanding it would be a nonprofit that would put society's interests first, with any technology it developed released as open source, freely available to all. Since Musk's exit, OpenAI has become an AI superpower valued at $852 billion, buoyed by its ChatGPT chatbot, and is preparing for a high-profile IPO. Musk has since launched his own AI lab, xAI, which he merged into SpaceX in February. The rocket company is valued at $1.25 trillion, and its IPO -- expected in June -- could rank among the largest in history. Judge Yvonne Gonzalez Rogers will decide by late May whether OpenAI broke its promise to Musk. Along with seeking to force OpenAI back to a nonprofit structure and oust Altman and Brockman, Musk has sought as much as $134 billion in damages -- which he has pledged to redirect to the OpenAI nonprofit.

'Not OK to steal a charity': Elon Musk testifies in OpenAI trial

Elon Musk, Tesla's chief executive and an early co-founder of OpenAI, took the stand on Tuesday in a high-stakes trial over his dispute with former friend Sam Altman, in a case that could affect the future direction of artificial intelligence (AI). In 2024, Musk filed the lawsuit against Altman, OpenAI co-founder Greg Brockman and Microsoft over OpenAI's shift away from its original non-profit structure. "Fundamentally, I think they're going to try to make this lawsuit ... very complicated, but it's actually very simple," said Musk. "Which is that it's not OK to steal a charity." In his opening statement, Musk's lawyer, Steven Molo, said Altman and Brockman, with Microsoft's help, had taken control of a charity "whose mission was the safe, open development of artificial intelligence". Musk is seeking damages and Altman's removal from OpenAI's board. The trial started on Monday at the US District Court for the Northern District of California in Oakland, with Judge Yvonne Gonzalez Rogers and is expected to take two to three weeks. Musk was the first witness called to testify in the trial on Tuesday, with his lawyer starting off by asking about his life story. This included details about his move, at 17, from South Africa to Canada, where for a time Musk said he worked as a lumberjack among other odd jobs, then to the US. He recounted the slew of companies he founded and runs, including SpaceX, Tesla, The Boring Company, Neuralink and others. Asked how he has time for everything, Musk said he works 80 to 100 hours a week, doesn't take vacations and owns no vacation homes or yachts. Molo also asked Musk about his views on AI. Musk said he expects AI to be "smarter than any human" as soon as next year. Musk said a longstanding concern about AI is the question of what happens when computers become much smarter than humans. Comparing it to having a "very smart child," Musk said when the child grows up "you can't control that child," but you can instil values such as honesty, integrity and being good. Musk recounted his version of OpenAI's founding, which he said essentially happened because of a discussion he had with Google co-founder Larry Page, who called him a "speciesist" for elevating the survival of humanity over that of AI. The kinship between Musk and Altman was forged in 2015 when they agreed to build AI more responsibly and safely than the profit-driven companies controlled by Google's Page and Sergey Brin and Facebook founder Mark Zuckerberg, according to evidence submitted ahead of the trial. At that time, Musk said, Google had all the money, all the computers and all the talent for AI. "There was no counterbalance." Musk recalled there was discussion early on about alternative sources for funding OpenAI beyond donations, and he wasn't opposed to it having a for-profit arm, but "the tail shouldn't wag the dog." There would be a profit limit, and once artificial general intelligence, AGI, was "figured out," the for-profit would cease to exist. OpenAI has brushed off Musk's allegations as a case of sour grapes aimed at undercutting its rapid growth and bolstering Musk's own xAI, which he launched in 2023 as a competitor. In his opening statement, OpenAI lawyer William Savitt told jurors, "We are here because Mr Musk didn't get his way with OpenAI." Savitt said Musk used his promises of funding to bully OpenAI founding members and tried to take control of OpenAI and merge it with Tesla. In fact, he said Musk wanted to form a for-profit company and own more than 50% of it. There is no record, Savitt said, of promises made to Musk that OpenAI was going to remain a nonprofit forever. What Musk ultimately cared about, he said, was not OpenAI's nonprofit status but winning the AI race with Google. Musk's attorney said the case is not about Musk, but rather Altman, Brockman and Microsoft. By 2017, about two years after OpenAI's founding, it became clear that OpenAI would need more money, and Molo said the founders eventually settled on the idea of creating a for-profit arm of OpenAI that would support the nonprofit. Terms were capped for investors so they "couldn't make infinite profit." "There is nothing wrong with a nonprofit having a for-profit subsidiary, but [it] has to advance the mission," Molo said. Musk is expected to continue testifying on Wednesday. Altman is also expected to testify, along with Microsoft's chief executive, Satya Nadella. Altman, Musk, and other founders launched OpenAI in 2015 as a non-profit organisation. Musk was the biggest individual financial backer of OpenAI in the beginning, contributing more than $44 million (€38 million) to the then-startup. Musk left OpenAI's board in 2018 after clashing with Altman. A year earlier, he reportedly made a failed bid to get more control over the company.

Musk v. Altman goes to trial in Oakland

A four-week federal case over OpenAI's soul, a diary entry, $150 billion in claimed damages, and the question of whether a nonprofit can become the world's most valuable AI company. The years-long legal battle between Elon Musk and Sam Altman over the future of OpenAI moved from social media to a federal courtroom in Oakland, California on Monday, as jury selection began in the US District Court for the Northern District of California. Opening arguments are expected on Tuesday. The trial, presided over by US District Judge Yvonne Gonzalez Rogers, is scheduled to run for four weeks, through mid-May, with court held Monday through Thursday. The jury's verdict will be advisory: the ultimate decision on liability and any remedies rests with Judge Gonzalez Rogers herself. The case centres on Musk's claim that he co-founded OpenAI in 2015 alongside Altman, Greg Brockman, and others with the explicit understanding that it would remain a nonprofit organisation dedicated to developing artificial general intelligence for the benefit of humanity, and that Altman and Brockman deceived him when they converted OpenAI into a for-profit structure in 2019, thirteen months after Musk left the OpenAI board. Musk's lawsuit, filed in August 2024, alleges breach of charitable trust, fraud, and that Microsoft aided and abetted the breach. He is seeking $150 billion in damages from OpenAI and Microsoft, with proceeds directed to OpenAI's charitable arm; he is also seeking Altman's removal from both the for-profit entity and the nonprofit board, and an order requiring OpenAI to revert to nonprofit status. Judge Gonzalez Rogers accelerated the core claims to trial because she concluded there is an important public interest in their swift resolution. OpenAI's counter-narrative is pointed and supported by internal documents. The company argues that Musk was not deceived about the for-profit transition, that he was, in fact, actively involved in discussions about it, but that he wanted OpenAI merged with Tesla and wanted to lead the combined entity himself. When Altman and Brockman declined, OpenAI contends, Musk chose to leave and launch his own AI lab. The most consequential discovered document is a diary entry by Brockman, written in autumn 2017, reading: "This is the only chance we have to get out from Elon. Is he the 'glorious leader' that I would pick?" That entry will be central to both sides' case: for Musk, it evidences a conspiracy to exclude him; for OpenAI, it evidences that OpenAI's leadership had legitimate concerns about Musk's ambitions for control. The witness list is a who's-who of the AI era. Both Musk and Altman are expected to testify in person. Microsoft CEO Satya Nadella is also expected to appear, as is Shivon Zilis, a former OpenAI board member who is also the mother of four of Musk's children. OpenAI's lawyers have indicated they will argue that Zilis funnelled information about OpenAI to Musk during the period he was no longer on the board, a claim that, if established, would put the personal and corporate dimensions of the story in the same frame. Depending on how the plaintiffs sequence their witnesses, Musk could be called to the stand as early as Tuesday. The pre-trial rulings have gone significantly against Musk. He initially sought more than $100 billion in damages for himself personally; after rulings narrowed the available claims, he abandoned personal damages and now seeks the $150 billion to be paid to OpenAI's charitable arm. The judge has ruled that Musk cannot be questioned during the trial about alleged ketamine use, a ruling that limits one line of attack on his credibility, but has allowed questioning about his attendance at the 2017 Burning Man festival and about his relationship with Zilis. The trial also carries personal exposure for Musk that goes beyond the legal outcome: last month, a separate jury held him liable for defrauding investors during his $44 billion Twitter acquisition in 2022, and any damaging testimony about his business conduct in this trial will surface during SpaceX's planned IPO this summer. The stakes for OpenAI are existential in a specific sense. If Judge Gonzalez Rogers finds for Musk and orders OpenAI to unwind its for-profit conversion, the company's ability to raise capital, pursue its planned IPO at a potential $1 trillion valuation, and operate as a commercial enterprise would be directly threatened. OpenAI has nearly one billion weekly active users, is valued at $852 billion in its most recent round, and has just closed a $122 billion funding round. Microsoft holds a 27% stake in the public benefit corporation. All of that structure depends on the for-profit conversion that Musk is asking the court to reverse. The case is also, as NPR's Casey Newton observed, a clash between "two enormous personalities" whose public feud has been one of the defining dramas of the AI era, from Musk's $97.4 billion offer to buy OpenAI in February 2025 (Altman countered by offering to buy X for $9.74 billion) to their competing posts on X before the trial began. "Can't wait to start the trial," Musk posted in January.

Sam Altman tries to fend off Elon Musk's attacks on OpenAI in court battle

Altman faces off against Musk, his OpenAI co-founder, in second day of high-stakes lawsuit After a dramatic first day of opening statements and testimony from Elon Musk in his case against Sam Altman and OpenAI, the trial continues on Wednesday with a cross examination of the Tesla CEO. OpenAI's defense attorneys will get a chance to press the world's richest man on his allegations, which yesterday included suggesting Altman "stole a charity" and would endanger humanity with AI. Musk is accusing his OpenAI co-founders Altman and Greg Brockman of breaking the founding agreement of the company to build AI to benefit humanity, instead shifting the non-profit to a for-profit structure and unjustly enriching themselves along the way. He is seeking the removal of Altman and Brockman, the undoing of the for-profit structure and $134bn in damages, which he wants redistributed to OpenAI's non-profit arm. OpenAI has rejected Musk's claims as "motivated by jealousy", stating that he was always aware of plans for the business and that he left OpenAI in 2018 only after a failed bid to take over. The company holds that what Musk describes as his $38m investment into the non-profit was actually a tax deductible donation, and does not entitle him to any say over the firm. OpenAI also emphasizes that it is still overseen by the original non-profit. Musk's lawyer, Steven Molo, called him to testify on Tuesday following opening statements from both sides. The billionaire began with a rehash of his career and rise to power, before getting into his version of how OpenAI was founded in 2015. Musk claimed that the company only existed because of an alarming conversation about artificial intelligence he had with Google co-founder Larry Page, which made him believe that he needed to build a counterpoint or Page would doom humanity. With Musk on the stand, his lawyers have tried to paint him as a tech pioneer who is deeply invested in helping humanity. As Molo started his line of questioning on Wednesday, he showed Musk emails from OpenAI engineers praising him for his tech knowledge. He also showed him a document where Musk called OpenAI's safety team "jackasses" and asked him what he meant. Musk said the "jackass" statement was a joke. "I don't yell at people basically," Musk said. "You occasionally have to use strong language to get people to change their course." The trial is being extremely closely watched in Silicon Valley as it pits two of the tech industry's most powerful men against each other and promises to intensify their ongoing feud. Altman and Musk have openly sniped at each other on social media in the leadup to the trial, causing Judge Yvonne Gonzalez Rogers to request that both parties keep their posts to a minimum. Investors and other AI companies are also keeping an eye on the trial because it threatens severe consequences for OpenAI. The company is seeking to go public on the US stock market later this year at around a $1tn valuation, and any changes to its leadership or corporate structure would threaten that IPO. The trial is taking place in an Oakland, California, federal court where a nine person jury will decide on Musk's claims. If OpenAI is found liable, however, Judge Gonzalez Rogers will be the one to decide on any remedies. The trial is expected to last around three weeks.

Elon gets his day in trial against Sam Altman and OpenAI

Why it matters: A verdict against OpenAI could reshape who controls one of the most valuable private companies in the world. The big picture: Musk is asking a court to put legal limits on OpenAI's transformation from charity-backed research lab to AI superpower. * Musk said it's very simple. "It's not okay to steal a charity." Catch up quick: The case stems from Musk's 2024 lawsuit accusing OpenAI CEO Sam Altman, co-founder and president Greg Brockman, and Microsoft of betraying the company's original nonprofit mission to benefit humanity. * Musk co-founded OpenAI in 2015. OpenAI says he donated $38 million before leaving the board in 2018. * The CEO of SpaceX and Tesla now runs xAI, a direct competitor. Zoom in: Musk is seeking sweeping remedies, including changes to OpenAI's corporate structure, removal of Altman and Brockman, and damages that he has said should go back to OpenAI's nonprofit arm. * His side has put the potential damages in the hundreds of billions. The other side: OpenAI says Musk is motivated by jealousy and regret for walking away from OpenAI. * The company says Musk donated $38 million to the OpenAI nonprofit, which was "spent exactly as intended and in service of the mission." * Expect "a tale of two Elons," attorney William Savitt, representing OpenAI, Altman and Brockman, said in his opening statement. * Russell Cohen, representing Microsoft, asserted that Musk changed his tune about OpenAI's non-profit status only after the success of ChatGPT. Friction point: U.S. District Judge Yvonne Gonzalez Rogers warned Musk and Altman ahead of opening arguments to keep the fight off social media. * "Control your propensity to use social media to make things worse outside this courtroom," the judge said. * Musk alleged on X Monday that Altman and Brockman "stole a charity," accusing both of securing personal benefits while referring to Altman as "Scam." * Musk said in court on Tuesday blamed the other side. "Only after they posted very publicly about this case, only then did I respond," he said. State of play: OpenAI is also facing scrutiny outside the Musk case. * Florida Attorney General James Uthmeier launched a criminal investigation into OpenAI and ChatGPT last week after prosecutors reviewed chats involving Phoenix Ikner, the accused gunman in the 2025 Florida State University shooting. What's next: The trial is set to run roughly four weeks. OpenAI is targeting a Q4 IPO at a reported $852 billion valuation.

Musk vs Altman heads to trial in a battle that could reshape the future of AI for everyone

The lawsuit could upend the AI tools millions rely on every day * Elon Musk's lawsuit against OpenAI is now heading to trial * The trial puts OpenAI's structure and leadership under scrutiny * A Musk victory could force major changes at OpenAI and reshape how consumers encounter AI The legal fight between Elon Musk and Sam Altman is finally heading to trial, and the outcome could trigger a level of disruption at OpenAI that goes well beyond corporate drama. If Musk succeeds, the company behind some of the most widely used AI tools in the world, like ChatGPT, could be forced into a sudden and messy restructuring that touches leadership, funding, and the pace of product development all at once. Musk is asking the court to impose changes that could include unwinding parts of OpenAI and removing some leaders. For a business that operates at OpenAI's pace, even a short period of instability could cascade into delays, missed releases, and corporate collapse. The case itself centers on whether OpenAI abandoned its founding mission. Musk argues that the organization, originally conceived as a nonprofit working for the broad benefit of humanity, has drifted into a profit-driven model that breaks the law. OpenAI's defense is that the shift was necessary to compete in an industry where training advanced models requires billions of dollars and enormous computing resources. The trial will test those competing visions in public, but the more immediate question for users is what happens next. A Musk win means chaos at OpenAI A Musk victory would probably take the shape of a court-ordered overhaul of OpenAI. Leadership changes and structural adjustments could start right away, but take months to complete. Projects in mid-development could stall as decisions get rerouted, and funding might not keep pace. OpenAI customers might notice a slowdown in new features or a reduction in current services. Even the tone of the products could evolve, with a stronger emphasis on safety and openness rather than rapid expansion. It wouldn't stop there either. Regulators and other stakeholders might take a Musk win as the signal to push for similar changes across the AI industry. That could lead to a broader slowdown and more scrutiny on how AI models are built and deployed. The more optimistic result would be more transparency and a clearer focus on public benefit. But even the most positive outlook would entail turbulence after a Musk win. OpenAI winning keeps the status quo If OpenAI and Altman come out on top, the court will effectively endorse the company's existing structure. The company would be free to deepen its partnerships and invest further in the infrastructure needed to train increasingly powerful models. That outcome would also signal to the rest of the industry that the hybrid nonprofit-and-for-profit model is legally defensible and workable. Other companies could follow a similar path, But faster development and broader availability often come with more aggressive monetization and tighter control over proprietary technology. Consumers may benefit from more capable tools, but they may also find that the most advanced features remain behind paywalls or tied to specific platforms. Even in a clear OpenAI victory, the trial will leave its mark. The proceedings are expected to surface internal communications and strategic decisions that are rarely seen outside executive circles. That level of exposure can shape public perception, even if it does not alter the legal outcome. What makes this case unusual is how directly it connects corporate governance to everyday experience. The debate over nonprofit ideals versus commercial reality might sound abstract, but it ultimately determines how AI systems are funded, who controls them, and how they reach users. For now, the trial is set to play out as a high-profile clash between two of the most recognizable figures in technology. The real consequences, however, will not be measured in headlines or courtroom exchanges. They will show up in the tools people use each day and how much trust people place in them. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds. Make sure to click the Follow button! And of course you can also follow TechRadar on TikTok for news, reviews, unboxings in video form, and get regular updates from us on WhatsApp too.

Musk v. Altman Jurors 'Rose Up to the Plate,' Judge Seats Nine

Nine jurors were seated Monday in the AI industry's closely watched trial between Elon Musk and OpenAI chief Sam Altman from a pool of San Francisco Bay Area residents who are expected to hear three weeks of testimony in federal court. The jury selection process started with a pool of 40 prospective jurors that was whittled down over five hours of close questioning by US District Judge Yvonne Gonzalez Rogers and attorneys for both parties. Altman and his co-defendant, OpenAI President Greg Brockman, attended the selection process, an unusual move for well-known tech executives who rarely make courtroom appearances unless required to testify. Altman Versus Musk: How the Biggest Feud in Tech Landed in Court Though pulling a panel of jurors who promised to be fair to both Musk and Altman seemed like it would be a difficult task, only juror one said he couldn't put aside his feelings about Musk, specifically. Others said under questioning that they could isolate their personal beliefs from the trial. Gonzalez Rogers, a veteran of big-name Silicon Valley trials, dismissed that juror "for cause" but denied other requests by Musk and Altman's legal teams to strike jurors for personal biases. The judge said she was convinced the prospective jurors showed great respect for the judicial process and appeared willing to put aside their biases. "The reality is that people don't like him," Gonzalez Rogers said of Musk, noting also that many don't like Altman either. "Every one of these individuals who I questioned rose up to the plate." But outside the courtroom, tensions were higher. Musk wasn't present, but he threw jabs at Altman and Brockman on his social media platform X Monday morning: "Scam Altman and Greg Stockman stole a charity. Full stop," he wrote in one post. Musk also appeared to amplify an April 6 post from Ronan Farrow about The New Yorker reporter's lengthy investigation into Altman, by featuring it in many users' feeds on the platform. And about 25 protesters appeared outside the Oakland courthouse, some from a group called Tesla Takedown that has overseen demonstrations against Musk across the country and others from Quit GPT, the group that's been protesting at OpenAI's offices. The Monday protest targeted both Musk and Altman, with organizers titling the event "Everyone Sucks Here." 'Advisory' Verdict The jury will hear from a parade of VIP witnesses and will be asked to wade through years-old emails, text messages and corporate documents from OpenAI's founders to determine whether Altman and Brockman betrayed Musk and the company's founding principles by converting to a for-profit and taking billions in investment from Microsoft Corp. But the jury's verdict on liability will ultimately be "advisory," meaning Gonzalez Rogers will have the final say on the matter. Prospective jurors voiced mostly negative or neutral opinions about the feuding AI titans, with a number of jurors expressing special acrimony toward Musk for his work on the Trump administration's Department of Government Efficiency. The group had mixed views about AI technology. One man, an insurance underwriter and recent college graduate, said he had begun using ChatGPT instead of Google for general search inquires, and another woman, a research biologist, said she uses AI to write code and craft emails. Others said they had concerns the technology would cause mass job displacement. One nurse said AI has increased her workload because she has had to double check its work when it reviews medical records. Another man said he was worried about the current pace of AI advancement and questioned the motives of the industry broadly. Each party used their five strikes that allowed them to eliminate jurors without needing to provide a specific reason. OpenAI's attorney William Savitt told reporters outside the courthouse that he believes it's a fair jury that "will do what they're supposed to do and put any preconceptions aside." Musk's attorneys didn't comment when exiting the courthouse. The case is Musk v. Altman, 4:24-cv-04722, US District Court, Northern District of California (Oakland).

Musk vs Altman - is humanity's fate what's really at stake here or just two tech titans egos smashing into one another?

Back when I was a boy journalist, there always seemed to to a be good tech titan clash underway. Apple's Steve Jobs vs Microsoft's Bill Gates. Siebel's Tom Siebel vs Oracle's Larry Ellison. Cullinet's John Cullinane vs Oracle's Larry Ellison. Informix's Phil White vs Oracle's Larry Ellison. Actually, basically, most of the enterprise software industry vs Oracle's Larry Ellison at some point or another it seems! Few of them made it to court and back in those days there was no social media to act as an amplifying bully pulpit for any parties. The art of war back in the day was altogether a more sedate affair, albeit seemingly always with us during the Great Database Wars of the early 1990s. Flash forward to today and we've got a re-run of much of that series of conflicts, but this time pivoting around AI and being conducted on far more personal and vociferous terms, aided and abetted by the internet to fan the flames. So it is that we have this week's clash of the titans as Elon Musk takes on Sam Altman and years of pent up - and not so pent up - grievances and aggressions take center stage in a California court room as the former pursues a $150 billion claim that the latter 'stole' the charitable status of OpenAI and turned it into a naked profit engine (albeit one that has yet to actually turn a profit or appear remotely likely to do so any time soon!). Specifically Musk is suing Altman, OpenAI, OpenAI co-founder Greg Brockman, and Microsoft claiming that he was misled into donating millions of dollars to OpenAI back when it was set-up and operated as a non-profit. He wants $180 billion in damages - which he's said he will donate to charity -, block OpenAI's transition into a for-profit company, and remove Altman from the firm, something we may all recall Altman's own board of directors did at one point, before backing down days later and re-instating him. (We can expect lots of lurid insight into what went on during that tumultuous period during the course of this trial!) Stealing from a charity must be one of the most socially-unacceptable things anyone could do? Stealing an entire charitable endevor then is a whole new scale of awfulness, but that's Musk stood up in court and accused Altman of doing. Recalling the founding of OpenAI 2015 when Musk and Altman were on speaking terms, Musk testified: I came up with the idea, the name, recruited the key people, taught them everything I know, provided all the initial funding...It was specifically meant to be for a charity that did not benefit any individual person. OpenAI's attorney William Savitt challenged this version of events, claiming that they were all in court as a result of Musk feeling thwarted and having his own commercial AI interests: We're here because Mr. Musk didn't get his way at OpenAI. My clients had the nerve to go on and succeed without him...Musk never cared whether OpenAI was a not-for-profit. He never cared about AI safety. What he cared about was Elon Musk on top. But in comments that brought cries of objection from Altman's legal team, Musk went on: They're gonna make this lawsuit very complicated, but it's actually quite simple. It's not okay to steal a charity...If the verdict comes out that it's okay to loot a charity, charitable giving in America will be destroyed. Another e-mail, from 2018, sees Musk lose patience with Altman and the OpenAI team's management and direction for the company: Guys, I've had enough. Either go do something on your own or continue with OpenAI as a non-profit. I will no longer fund OpenAI until you have made a firm commitment to stay or I'm just being a fool who is essentially providing free funding for you to create a start-up. To which Altman replied that he still leant towards favoring a not-for-profit model. Musk said that the reason he'd been interested in setting up OpenAI was a result of a conversation that he'd had with Larry Page, when he'd asked the Google co-founder: What if AI wipes out all humans? Page had allegedly responded that this would be fine as long as AI survives, and accused Musk of being a 'speciesist' and favoring human beings over technology. Altman had contacted Musk after this encounter to propose setting up OpenAI to make a safe AI venture a reality. This line of questioning unfortunately then opened the door to an old Musk standard refrain that we've been hearing since around 2017 - the rise of AI as a 'Terminator' style destructive threat to humanity if left in the wrong hands, in this case Altman's. Warming up his armageddon pedling one more time, Musk told the court: I have extreme concerns over AI...[it could] solve all the diseases and make everyone prosperous, or it could kill us all...We don't want to have a 'Terminator' outcome. We want to be in a Gene Roddenberry outcome, like Star Trek, not so much a James Cameron movie like Terminator. Musk will return for a second day of testimony today (Wednesday) This is set to be a month long trial that will undoubtedly result in a lot of dirt emerging about who said what to whom over the past few years - and frankly I can't wait! Sorry, I'm only human...call me Madame Guillotine and pass me my knitting! As Musk said on X back in January Can't wait to start the trial...The discovery and testimony will blow your mind. Both Musk and Altman's reputations are in the firing line here, with the latter still reeling I'd imagine from the incendiary profile piece by Ronan Farrow in The New Yorker a few weeks back. None of that would be good news at the best of times, but with OpenAI's proposed IPO still being discussed there's a hell of a lot hanging on the outcome here from a corporate perspective, as well as from a wider AI industry point of view. I note that getting a jury sworn in for the trial was something of a tortuous process on Day One with jurors admitting to having pre-formed, often negative, impressions of both men. I have to say, it would be the easiest 'get out of jury duty' from my point of view as my own opinions of both individuals would hardly bear scrutiny when it comes to ensuring an impartial hearing. And of course, as noted above, Elon's very own in-house hate chamber has been clacking away for weeks now about the forthcoming trial. As for the man himself, he's been posting and reposting anti-Altman, anti-OpenAI X posts for the past few days, usually accompanied by 'Scam Altman' as an introduction. Judge Yvonne Gonzalez Rogers has asked all parties to refrain from airing their dirty linen in social media public and everyone has dutifully nodded and agreed to behave.

Elon Musk accuses OpenAI CEO Sam Altman of trying to 'steal' a charity - SiliconANGLE

Elon Musk accuses OpenAI CEO Sam Altman of trying to 'steal' a charity Billionaire technology entrepreneur Elon Musk took the stand today in a landmark trial that pits him against OpenAI Group PBC Chief Executive Sam Altman, with the outcome set to have a major impact on the future of artificial intelligence. "Fundamentally I think they're going to try to make this lawsuit seem complicated," Musk said as he began his testimony. "But I think it's very simple, which is, it's not okay to steal a charity." Musk helped to found OpenAI, which began life as a nonprofit organization in 2015. His co-founders included Altman and the AI firm's current President Greg Brockman. They originally shared the same vision of developing AI to benefit humanity, but things soon went pear-shaped as their goals diverged. Musk ultimately left the organization three years later, and is now accusing Altman and Brockman of sacrificing its original nonprofit goals in order to enrich themselves. OpenAI has since evolved a for-profit arm and has gone on to raise multiple billions of dollars in funding from outside investors. Thanks to its commercial operation, which owns ChatGPT, it has become one of Silicon Valley's most influential companies, and is widely regarded as one of the leaders of the AI revolution. Musk's lawsuit, which was first filed in 2024, is asking the court to remove Altman and Brockman from their roles and restore OpenAI as a full nonprofit organization. In its defense, OpenAI accused Musk of trying to kill off a competitor to his own AI firm, xAI Corp., which is the developer of a rival chatbot called Grok. "Motivated by jealousy, regret for walking away from OpenAI and a desire to derail a competing AI company, Elon has spent years harassing OpenAI through baseless lawsuits and public attacks," the company wrote on a website specifically set up to provide its side of the story. Musk was the first witness called in the trial, which is expected to last around three weeks and will likely see various other influential tech figures appear on the stand, including Altman and Brockman and also Microsoft Corp. CEO Satya Nadella. The Tesla Inc. and SpaceX Corp. CEO has attracted a lot of supporters, and dozens of members of the public - some wearing t-shirts saying "Stop AI" - were lined up outside the court early, trying to get a seat inside. The focus of the case is on the original agreements and commitments made by the cofounders shortly after the company was founded, and whether or not the creation of a for-profit arm that's now worth hundreds of billions of dollars contradicts laws governing charities. Before the trial began, Judge Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California warned Musk and Altman not to stir up any more trouble by posting on social media. She demanded that they refrain from saying anything about the trial publicly. The two entrepreneurs, who regularly bash each other on social media, agreed. Musk's lawyer Steve Molo, in his opening statement, described the billionaire as a "genius technologist" and noted that he has created several companies, including SpaceX and Tesla, that have delivered profound breakthroughs. He tried to cast Musk as a man motivated not by greed, but by a desire to improve the well-being of humanity. "I don't have any yachts," Musk said. "I like working and solving problems that make people's lives better." Elaborating on this, Musk said that SpaceX was building "life insurance for life as we know it," while Tesla was started because humanity needs to reduce its dependency on fossil fuels. With regard to AI, he said he has been worried about this technology for a long time, and believes it could be a "double-edged sword" because it has the potential to "solve all the diseases and make everyone prosperous, or it could kill us all." According to Musk, there are two outcomes for AI: a utopian, Star Trek future, or a dystopian Terminator-style world. He said he wants to help build a future that's more like Gene Roddenberry's vision rather than James Camerson's, referring to the directors of those two movies. Molo acknowledged that Musk is a "divisive figure," but he urged the jury to put any personal opinions they have of him to one side. "Like him or dislike him, you can't disagree that he is a legend in the tech world," he said. Musk was asked about the founding of OpenAI, and he responded that he was the "central figure" who helped the startup get off the ground. He said he provided the initial funding and business expertise, and also helped to convince a number of top AI researchers and engineers to join the organization. He added that Altman "wasn't very accomplished" when they first began OpenAI. "At the time very few people knew who Sam Altman was," Musk said, referring to the importance of his own contacts. "The only one who could call Satya Nadella and he would pick up the phone was me." Microsoft went on to become the first major backer of OpenAI as it began its first commercial venture in 2019, and has been named as a defendant in the lawsuit. The Windows software maker has stated in court filings that its investments in OpenAI "helped to fund one of the largest nonprofits in the world" and were "necessary for OpenAI to pursue its mission." OpenAI's chief lawyer Bill Savitt tried to paint a very different picture when cross-examining Musk, arguing that he wasn't really involved in developing the company's technology. He added that he wasn't especially knowledgeable about AI itself. "Musk hadn't been much involved in the day-to-day of OpenAI," he added. "He didn't understand artificial intelligence very well." When Altman and Brockman decided to transition OpenAI from a nonprofit to a more traditional commercial venture to secure backing from venture capitalists, Musk allegedly demanded a significant stake in the company. He wanted control over both the company and any technology it develops, Savitt insisted. Musk left the organization in 2018 after Altman and Brockman stood up to him and rejected his demands, he added. Musk countered that he left OpenAI after Altman and Brockman proposed transforming it into a for-profit organization, with equal shares for each of the cofounders. "I thought this seemed unfair and inappropriate, and that they should go and start their own company," he said. But Savitt framed Musk's departure differently, saying that "since he couldn't control OpenAI, he left it."

Elon Musk and ChatGPT's Sam Altman head to an AI trial that promises clashing testimony

Trial promises clashing testimony from two tech titans Musk, who invested about $38 million in OpenAI from December 2015 through May 2017, initially was seeking more than $100 billion in damages. But any damages now are likely to be much smaller after a series of pre-trial rulings that went against Musk. Musk has since abandoned a bid for damages for himself and instead is seeking an unspecified amount of money to be paid to fund the altruistic efforts of OpenAI's charitable arm. The money would be paid primarily by OpenAI's for-profit operations, and Microsoft, which became the company's biggest investor after Musk cut off his funding. Musk's lawsuit also seeks Altman's ouster from OpenAI's board. Musk's decision to stop funding the company contributed to a bitter falling out between the former allies. Musk says he was responding to deceptive conduct that OpenAI's board picked up on when it fired Altman as CEO in 2023 before he got his job back days later. But the trial also carries risks for Musk, who last month was held liable by another jury for defrauding investors during his $44 billion takeover of Twitter in 2022. Any damaging details about Musk and his business tactics could be particularly hurtful now because his rocket ship maker, SpaceX, plans to go public this summer in an initial public offering that could make him the world's first trillionaire. However it turns out, the trial is expected to provide riveting theater, with contrasting testimony from two of technology's most influential and polarizing figures in the 54-year-old Musk and the 41-year-old Altman. "Part of this is about whether a jury believes the people who will testify and whether they are credible," Gonzalez Rogers said during a court hearing earlier this year while explaining why she believe the case merited a trial. The judge will make the final decision on the case, with the jury serving in an advisory role. Evidence has included glimpses of the AI race's early days Musk, whose estimated fortune stands at about $780 billion, has long been hailed as a visionary for his roles creating digital payment pioneer PayPal, electric automaker Tesla and rocket ship maker SpaceX. But he has also provoked backlashes with his social media commentary, unfulfilled promises about Tesla's self-driving technology and his cost-cutting role last year in President Donald Trump's administration. Some of Musk's erratic behavior has been tied to allegations of taking hallucinogenic drugs, but Gonzalez Rogers ruled that he can't be asked during the trial about his suspected use of ketamine. But the judge is allowing Musk to be questioned about his attendance at the 2017 Burning Man festival in Nevada, a free-wheeling celebration known for widespread drug use. The judge is also allowing Musk to be questioned about his relationship with former OpenAI board member Shivon Zilis, the mother of several of his children. Altman, currently sitting on a roughly $3 billion fortune, didn't emerge in the public consciousness until the late 2022 release of ChatGPT. The tech boom triggered by that conversational chatbot has led some to liken Altman to a 21st-century version of the nuclear bomb inventor, J. Robert Oppenheimer. Although Altman was initially hailed as trailblazer he is now facing blowback amid worries about AI's potential dangers. Earlier this month, the New Yorker magazine published a profile that painted him as an unscrupulous executive. Days later, a 20-year-old man worried about AI's effect on humanity was arrested on attempted murder charges after throwing a Molotov cocktail at Altman's San Francisco home. The dueling testimonies of Altman and Musk are expected to open a window into some of the thinking that helped trigger the AI race, as well as the unraveling of their friendship. The kinship was forged in 2015 when they agreed to build AI in a more responsible and safer way than the profit-driven companies controlled by Google co-founders Larry Page and Sergey Brin and Facebook founder Mark Zuckerberg, according to evidence submitted ahead of the trial. Details of the bitter break between the two men were captured in a February 2023 email exchange that surfaced as part of the evidence leading up to the trial. After letting Musk know "you're my hero," Altman tells him: "I am tremendously thankful for everything you've done to help -- I don't think OpenAI would have happened without you -- and it really (expletive) hurts when you publicly attack OpenAI." Musk's response: "I hear you and it is certainly not my intention to be hurtful, for which I apologize, but the fate of civilization is at stake." -- Barbara Ortutay and Michael Liedtke AP Technology Writers

'He wanted to be CEO': Early OpenAI VC Vinod Khosla says Elon Musk's bid for control led to the Sam Altman feud and his major investment | Fortune

When Vinod Khosla sat down with Fortune's Editor-in-Chief Alyson Shontell in early March, he offered some key context for one of the most consequential tech trials in American history: Musk vs. Altman. "He wanted to be CEO," Khosla said of Elon Musk on the Titans and Disruptors of Industry podcast. He explained the context around how Musk and Altman fell out around the governance of a then-obscure AI lab called OpenAI. Khosla added that he "wasn't privy" to previous internal battles at OpenAI, telling Shontell to "take that with a grain of salt," but he had no doubt that Musk wanted to run the AI company. "It seems like he wanted it like a private fiefdom, with him in charge, instead of what he claims -- the public benefit company it is now. He essentially was holding the team, Sam and Greg and others hostage, and Sam had to look for other sources of money." With Altman raising funds, that led naturally to a conversation, and Khosla said his resulting investment was "the largest bet I'd placed in 40 years by a factor of two for an initial bet": $50 million at a $1 billion valuation, a bet that is now worth several hundred billion more. It was such a large investment, he revealed, that over 20 years in Khosla Ventures, "it's the only time I made an investment and sent an apology letter to my LPs, saying I'm doing it anyway, but I realized how foolhardy this looks." It turned out to be the largest initial bet Khosla Ventures had ever placed -- by a factor of two. OpenAI now counts roughly 800 million weekly active users and is valued at hundreds of billions of dollars, with its for-profit subsidiary now valued at nearly $1 trillion, with a potential IPO that could arrive as early as late 2026 -- an outcome Musk's lawsuit, if successful, could jeopardize. Roughly two months later, Musk is in a federal courtroom in Oakland, California. Trial in Musk v. Altman began with jury selection on April 27, with Musk seeking more than $130 billion in damages and demanding that CEO Sam Altman and President Greg Brockman be removed, alleging they had betrayed the nonprofit mission on which OpenAI was founded when they transformed it into a for-profit entity. Notably, Musk -- who donated roughly $38 million of OpenAI's earliest funding -- is not seeking damages for himself; he wants any award directed to OpenAI's nonprofit arm, alongside an unwinding of the for-profit conversion and the ouster of Altman and Brockman, whom he has taken to calling "Scam Altman." On the eve of trial, Musk's legal team dropped 24 of 26 original claims, including fraud, narrowing the case to unjust enrichment and breach of charitable trust. OpenAI has called the lawsuit a "harassment campaign" and argues that Musk, not Altman, sought to bend the company to his will. That defense thesis was, in effect, previewed by Khosla in his March interview. "He essentially was holding the team -- Sam and Greg and others -- hostage, and Sam had to look for other sources of money," Khosla told Fortune. "There was no other source." Legal experts say Musk faces an uphill climb. Sam Brunson, a nonprofit law professor at Loyola University Chicago, told Fortune that as a general rule, a donor who dislikes how a charity later spends its money has no recourse beyond ceasing to donate. The exception is fraud -- proving the donor was lied to at the moment of the gift -- which is why Musk has spent two years building that argument. His most damaging exhibit comes from Brockman's personal notes, which Musk's team has dubbed a "diary." In a September 2017 entry quoted by Judge Yvonne Gonzalez Rogers in her January order sending the case to trial, Brockman wrote: "This is the only chance we have to get out from Elon ... Financially, what will take me to $1B?" After a November 2017 meeting in which he and Altman assured Musk that OpenAI would remain a nonprofit, Brockman acknowledged in writing that Musk's "story will correctly be that we weren't honest with him in the end about still wanting to do the for-profit just without him." Still, Brunson cautions that the framing may not map onto nonprofit law: OpenAI's nonprofit still exists and retains the upside from the for-profit subsidiary, and absent an explicit promise never to create such a subsidiary, the fraud theory is hard to sustain. Khosla's reasoning in making the bet was less financial than geopolitical. Google had formidable AI capabilities, but Baidu had established a facility near Google's Mountain View campus and was actively recruiting engineers to build Chinese AI. "I thought there needed to be another AI effort in the West," he told Shontell. "I don't wish China ill. I just don't want them to dominate us with their AI." As for Musk -- whose own AI venture, xAI, now competes directly with OpenAI -- Khosla was careful in March to separate the entrepreneur from the exit. "It's hard to bet against Elon, because he's such a good entrepreneur," he said, crediting Musk with pioneering electric vehicles and private space. "Having said that, he had committed a billion dollars to OpenAI, and then he reneged because he wanted to be in control, as far as I can tell." The trial is expected to run for four weeks, with Musk, Altman, Brockman, and Microsoft CEO Satya Nadella all on the witness list. Whatever the jury decides -- its verdict will be advisory, with Judge Yvonne Gonzalez Rogers issuing the final ruling -- Khosla's March account offers a striking preview of the central factual dispute the court must now resolve: not just what Musk did, but why he left. And, as Brunson noted, the suit may never reach a verdict at all: "If Elon Musk is concerned about his reputation, maybe that encourages him to settle instead of going all the way through trial." The bet that almost didn't happen, born out of a billionaire's failed bid for control, may prove to be a defining investment of the AI era.

Elon Musk's trial against Sam Altman to reveal the ongoing power struggle for OpenAI

April 27 (Reuters) - The bitter legal fight between Elon Musk and the leading artificial intelligence firm, OpenAI, led by Sam Altman, may come down to a few pages in one executive's personal diary. "This is the only chance we have to get out from Elon," wrote, opens new tab Greg Brockman, OpenAI's president and a co-founder, in the fall of 2017. "Is he the 'glorious leader' that I would pick?" Brockman's diary entry is part of the thousands of pages of internal documents revealed in court since Musk, one of the original co-founders of OpenAI, sued the company, its chief executive Altman and Brockman in 2024. Musk is seeking $150 billion in damages from OpenAI and Microsoft (MSFT.O), opens new tab, one of its largest investors, according to a person involved in the case, with proceeds going to OpenAI's charitable arm. Jury selection for the trial is planned for Monday in the Oakland, California, federal court, with opening arguments expected on Tuesday. The documents offer a rare window into egos and personalities that have shaped OpenAI as it evolved from a nonprofit research lab in Brockman's apartment to a tech giant worth more than $850 billion. They also shed light on how the CEOs with the most power to shape generative AI think about the technology. The trial risks complicating OpenAI's plans for a potential initial public offering by casting doubt on its leadership. A drumbeat of ⁠unflattering disclosures could also intensify Americans' growing pessimism about AI technology more broadly. The case centers on Musk's claim that OpenAI, Altman and Microsoft betrayed OpenAI's original mission as a nonprofit to benefit humanity, opens new tab by forming a for-profit entity in March 2019, 13 months after Musk left the OpenAI board. Musk said the defendants kept him in the dark about their plans, exploited his name and financial support to create a "wealth machine" for themselves, and owe damages for having conned him and the public. He also wants OpenAI to revert to a nonprofit, opens new tab, for Altman and Brockman to be removed as officers, and for Altman to be removed from its board, among other measures. OpenAI's lawyers counter that Musk is motivated by a compulsion to control OpenAI and prop up his own AI lab xAI, which he founded in 2023 shortly after OpenAI launched ChatGPT and sparked the AI boom. The company says Musk was involved in discussions to create OpenAI's new structure and demanded to be CEO, opens new tab. Microsoft, also a defendant, denies that it colluded with OpenAI and says it teamed up with OpenAI only after Musk left. HEAVY HITTERS EXPECTED TO TESTIFY Heavy hitters in Silicon Valley including Musk, Altman and Microsoft CEO Satya Nadella are expected to testify in person. Shivon Zilis, a former OpenAI board member who is also mother to four, opens new tab of Musk's children, is likely to be a key witness, with OpenAI lawyers arguing that she funneled information about OpenAI to Musk. The ⁠trial comes at a sensitive time for both sides. OpenAI faces unprecedented competition from rivals including Anthropic, and is spending billions on computational resources. It is also preparing for a potential blockbuster IPO that could value the company at $1 trillion, Reuters has reported. Musk's companies face similar pressures. His xAI, now folded into his rocket company SpaceX, trails far behind OpenAI in usage. SpaceX also plans to go public this year in what could be the biggest IPO ever. According to court papers, Musk gave about $38 million of seed money to OpenAI between 2016 and 2020, mostly before he left the board. In 2019, OpenAI restructured as a for-profit unit governed by the nonprofit. That let it accept money from outside investors while being accountable for the nonprofit's original mission. Last fall, OpenAI overhauled its structure ⁠again to become a public benefit corporation, in which the nonprofit and other investors including Microsoft hold stakes. The nonprofit holds a 26% stake as well as additional warrants if OpenAI hits certain valuation targets. Musk's lawyers calculated damages by multiplying OpenAI's valuation and a portion of the nonprofit's stake that could be attributed to Musk's contributions. His team says between 50% and 75% of the nonprofit's stake can be attributed to Musk. A 'MANHATTAN PROJECT FOR AI' Musk and Altman co-founded OpenAI with a goal of developing AI ⁠to benefit humanity and fend off rivals such as Google (GOOGL.O), opens new tab. Altman approached Musk about the idea in May 2015, branding it the "Manhattan Project for AI," court documents, opens new tab show. Musk's involvement helped OpenAI land top researchers, opens new tab like now-former chief scientist Ilya Sutskever., opens new tab By mid-2017, Musk began questioning OpenAI's viability, at one point holding back, opens new tab promised funds, opens new tab after clashing with Altman, Brockman and Sutskever, according to court filings, opens new tab. One source of tension was that Musk wanted to be CEO, emails show, opens new tab, which made other co-founders uneasy. Around the same time, ⁠Brockman appeared frustrated by Musk's stance, and wondered if turning OpenAI into a profit-making venture could also make him rich. "Financially, what will take me to $1B?" he wrote, opens new tab in his diary. "Accepting Elon's terms nukes two things: our ability to choose (though maybe we could overrule him) and the economics." Musk's lawyers highlighted the entry to show that OpenAI's leaders were more motivated by profit than the mission. By January 2018, Musk appeared to have given up. "OpenAI is on a path of certain failure relative to Google," Musk emailed, opens new tab. In late 2022, OpenAI launched ChatGPT. Reporting by Deepa Seetharaman in San Francisco and Jonathan Stempel in New York; Editing by Ken Li, Noeleen Walder and Nick Zieminski Our Standards: The Thomson Reuters Trust Principles., opens new tab

Jury selection kicks off in Musk v. Altman trial

Judge Yvonne Gonzalez Rogers is overseeing the proceedings, starting Monday, between the world's richest person and the CEO of OpenAI. Nine jurors will be seated and there will be no alternates, according to a March filing. CNBC is in the courtroom for the proceedings. Musk, who co-founded OpenAI in 2015, sued the company, Altman and Greg Brockman, OpenAI's president, in 2024, alleging they reneged on their commitments to keep the artificial intelligence lab a nonprofit and follow its charitable mission. OpenAI has repeatedly dismissed Musk's lawsuit as "baseless." Musk left OpenAI's board in 2018, and five years later started xAI as a rival, merging that company with SpaceX earlier this year. Musk has sought a number of different remedies over the course of the case, including the removal of Altman and Brockman from their roles at OpenAI. Musk's lawyers said in January that he should receive up to $134 billion in "wrongful gains," though he has since asked to funnel those funds back into the OpenAI charity.

Elon Musk says OpenAI is 'looting a charity' in court testimony

TL;DR: Elon Musk testified that OpenAI shifted from its original nonprofit mission to a profit-driven model, accusing it of exploiting its position and engaging in anti-competitive practices. His AI company xAI's lawsuits highlight concerns over OpenAI's market dominance and partnerships, intensifying the legal battle and regulatory implications. Elon Musk has taken the stand in the escalating legal battle surrounding OpenAI, accusing the company of straying from its original mission and effectively "looting a charity." Testifying in court, Musk kept to his long-standing argument that OpenAI was founded as a nonprofit focused on benefiting humanity, but, as it grew and he left as one of the founders, it has since shifted toward a profit-driven model that prioritizes commercial success. His comments come as part of a broader legal dispute tied to his AI company xAI, which has already filed lawsuits alleging anti-competitive behavior and misuse of trade secrets involving OpenAI and its partners. The testimony adds fuel to an ongoing and heated conflict between Musk and OpenAI leadership, specifically CEO Sam Altman. Musk has repeatedly criticized the company's transformation into a capped-profit structure and its deep ties with major tech players like Microsoft, using both as examples of how OpenAI has strayed from its original mission statement. This aligns with previous legal filings by xAI, in which Musk's company claims OpenAI has leveraged its position to unfairly dominate the AI market, including through high-profile integrations and exclusive partnerships. With Musk now publicly testifying under oath, the stakes have shifted, and it's likely the outcome of this trial will mark an important milestone in the development of regulations for AI companies. In other recent big news, Take-Two Interactive's CEO Strauss Zelnick has teased when the marketing for Grand Theft Auto 6 will begin ahead of its release scheduled for November this year. For more on that story, check out the link down below.

Musk and Altman show up for opening statements in trial that could reshape AI's future

OAKLAND, Calif. (AP) -- OpenAI co-founders Elon Musk and Sam Altman have shown up for Tuesday's opening statements in a high-stakes trial revolving around a bitter feud between the former friends that could reshape the future development of artificial intelligence. The bickering billionaires' early-morning appearances at the Oakland, California, federal courthouse foreshadow the start of a legal drama that is expected to brim with intrigue and potentially embarrassing details about the two tech moguls. The jury was elected Monday and the trial is scheduled to take three weeks. After the lawyers provide an overview of their respective cases, testimony will begin presenting Musk's side of a tale chock full of alleged betrayal, deceit and ambition that caused OpenAI to pivot from its founding mission as an altruistic startup to a capitalistic venture now valued at $852 billion. Musk, the world's richest person with an estimated fortune of $778 billion, is among the witnesses who will testify during the trial. His presence on Tuesday may mean that he will be among the first people to take the witness stand. Altman, OpenAI's CEO, is also expected to testify at the trial, along with Microsoft CEO Satya Nadella, one of the technology leaders who helped fund the late 2022 release of ChatGPT, the chatbot that unleashed the current AI boom that has propelled the stock market to record heights.

'Crazy and nasty': Secrets revealed in Musk v Altman court war

Hundreds of court filings reveal cringeworthy texts and emails between the two tech titans and other billionaires as a lawsuit over OpenAI is finally about to start. Tesla chief executive Elon Musk and Sam Altman, CEO of ChatGPT-maker OpenAI, are scheduled to face off in court next week in a case brought by Musk that claims Altman and others enriched themselves by allegedly betraying the artificial intelligence company's founding mission. The bitter legal feud between the two tech titans is prying open the industry's most powerful circles by spilling the tea of Silicon Valley VIPs.

Musk vs. Altman: Tech CEOs head to court Monday over fate of OpenAI

Two titans of the tech world will face off in court starting on Monday. Elon Musk, of Tesla and SpaceX, is suing Sam Altman, the CEO of OpenAI, in a high-stakes clash between former partners over the future of one of the world's most influential AI companies. Musk alleges he was duped when Altman transformed OpenAI from a non-profit entity into a for-profit juggernaut. Thanks to the viral success of ChatGPT, the company now has a valuation approaching $1 trillion and is angling for a stock listing. "This is a clash of two enormous personalities in Elon Musk and Sam Altman," said Casey Newton, a long-time tech journalist and founder of the tech newsletter Platformer. "And I think what is at stake is potentially the future of OpenAI and the future development of all AI." OpenAI was established in 2015 by Musk, Altman and a handful of others as a charity that aimed to create artificial intelligence "to benefit humanity," free from the pressures of shareholders and profit considerations. But according to statements OpenAI has posted online, the founders concluded early on that in order to raise enough money to access the computing power and chips necessary to build world-class AI, they had to attract investors with deep pockets -- and the best way to do that was by creating a for-profit company. Analysts say Altman and Musk tussled over who would lead the company, and Musk lost. He left OpenAI's board in 2018; the company cited potential future conflicts with Tesla. In 2023, Musk launched his own AI company, called xAI. In the lawsuit that kicks off on Monday, Musk contends that Altman and others running OpenAI broke the law when the company morphed into a for-profit concern. (Technically, the for-profit company, established in 2019, is a subsidiary of the non-profit OpenAI Foundation, but it eclipses the charity.) "The perfidy and deceit are of Shakespearean proportions," Musk's lawyers wrote in a court filing, adding that Altman had been engaged in a "long con." OpenAI contends that Musk was well aware that the company needed to become a for-profit, and was part of discussions about it. Now, Musk is asking for billions of dollars made by the for-profit business to be "disgorged" from Altman and others -- equity and money that was made on the back of what Musk argues was an illegal corporate conversion. Musk wants the court to order those gains to be returned to the part of OpenAI that's still not-for-profit. Musk's filings also indicate that he will seek an order "unwinding the for-profit conversion... [and] restoring OpenAI to the role of a bona fide public charity." He is also seeking the ouster of Altman from OpenAI's for-profit leadership and non-profit board. Musk was the biggest individual financial backer of OpenAI early on, contributing more than $44 million to the startup, according to court documents. Analysts say that money was crucial in getting the operation off the ground. OpenAI's profile has soared since ChatGPT went live four years after Musk left. In court documents, OpenAI says it has nearly 1 billion weekly active users and is worth $852 billion. OpenAI recently closed a $122 billion funding round and The Wall Street Journal reported that it is planning an initial public offering, potentially later this year. The company declined to comment on reports of stock listing plans, and lawyers for OpenAI and Musk declined to comment about the lawsuit. Analysts say the case is layered. "I think there's a fundamental question about the extent to which corporations can change, can adjust to circumstances, can reinvent themselves," said Jill Fisch, a professor of business law at the University of Pennsylvania Law School. "I think it's reasonable to ask the question: When you invest in something that says, look, we're going to be run in a certain socially responsible way, and whoever's running the company decides, no, that's not working, we've got to pivot, are there limits on their ability to do that?" she asked. "This is part business case and part ego," said Alex Kantrowitz, a tech observer and host of the Big Technology podcast. He points out that Musk is asking the court to restore gains to the charity, not to himself. "For Elon, pride matters more than money here," said Kantrowitz. If Musk wins and the court agrees with his proposed remedies, it would radically alter the structure of one of the top AI companies in the world -- and Platformer's Newton says that could affect the artificial intelligence industry writ large. "My understanding is that the thrust of it is to try to stop OpenAI in its tracks," he said. "Prevent them from developing future models and essentially knock one player out of the A.I. race." The case is being tried in the United States District Court for the Northern District of California in Oakland, with Judge Yvonne Gonzalez Rogers presiding. Jury selection takes place on Monday, and opening arguments are expected to begin on Tuesday. Both Musk and Altman are expected to testify.

Even without OpenAI, Elon Musk has made A.I. a big part of his business empire.

Mr. Musk, the world's richest person who helped found OpenAI in 2015, pushed his case that the founders of the artificial intelligence company always intended for it to be a nonprofit. "I was a fool who provided them free funding to create a start-up," he said. "I gave them $38 million of essentially free funding to create what would become an $800 billion company." Mr. Musk, under cross-examination from an OpenAI lawyer, has grown combative, drawing an interruption from Judge Yvonne Gonzalez Rogers. "The classic answer to a yes-or-no question is not so simple," Mr. Musk said. "For example, if you ask the question, 'Will you stop beating your wife?'" Judge Gonzalez Rogers cut him off, saying, "No, we're not going to go there." In his questioning, OpenAI's lead counsel, William Savitt, has aimed to show that before leaving OpenAI, Mr. Musk was interested in turning the lab into a for-profit company. He has tried to paint a picture of Mr. Musk as someone who wants to wield outsized influence over his companies to have complete control, a point made to undercut Mr. Musk's continuous assertions that no one individual should be in control of OpenAI and certainly not in control of artificial intelligence. Mr. Musk left the start-up three years later after a power struggle with his co-founders. The public launch of ChatGPT catapulted OpenAI to commercial success in 2022. Mr. Musk is seeking more than $150 billion in damages from OpenAI and Microsoft, OpenAI's biggest financial partner. He is also asking the court to remove OpenAI's co-founder and chief executive, Sam Altman, from the board, and to stop its recent shift to operate as a for-profit company. OpenAI's lead counsel, William Savitt, argued on Tuesday that Mr. Musk filed the lawsuit because he "didn't get his way at OpenAI." The start-up's original nonprofit continues to oversee the for-profit company, and is working to redistribute billions of dollars generated by the commercial operation, he added. The trial's outcome could upend the A.I. landscape. OpenAI is a leading A.I. company. A win for Mr. Musk would also be a win for OpenAI's competitors, from industry giants like Google to young companies like Anthropic and Mr. Musk's own A.I. lab, xAI. A loss for Mr. Musk would mean that OpenAI, which is now valued at about $730 billion, will be free to continue its commercial course just as it appears to be heading toward one of the biggest initial public offerings in history. (The New York Times has sued OpenAI and Microsoft, claiming copyright infringement of news content related to A.I. systems. The two companies have denied the suit's claims.)

The Elon Musk vs. Sam Altman trial didn't even make it past jury selection before Musk started getting clowned on

Opening arguments began on Tuesday in the case of Musk v. Altman, the Tesla CEO's lawsuit against Sam Altman and OpenAI for, in the attorney's words, "preying on Musk's humanitarian concern about the existential dangers posed by artificial intelligence" in what is "a textbook tale of altruism versus greed." Musk is the good guy in this framing, of course, though based on Monday's jury selection process I have a feeling that Musk's lawyers may struggle to make that case. "Elon Musk is a greedy, racist, homophobic piece of garbage," said one prospective juror, as quoted by The Verge reporter Elizabeth Lopatto from the San Francisco courthouse Monday. Another was less harsh: they merely called Musk "a world-class jerk." After the jury voir dire process was halfway through, Lopatto reported that out of the first 20 prospective jurors, five had such negative feelings about Elon that they said as much, though only one of them said they disliked him so much they couldn't be fair were they to serve on the jury -- surely one of the easiest jury outs of all time. "Elon Musk's lawyer tried to get some jurors thrown out for disliking Musk," Lopatto reported as voir dire wound down. But -- and this is the really good part -- the judge wasn't having it. "The reality is that people don't like him. Many people don't like him," said Judge Yvonne Gonzales Rogers, in what may be the closest an on the record courtroom exchange has come to re-enacting the Star Wars cantina scene. Fulfilling her solemn responsibility as a judge, Rogers did not follow up with 'I don't like him either' but instead said that the reality of some jurors disliking Musk "doesn't mean that Americans nevertheless can't have integrity for the judicial process." The thrust of Musk's case is that he lent his time, effort and money to OpenAI under the assurance that it would remain a nonprofit, but that he "and the non-profit's namesake objective were betrayed by Altman and his accomplices" when OpenAI spun up its for-profit efforts and the billions started rolling in. In Tuesday's opening arguments, OpenAI's lead counsel William Savitt claimed that the case only existed "because Mr. Musk didn't get his way at OpenAI" and that he'd tried to turn OpenAI into a for-profit business himself, in 2017, with him in charge. The founders "didn't want to be part of a car company that Musk controlled," Savitt said. That sequence of events seemingly lines up with previous reports about the power struggle between Musk and Altman. Musk is set to take the stand in Tuesday's trial, but we're likely months away from a substantial resolution. While the end result will likely be a "whoever wins, we lose" situation for society, we'll hopefully get at least a few more anecdotes out of the trial that are personally embarrassing for all the billionaires involved.

Elon Musk takes stand in trial vs. Sam Altman that could reshape AI's future

Elon Musk, the Tesla CEO, world's richest man and OpenAI cofounder, took the stand Tuesday in a high-stakes trial revolving around a bitter feud between himself and former friends Sam Altman and Greg Brockman that could reshape the future development of artificial intelligence. The bickering billionaires' appearances at the Oakland, California, federal courthouse foreshadow the start of a legal drama that is expected to brim with intrigue and potentially embarrassing details about the two tech moguls. Musk filed the lawsuit against Altman and Brockman along with Microsoft over its investments in OpenAI, in 2024. "Fundamentally, I think they're going to try to make this lawsuit...very complicated, but it's actually very simple," Musk said. "Which is that it's not OK to steal a charity." The jury was selected Monday and the trial is scheduled to take three weeks. Opening statements began with Musk's attorney, Steven Molo, who quoted OpenAI's mission statement when it was created as a nonprofit for the benefit of humanity as a whole and not constrained by the need to generate financial enrichment for anyone. Altman and his top lieutenant Brockman, aided by Microsoft, "stole a charity," Molo said, "a charity whose mission was the safe, open development of artificial intelligence." In the civil lawsuit, Musk accuses Altman and Brockman of double-crossing him by straying from the San Francisco company's founding mission to be a steward of a revolutionary technology. He is seeking damages and to fund the altruistic efforts of OpenAI's charitable arm and Altman's ouster from OpenAI's board. OpenAI has brushed off Musk's allegations as an unfounded case of sour grapes that's aimed at undercutting its rapid growth and bolstering Musk's own xAI, which he launched in 2023 as a competitor. In his opening statement, OpenAI lawyer William Savitt told jurors "we are here because Mr. Musk didn't get his way with OpenAI." Savitt said Musk used his promises to provide funding to bully OpenAI founding members and tried to take control of OpenAI and merge it with Tesla. In fact, he said Musk wanted to form a for-profit company and own more than 50% of it. In the middle of discussions about OpenAI's future, he added, Musk pulled the plug on $5 million quarterly donations he was making. There is no record, Savitt said, of promises made to Musk that OpenAI was going to remain a nonprofit forever, or open-source everything. What Musk ultimately cared about, he said, was not OpenAI's nonprofit status but winning the AI race with Google. Molo said the case is not about Musk, but rather Altman, Brockman and Microsoft. By 2017, about two years after OpenAI's founding, it became clear that OpenAI would need more money, and Molo said the founders eventually settled on the idea of creating a for-profit arm of OpenAI that would support the nonprofit. Terms were capped for investors so they "couldn't make infinite profit." "There is nothing wrong with a nonprofit having a for-profit subsidiary, but (it) has to advance the mission," Molo said. Microsoft initially invested $2 billion in OpenAI. Then, in 2022, news spread that OpenAI had done a deal with Microsoft and "this was a horse of a completely different color," he said. It was a "gamechanger," Molo said, that violated "every commitment" OpenAI made not just to Musk but to the world. It was no longer open source, it became a for-profit company for the benefit of the defendants and Microsoft was going to have control, through licensing, of much of its intellectual property, Molo said. After opening arguments wrap up, testimony will begin with Musk's side presenting a tale chock full of alleged betrayal, deceit and ambition that caused OpenAI to pivot from its founding mission as an altruistic startup to a capitalistic venture now valued at $852 billion. Musk, the world's richest person with an estimated fortune of $778 billion, is among the witnesses who will testify during the trial. Altman, OpenAI's CEO, is also expected to testify, along with Microsoft CEO Satya Nadella, one of the technology leaders who helped fund the late 2022 release of ChatGPT, the chatbot that unleashed the current AI boom that has propelled the stock market to record heights. Altman's court appearance likely made him unavailable to attend an Amazon event across San Francisco Bay on Tuesday at which both companies announced an expanded partnership. "I wish I could be there with you in person today," Altman told attendees of Amazon's event in San Francisco via a prerecorded video message. "My schedule got taken away from me today."

Elon Musk expected to testify in OpenAI trial

OAKLAND, California -- Elon Musk is set to testify in court as soon as Tuesday in his legal showdown against Sam Altman. The outcome of the trial could determine the future of OpenAI, the tech giant that the two billionaires cofounded as a nonprofit in 2015. Musk, who left the board of OpenAI in 2018, seeks to stop the ChatGPT maker from becoming a for-profit company -- having publicly accused OpenAI of becoming a "closed source, profit-maximizer." "Without Elon Musk there would be no OpenAI, pure and simple," Steven Molo, Musk's lawyer, told the court in his opening argument on Tuesday. Jury selection wrapped up on Monday for a trial scheduled to run for four weeks. Witnesses are expected to include not only Musk, the CEO of xAI, Tesla and SpaceX, and Altman, the CEO of OpenAI, but possibly also Microsoft CEO Satya Nadella, top AI researchers, and current and former OpenAI board members. OpenAI completed its restructuring in October. Its reimagined for-profit entity, which continues to be controlled by a nonprofit foundation, removed its profit cap and later raised $122 billion in its latest funding round. Musk, in his lawsuit against Altman, has claimed that OpenAI's transformation "requires lying to donors, lying to members, lying to markets, lying to regulators, and lying to the public." Musk, who claims OpenAI benefited from his money, advice, recruiting efforts and connections, is now seeking an estimated $134 billion in damages. Altman's side, meanwhile, has claimed that Musk never gave OpenAI the $1 billion he'd promised, alleging that Musk quit when Altman and fellow cofounders Greg Brockman and Ilya Sutskever refused to "bow to Musk's demands for control of the enterprise or, alternatively, its absorption into Musk's electric car company, Tesla." "ChatGPT drew a new spotlight onto OpenAI," Altman's lawyers wrote in a counterclaim, citing the 2022 explosion of generative AI that was driven by the launch of ChatGPT. "Musk had nothing to do with it." The lawsuit is the culmination of Musk's longstanding feud with Altman, which had been simmering even before they became rival tech executives in the AI space. Both were in the courtroom for the first day of arguments on Tuesday. The trial is taking place just across San Francisco Bay from OpenAI's headquarters.

Musk faces off with OpenAI in court over broken promises

Oakland (United States) (AFP) - Elon Musk showed up for opening remarks Tuesday in a courtroom showdown with OpenAI over whether the artificial intelligence company betrayed its non-profit mission. The legal clash across the bay from San Francisco pits the world's richest person against a startup Musk once backed and now competes with in the booming AI sector. Musk appeared at the federal court in Oakland, seen passing through metal detectors, ahead of opening arguments for a trial that could have far-reaching consequences for the future of the AI industry if the Tesla tycoon prevails. OpenAI's chief executive, Sam Altman -- once a Musk partner and now widely seen as his nemesis -- was also seen entering the building. The ChatGPT-maker is a formidable rival to the chatbot Grok, made by Musk's xAI lab. OpenAI co-founders Sam Altman and Greg Brockman "are confident in their position and look forward to the facts being known," their attorney, William Savitt, said outside the courthouse after jurors were selected Monday. While Musk's lawsuit is part of a feud between him and Altman, it spotlights a debate over whether AI should ultimately serve to benefit a privileged few or society as a whole. Court filings lay out how Altman convinced Musk to back OpenAI in 2015, acting as a co-founder for a non-profit lab whose technology "would belong to the world." Musk pumped millions of dollars into the group, which he subsequently left. OpenAI established a commercial subsidiary as it needed hundreds of billions of dollars for data centers to power its technology. Musk argues in his lawsuit that he was deceived about OpenAI's mission being altruistic. He is expected to testify in the trial, possibly as early as Tuesday. OpenAI slams 'harassment campaign' In a social media post on Monday, Musk derisively called the OpenAI chief "Scam Altman." San Francisco-based OpenAI has countered in court filings that its break-up with Musk was due to the Tesla tycoon's quest for absolute control rather than its nonprofit status. "His lawsuit remains nothing more than a harassment campaign that's driven by ego, jealousy and a desire to slow down a competitor," OpenAI said of Musk in a recent X post. The judge presiding over the trial will decide by late May -- guided by an advisory jury's findings -- whether OpenAI broke a promise to Musk in a drive to lead in AI or just smartly rode the technology to glory. Along with calling for OpenAI to be forced to revert to a pure nonprofit, Musk's suit urges the ouster of co-founders Altman and Brockman, who is the startup's president. Musk, who had sought as much as $134 billion in damages, has since renounced any personal benefit, pledging to redirect any award to the OpenAI nonprofit. Judge Yvonne Gonzalez Rogers has reserved the right to determine any remedies herself, without the jury's input. OpenAI now has a hybrid governance structure giving its nonprofit foundation control over a for-profit arm.

Why Elon Musk and Sam Altman are going to trial over OpenAI

The trial will see Elon Musk face off against OpenAI CEO Sam Altman over allegations that the AI company abandoned its nonprofit roots in favour of profit -- with Microsoft also named in the suit. Technology titans Elon Musk and Sam Altman will face off in a high-stakes trial on Monday in the culmination of a years-long battle. Billionaire Musk, an early investor in the artificial intelligence company, is suing OpenAI's CEO, Altman, its president Greg Brockman, and Microsoft for allegedly betraying an agreement about keeping OpenAI as a nonprofit that benefits humanity. Musk alleges he was misled when Altman transformed the company from a nonprofit into a for-profit enterprise. The company now has a valuation of almost $1 trillion and is expected to go public. Here's everything to know about the trial. The trial will happen at the US District Court for the Northern District of California in Oakland, with Judge Yvonne Gonzalez Rogers. The court hearing begins on Monday and is expected to last around two to three weeks. The witness stand is expected to gather Musk, Altman, and Microsoft CEO Satya Nadella. What does Musk allege? Altman, Musk, and other founders launched OpenAI in 2015 as a non-profit organisation. Musk was the biggest individual financial backer of OpenAI in the beginning, contributing more than $44 million to the then-startup. Musk left OpenAI's board in 2018 after clashing with Altman. A year earlier, he reportedly made a failed bid to get more control over the company. In 2022, OpenAI launched ChatGPT and grew to become one of the most valuable and important AI companies with major investment from Microsoft. Then in 2025, OpenAI restructured its main business to become a for-profit company. Musk's lawsuit was filed in 2024 and claims OpenAI had breached an agreement to make breakthroughs in AI "freely available to the public" by forming a multibillion-dollar alliance with Microsoft, which invested $13 billion (€12 billion) into the company. "OpenAI, Inc has been transformed into a closed-source de facto subsidiary of the largest technology company in the world: Microsoft," Musk's lawsuit alleges. The Tesla boss, who also has his own generative AI company xAI, says this constitutes a breach of a contract. What does OpenAI say? OpenAI released a trove of emails in 2024 that show Musk supported its plans to create a for-profit company, which he wanted to be the head of, have board control, and merge it with Tesla. OpenAI has always denied Musk's allegations, saying that he agreed in 2017 that establishing a for-profit entity would be necessary.

Opening arguments begin in Elon Musk and Sam Altman courtroom showdown

Trial is culmination of a years-long feud between Musk and Altman that has become increasingly vicious The trial pitting Elon Musk against Sam Altman and OpenAI began in earnest on Tuesday with opening arguments, as lawyers for the two tech moguls seek to convince a California jury of their client's version of the AI company's history. The trial is set to feature testimony from both billionaires, as well as some of the most powerful executives in the tech industry. Musk argues that Altman, OpenAI and its president Greg Brockman broke a foundational agreement to better humanity when the non-profit pivoted towards a for-profit structure. Musk, who left OpenAI in 2018 after co-founding it with Altman and Brockman three years earlier, also alleges that his co-founders unjustly enriched themselves as the company raised billions of dollars and grew into the AI behemoth it is today. OpenAI rejects all of Musk's claims, stating his case is "motivated by jealousy" and characterizing him as an embittered co-founder seeking revenge after failing to take total control. OpenAI has also pointed out Musk started his own rival AI company, xAI, alleging that "this lawsuit has always been a baseless and jealous bid to derail a competitor". In the early hours of Tuesday morning, long lines snaked outside the Oakland federal courthouse as reporters, legal teams and court watchers waited to get inside. Altman and Brockman were present at the courthouse on Monday, while Musk was nowhere to be seen. The two tech leaders passed through security around 15 minutes apart on Tuesday morning. The trial is a culmination of a years-long feud between Musk and Altman that has become increasingly vicious. As the trial started jury selection on Monday, Musk posted a stream of insults against Altman on X, the social media platform Musk owns, including repeatedly calling him "Scam Altman". Musk also used his power over the platform to boost a post to followers that featured the New Yorker's unflattering investigation of Altman from earlier this month. The outcome of the case carries potentially enormous stakes for OpenAI, which is seeking to go public later this year at about a $1tn valuation. Musk is seeking to undo its corporate restructuring and force the removal of Altman as CEO and Brockman as president. He is also seeking around $134bn in damages, which he wants redistributed to OpenAI's non-profit that still oversees the company. On Monday, nine jurors were seated after a day-long selection process that included a questionnaire about their feelings towards AI and Musk. Many prospective jurors stated they had negative feelings about the Tesla CEO and thoughts about AI, while Judge Yvonne Gonzalez Rogers assured the court that the case would not focus on technical details. "This is just a case about promises and breaches of promises, it won't get technical at all," Gonzalez Rogers said. The trial is expected to last around three weeks. Other tech industry bigwigs who may testify include Microsoft CEO Satya Nadella and Neuralink executive Shivon Zilis, who is also the mother of four of Musk's children.

Elon Musk to Return to Witness Stand for Cross-Examination by OpenAI's Lawyer

By Deepa Seetharaman and Kenrick Cai OAKLAND, California, April 30 (Reuters) - ⁠Elon ⁠Musk is due to return ⁠to the witness stand on Thursday for a second day of cross-examination by Sam Altman's lawyer, in a high-stakes trial over a lawsuit Musk brought accusing OpenAI of abandoning its mission to develop artificial intelligence for the benefit of humanity. The world's richest man alleges that OpenAI, its co-founder and CEO ⁠Sam Altman, and ⁠its President Greg Brockman wooed his $38 million in donations by promising to build a nonprofit that would prioritize safe development of AI, before pivoting to create a for-profit entity to enrich themselves. OpenAI has countered that Musk, the CEO of Tesla and SpaceX, is driven by a compulsion to control OpenAI and is bitter about the company's success after he left the board in ⁠2018. They ⁠have also said he ⁠did not prioritize safety issues when he was with the company, and that he is trying to bolster his own AI company, SpaceX ⁠unit xAI, which lags OpenAI in user adoption. In tense exchanges on Tuesday, William Savitt, a lawyer for OpenAI, Altman and Brockman, pressed Musk about text messages and emails showing that he at times expressed openness to creating a for-profit entity and that Altman kept him apprised about Microsoft's investments ⁠in OpenAI. Earlier on Wednesday, jurors in federal court in Oakland, California, saw an email Musk ⁠sent to Altman and Brockman in 2017, referring to himself as a "fool" for providing them funding for what he believed was a nonprofit venture. "I felt like they had not been honest with me," Musk said under questioning by his lawyer, Steven Molo. "What they really wanted to do was create a for-profit where they had as much shareholder ownership as possible." OpenAI has said it created a for-profit entity to allow it to accept private investments to help buy computing power and pay top scientists. Savitt is expected to ⁠cross-examine Musk for about an hour on Thursday, and a lawyer for Microsoft will also question him. The trial started on Monday and is expected to last several weeks. The next witnesses after Musk are expected to be his top aide, Jared Birchall, Brockman, and AI safety expert Stuart Russell. (Reporting by Deepa Seetharaman and Kenrick Cai in Oakland, CaliforniaWriting by Luc CohenEditing by Rod Nickel)

Elon Musk testifies OpenAI should return to its nonprofit roots

The bitter legal fight between Elon Musk and the leading artificial intelligence firm, OpenAI, led by Sam Altman, may come down to a few pages in one executive's personal diary. Elon Musk took the stand on Tuesday at a high-stakes trial over the future of OpenAI, casting his lawsuit against the ChatGPT maker as a defense of charitable giving. The world's richest person is suing OpenAI, its co-founder and Chief Executive Sam Altman and its President Greg Brockman, saying they betrayed him and the public by abandoning OpenAI's mission to be a benevolent steward of AI for humanity, and transforming the nonprofit into a profit-seeking juggernaut. "If we make it OK to loot a charity, the entire foundation of charitable giving in America will be destroyed," Musk testified on the first day of the trial. "That's my concern." Musk, who founded automaker Tesla TSLA.O and rocket company SpaceX, characterized OpenAI as his brainchild as well. "I came up with the idea, the name, recruited the key people, taught them everything I know, provided all of the initial funding," Musk said. "It was specifically meant to be for a charity that does not benefit any individual person. I could've started it as a for profit and I specifically chose not to." Before Musk began testifying, William Savitt, a lawyer for OpenAI and Altman, told jurors during his opening statement it was Musk who saw dollar signs as he helped finance OpenAI's early growth and pushed it to become a for-profit business, one he might eventually lead as CEO. Savitt said Musk wanted "the keys to the kingdom," and sued only after he failed. In 2023, he started his own AI business, xAI, now part of SpaceX. "What he cares about is Elon Musk being on top," Savitt said in his opening statement. "We are here because Mr. Musk didn't get his way." OpenAI's lawyer also framed OpenAI's March 2019 creation of a for-profit entity as critical to letting it buy computing power and pay top scientists to stay competitive with Google's GOOGL.O DeepMind AI lab. Musk's lawyer, Steven Molo, told jurors in his opening statement it was the OpenAI defendants who were greedy for money, as OpenAI began drawing investors including Microsoft MSFT.O, which invested $10 billion in January 2023. "It wasn't a vehicle for people to get rich," Molo said. Musk is expected to resume his testimony on Wednesday. Judge admonishes Musk over social media use Musk is seeking $150 billion in damages from OpenAI and Microsoft, one of its largest investors, with proceeds going to OpenAI's charitable arm. He also wants OpenAI to revert to a nonprofit, with Altman and Brockman removed as officers and Altman removed from its board. Musk's claims include breach of charitable trust and unjust enrichment. While Musk described OpenAI as a charity, the organization called itself a nonprofit artificial intelligence research company in a 2015 post, "Introducing OpenAI." Before jurors were seated, U.S. District Judge Yvonne Gonzalez Rogers admonished Musk after OpenAI lawyers complained about his posts on X on Monday, in which he assailed Altman as "Scam Altman" and accused him of stealing a charity. Rogers said she was loath to issue a gag order, but urged Musk to "try to control your propensity to use social media to make things work outside the courtroom ... Perhaps you've never done that before." Musk agreed to minimize his social media activity, and Altman similarly agreed. Altman and Microsoft chief Satya Nadella are also expected to testify. The trial offers a window into some of the egos and personalities that shaped OpenAI as it evolved from a nonprofit research lab in Brockman's apartment to a company worth more than $850 billion. It also risks complicating OpenAI's plans for a potential initial public offering by casting doubt on its leadership, and could intensify Americans' fears about AI technology more broadly. Lawyers dispute importance of AI safety to Musk Musk and Altman co-founded OpenAI in 2015 with a goal of developing AI to benefit humanity and fend off rivals such as Google. Musk testified that "I've had extreme concerns about AI for a very long time," and focused more intently on it after meetings with former U.S. President Barack Obama and Google didn't address AI's risks. "I was very close friends with Larry Page at Google," Musk testified, referring to Google's co-founder. "We would talk for many hours about AI safety. At a certain point it was clear to me Larry Page was not sufficiently caring about AI ... We had to have a counterpoint against Google." Savitt, in his opening statement, said AI safety wasn't a priority for Musk, and that Musk denigrated OpenAI employees who focused on it. "Jackasses is what he called them," Savitt said. Musk has said he provided about $38 million to OpenAI for its original mission, and testified he flexed his connections to provide computing capacity, personally approaching Nadella as well as Nvidia NVDA.O CEO Jensen Huang. OpenAI created its for-profit entity 13 months after Musk left its board. Russell Cohen, a lawyer for Microsoft, said in his opening statement that the company didn't do anything wrong, and has been "a responsible partner every step of the way." OpenAI also faces growing competition from rivals including Anthropic, and is spending billions on computational resources. A potential IPO could value the company at $1 trillion, Reuters has reported. Musk's xAI trails far behind OpenAI in usage. He has folded that business into SpaceX, whose own potential IPO this year could be the largest ever. Late last year, OpenAI overhauled its structure again to become a public benefit corporation, in which the nonprofit and other investors including Microsoft hold stakes. The nonprofit holds a 26% stake, plus warrants if OpenAI hits certain valuation targets. Reporting by Deepa Seetharaman and Kenrick Cai in Oakland, California; Editing by Daniel Wallis, Nick Zieminski, Noeleen Walder and Peter Henderson

Musk vs. Altman: Tech titans face off in court

Tesla CEO Elon Musk and OpenAI CEO Sam Altman are poised to face off in court Monday, as the yearslong feud between the two tech titans comes to a head at a trial over the ChatGPT maker's corporate structure. Musk, who helped found OpenAI in 2015 before leaving and later launching his own AI company, has long appeared at odds with Altman, with the two often publicly clashing over social media. The tech billionaire ratcheted up the dispute in 2024 by suing over OpenAI's alleged shift away from its founding mission. The trial will pit one tech leader against another in a legal battle that could have consequences for the rapidly changing and competitive landscape of AI. Jury selection begins Monday in Oakland, California. OpenAI partnership devolves into feud Musk and Altman founded OpenAI as a non-profit in 2015 with former Stripe executive Greg Brockman, computer scientist Ilya Sutskever and others. The Tesla CEO joined forces with Altman and the others to launch the company as he voiced concerns about AI safety. At the time, OpenAI maintained it wanted to advance AI in the way that is "most likely to benefit humanity as a whole," arguing that its freedom from financial obligations allowed them to focus on a "positive human impact." Musk invested about $38 million in OpenAI from late 2015 through May 2017. But by late 2017, the founders realized much more capital would be needed to developAI in the ways they hoped, and they moved to create a for-profit entity, according to OpenAI. Musk clashed with company executives about who would lead the company and its potential creation of a for-profit wing. He stepped down from OpenAI's board in 2018, citing potential conflicts of interest with his work for Tesla. OpenAI went on to add the for-profit arm in 2019 and altered its structure last year to convert the entity into a public benefit corporation that remained under control of the nonprofit. In early 2025, Musk launched a $97.4 billion bid to buy OpenAI's nonprofit, promising to withdraw it if the company halted its conversion plans. OpenAI declined the offer, and U.S. District Judge Yvonne Gonzalez Rogers also rejected Musk's request in court. Since then, Musk and Altman have repeatedly duked it out on social media, trading insults over their past business dealings and other tech issues. Musk takes aim at OpenAI's non-profit roots, restructuring Musk sued Altman and OpenAIin August 2024, alleging that OpenAI, Altman and Brockman manipulated the billionaire into co-founding and financially backing the venture before abandoning its original nonprofit mission. The lawsuit argues Altman and Brockman "betrayed" Musk in its for-profit operations and partnership with Microsoft, the largest investor in OpenAI. OpenAI has pushed back on these allegations, arguing the suit is part of an attempt to slow down the company to benefit Musk's AI firm, xAI, which he founded in 2023. Musk originally sought more than $130 billion in damages, according to court filings, though pre-trial rulings against Musk are likely to reduce the amount. Any damages won are expected to go back to OpenAI's nonprofit, Musk's lawyers told the court this month. Rogers agreed to drop two fraud claims in the suit after Musk said he was willing to do so to streamline the case. The xAI founder is also asking for the removal of Altman and Brockman from their roles and the unwinding of the firm's for-profit conversion. Altman, Musk both expected to testify The four-week trial will bring Altman and Musk to the stand to testify, with each tech leader seemingly looking forward to putting the other on the spot. "We'll also finally have the chance to question Mr. Musk under oath before a jury of Californians about this attempt to undermine our work to ensure that artificial general intelligence benefits all of humanity," OpenAI wrote on X 10 minutes before jury selection kicked off Monday. "Can't wait to start the trial," Musk wrote on X, which he owns, last January. "The discovery and testimony will blow your mind." Altman in February quipped it would be "Christmas in April" when Musk testifies under oath this month. From documents to depositions to text messages and diary entries, the case is also giving the public a rare glimpse inside the inner workings of Silicon Valley and the handful of technology moguls that run it. Others expected to testify include Brockman, Sutskever, Microsoft CEO Satya Nadella, and Shivon Zillis, who met Musk at OpenAI and now works as a director at his neurotechnology company Neuralink. Zillis, the mother of four of Musk's children, is also a plaintiff in the case. Musk and Altman have faced a barrage of public scrutiny in recent years over their leadership of their respective tech firms and the broader concerns about AI's impact on the workforce and environment. The trial is expected to reveal more information about the technology leaders, and their vision of AI development in the future. AI future at play as OpenAI, SpaceX prepare for competing IPOs The four-week trial could have major implications for OpenAI's future, especially if the jury sides with Musk. The ChatGPT maker is planning to launch an initial public offering a in late 2026. The company's estimated valuation is approaching $1 trillion, reportedly sitting around $852 billion. OpenAI is in fierce competition with other AI firms, including Anthropic, to be the first to go public, though an unfavorable verdict could upend these plans. Meanwhile, Musk's spacecraft and satellite communications company SpaceX is also eyeing an IPO in June, with experts expecting the company's valuation well over $1 trillion. SpaceX acquired xAI earlier this year.

The Trial Between Elon Musk and Sam Altman Is a Battle for the Future of AI

While Altman and Musk are fairly bitter enemies today, they started off as friends. As OpenAI grew and evolved, however, a schism began to form. The relationship was further complicated by Musk's involvement in the 2024 presidential election and his work with DOGE. As jury selection gets underway for the civil suit (assuming there's not a last-minute settlement, which is always a possibility), here's what you need to know about Musk v. OpenAI, Altman, and company president Greg Brockman. The conflict at the heart of the Musk-Altman case Musk alleges OpenAI has turned its back on its humanitarian mission, focusing instead on profit. Musk, Altman, and others co-founded OpenAI as a nonprofit AI lab in 2015 and Musk now feels he was led astray by Altman's early claims.

Musk and Altman Head to Trial in Feud Over Future of OpenAI

Elon Musk and Sam Altman will face off this week in a trial that could determine the future of OpenAI. The high-profile showdown between the artificial intelligence titans is the culmination of years of animosity and public feuding over the startup that the pair founded together more than a decade ago, before their relationship soured and they became rivals. Musk alleges Altman and other leaders at OpenAI enriched themselves by abandoning its altruistic principles and converting to a for-profit company with billions of dollars in support from Microsoft Corp. OpenAI and Altman have accused Musk of harassment and say the real goal of the lawsuit is to undercut competition with his own startup that he co-founded in 2023, xAI. The world's richest person is seeking as much as $134 billion in damages from OpenAI and Microsoft -- a stratospheric amount for a court case -- all of which he pledged just this month to give to OpenAI's charitable arm and not to himself or any of his companies. Musk also is asking the court to remove Altman and OpenAI President Greg Brockman from their leadership positions. Get the Tech Newsletter bundle. Get the Tech Newsletter bundle. Get the Tech Newsletter bundle. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Plus Signed UpPlus Sign UpPlus Sign Up By continuing, I agree to the Privacy Policy and Terms of Service. But the biggest threat to OpenAI is that Musk is seeking to restore the startup's status as a full nonprofit research organization by unwinding the for-profit restructuring that was completed in October. Altman pitched the conversion as critical to securing the vast amount of funding OpenAI needs to fulfill its mission of creating artificial general intelligence -- or AGI -- that will benefit humanity. Critical Moment Such a shakeup to OpenAI's C-suite or core structure could destabilize the company during a critical moment as it's eyeing a much-anticipated public offering that could be one of the largest in history; the startup was last valued at $852 billion in March. The brief, failed ouster of Altman in 2023 almost collapsed the ChatGPT maker, with investors pressing the board to bring back Altman and employees pledging to quit en masse if the CEO wasn't reinstated. Another disruption of that magnitude could stymie the company, leaving an opening for rivals to gain ground including xAI, the maker of the Grok chatbot that was recently acquired by SpaceX as Musk's rocket ship company plans an IPO. Microsoft also has a lot on the line, as the restructuring of OpenAI gave the software giant a 27% stake in the startup. Resurgent Competition Regardless of the outcome, the two years the legal fight has been playing out and the three-week trial amount to a lengthy distraction for OpenAI and its staff at a time when it faces resurgent competition. The trial will resurface years-old drama over the actions of OpenAI's leaders and whether they've adhered to their mission to benefit the public in the startup's rapid expansion to become one of the worlds' most valuable, powerful companies leading the global AI boom. "The stakes are really big for OpenAI, almost existential," said Dorothy Lund, a law professor at Columbia University and co-host of the Beyond Unprecedented podcast. "Musk is asking for stuff and any one of the things he's asking for could be the end of OpenAI." Jury selection is scheduled for Monday, and opening arguments and testimony are expected to start on Tuesday. The case has been divided into two phases: The first will focus on the veracity of Musk's allegations about the defendants -- OpenAI, Altman, Brockman and Microsoft. The second will determine an appropriate remedy if the jury and judge find in Musk's favor. Altman Versus Musk: How the Biggest Feud In Tech Landed in Court The trial will revisit the founding years of OpenAI and Musk's departure in 2018, which he has said was due to disagreements about the company's development. Microsoft will be defending itself against Musk's claims that it aided the abandonment of OpenAI's mission when it invested $13 billion in the startup starting in 2019. OpenAI's Argument OpenAI has argued that Musk's claims are unfair because he was initially on-board for a for-profit pivot and at one point pitched having Tesla absorb the startup as part of a conversion. OpenAI countersued Musk a year ago, accusing him of weaponizing legal claims, social media posts and news stories to try to sabotage the startup's success. Those claims are still pending but won't be part of the trial. Microsoft, meanwhile, has argued that its investment in OpenAI was critical to funding the development of cutting-edge technology and has rejected Musk's allegation that it "aided and abetted" a betrayal of the startup's founding mission. Musk's complaint in November 2024 listed 26 claims, but several were dismissed, others were abandoned and some were put on hold until after the trial. With Musk dropping two fraud allegations last week, the claims the jury will consider are breach of charitable trust and unjust enrichment. Both Musk and Altman are expected to testify during the first phase of the proceedings. Musk is a relative veteran of courtroom clashes, earning himself the nickname "Teflon Elon" because he usually prevails in trials. This will be Altman's first trial, though he has testified publicly in Congress. Possible Witnesses Other possible witnesses include: Brockman, Microsoft Chief Executive Officer Satya Nadella, Musk's longtime business manager Jared Birchall, former OpenAI chief scientist Ilya Sutskever, and several current and formal employees and board members of OpenAI. That includes Shivon Zilis, who has four children with Musk. Witnesses are likely to be questioned thoroughly over their private communications about OpenAI, Musk and the company's future. Hundreds of pages of evidence already have been made public, including text messages between Musk and Zilis about how he viewed his relationship with OpenAI and emails between Musk, Altman, Brockman and Sutskever in the early days of the startup. US District Judge Yvonne Gonzalez Rogers has said some character evidence will be off-limits during the trial. OpenAI had sought to question Musk about his alleged use of ketamine, an anesthetic drug that can have hallucinogenic properties. But Gonzalez Rogers said there wasn't enough evidence about ketamine's mind-altering effects to suggest it might have impacted Musk's negotiations with OpenAI. Burning Man Lawyers for OpenAI will be allowed to ask Musk about his attendance at Burning Man, an annual festival in the Nevada desert where drug use is common. OpenAI's attorneys said "a lot of significant communications" between Musk and OpenAI happened while he was at the festival. Gonzalez Rogers has also restricted what Musk can present to explain his motives for suing -- including that he won't keep any damages that may be awarded at the trial's conclusion. The jury will issue an "advisory verdict" at the conclusion of testimony. A final ruling on Musk's claims -- and any remedies -- will be issued by Gonzalez Rogers, using the jury's findings as a guidepost. What Bloomberg Intelligence Says We ascertain a 60% chance Musk wins at trial. Musk's case is vulnerable later on appeal. -- Matthew Schettenhelm, Litigation Analyst, and Tamlin Bason, Industry Analyst For a full report click hereBloomberg Terminal Even if Musk loses, the trial could still pay off for him because it will put all sorts of closely guarded information about how OpenAI operates in the public realm and "some of that can be useful for his own private endeavors in this AI race," according to Lund. "In a way, just the fact that this thing is going to trial is already a big win for Musk in this information-forcing aspect." The case is Musk v. Altman, 4:24-cv-04722, US District Court, Northern District of California (Oakland).

Musk drops fraud claims against OpenAI, Altman ahead of trial | Fortune

US District Judge Yvonne Gonzalez Rogers on Friday agreed to Musk's request to "streamline" the case, leaving just two claims to proceed to trial of the 26 included in his November 2024 complaint. Jury selection is set for Monday in federal court in Oakland, California. Musk alleges the artificial intelligence startup abandoned its founding mission as a nonprofit to benefit humanity when it took billions of dollars in backing from Microsoft Corp. and planned its restructuring as a for-profit business. Musk is seeking as much as $134 billion in damages that he has asked be directed to OpenAI's charitable arm, if he wins at trial. He also wants a court order restoring the firm's status as a nonprofit research organization and wants a judge to order that Altman and Brockman both be removed from their roles at OpenAI. Altman is chief executive officer and Brockman serves as president. Read More: OpenAI Accuses Musk of 'Ambush' as $100 Billion-Plus Trial Looms OpenAI complained to the judge two weeks ago that the remedies proposed by Musk were an 11th-hour surprise and accused the world's richest person of a "legal ambush" with the trial looming. OpenAI, Altman, Brockman and Microsoft have all denied wrongdoing, saying Musk's claims are baseless harassment. The trial will be divided into two phases. During the first portion, a jury will hear arguments and testimony about Musk's allegations, which now focus on two claims -- unjust enrichment and breach of charitable trust. The panel will issue an "advisory verdict" that will not be binding on Gonzalez Rogers, who will ultimately decide whether Musk proved his claims. In the second part of the proceedings, Gonzalez Rogers will hear arguments on the remedies Musk is seeking and issue a ruling. Musk co-founded OpenAI with Altman and others in 2015, but the former business partners have become bitter foes in recent years. Musk left OpenAI's board in 2018 and in 2023 co-founded the artificial intelligence company xAI, which has become one of OpenAI's main rivals. Last February, OpenAI rejected Musk's unsolicited bid to acquire the assets of the nonprofit that controls the company for $97.4 billion. Months later, the company completed its for-profit restructuring plan, paving the way for it to raise more capital and potentially go public. The case is Musk v. Altman, 4:24-cv-04722, US District Court, Northern District of California (Oakland).

Elon Musk vs. OpenAI: What You Need to Know About the Epic $134 Billion Trial

It's hard to imagine now, but Elon Musk and Sam Altman were once happy co-workers. The power duo co-founded OpenAI in 2015 to build artificial intelligence safely. Now they're facing off in a bitter $134 billion lawsuit that went to trial this week. Here's what the trial is all about: Musk left OpenAI's board in 2018 and sued the company, Altman and president Greg Brockman in 2024, alleging they broke their commitment to keep the AI lab a nonprofit. Musk claims he was "assiduously manipulated" and "deceived" by promises to "chart a safer, more open course than profit-driven tech giants." He wants the judge to unwind OpenAI's recent restructuring, which turned it into a nonprofit with a controlling stake in a for-profit business, and remove Altman and Brockman from their roles. OpenAI calls the lawsuit "baseless and jealous." Of Musk's 26 original claims, only two remain: unjust enrichment and breach of charitable trust. The trial comes as Musk prepares to take SpaceX public in a record IPO and OpenAI gears up for its own public offering later this year.

Musk v. Altman heads to court next week. Here's what's at stake

A yearslong legal brawl between Elon Musk, the world's richest man, and OpenAI CEO Sam Altman heads to court in Northern California on Monday in a dramatic showdown between two of the most high-profile names in the tech industry. In his $134 billion lawsuit, Musk claimed that OpenAI, Altman and the company's president, Greg Brockman, reneged on a vow they made to keep the artificial intelligence lab a nonprofit in perpetuity. OpenAI has since restructured so that it can operate a for-profit subsidiary, and it's now valued at over $850 billion. Musk and Altman were once close friends, and were among a group of of techies who founded OpenAI in 2015 out of a shared concern over the potential power of AI and the need to advance it in ways that would benefit humanity. Now they're public enemies and bitter rivals, with Musk having started xAI as an OpenAI competitor in 2023 and recently merging it with SpaceX in a deal valuing the combined entity at $1.25 trillion. The trial lands as Musk is preparing to take SpaceX public in what will likely to be a record IPO. OpenAI is targeting a potential fourth-quarter market debut, as CNBC previously reported. In a document distributed to prospective investors earlier this year, OpenAI characterized the ongoing litigation with Musk as a potential risk to its business. The startup has repeatedly dismissed Musk's lawsuit as "baseless," calling it a "harassment campaign that's driven by ego, jealousy and a desire to slow down a competitor," according to a post on X earlier in April. Jury selection in Musk v. Altman begins Monday in a federal courthouse in Oakland, just over the Bay Bridge from San Francisco, where OpenAI is headquartered. Should he succeed, Musk said he wants the court to return all "ill-gotten gains" to OpenAI's nonprofit, not to him personally. He's also seeking to have Altman and Brockman removed from their roles, and to "unwind OpenAI's for-profit conversion and restructuring." It's not the only litigation Musk has brought against OpenAI. X, formerly Twitter, along with xAI sued OpenAI and Apple in 2025 for alleged anticompetitive behavior. A hearing in that case is scheduled for May in Texas. And in February, a federal judge in California dismissed a separate lawsuit from xAI that accused OpenAI of stealing its trade secrets.

The unflattering secrets revealed so far in Elon Musk's latest legal feud

Tesla chief executive Elon Musk and Sam Altman, CEO of ChatGPT-maker OpenAI, are scheduled to face off in court next week in a case brought by Musk that claims Altman and others enriched themselves by allegedly betraying the artificial intelligence company's founding mission. The bitter legal feud between the two tech titans is prying open the industry's most powerful circles by spilling the tea of Silicon Valley VIPs. Hundreds of court filings have revealed cringey texts, emails or private diary entries of Musk, Altman, other OpenAI founders and other public figures. They include Meta CEO Mark Zuckerberg privately offering to use his social platforms to help Musk's interests, Musk insulting Amazon Executive Chairman Jeff Bezos (twice) and a journal in which a big MAGA donor muses about becoming a billionaire, according to the filings. (Bezos owns The Washington Post; OpenAI has a content partnership with The Post.) There will be fireworks in the federal courtroom in Oakland, California, predicted Andrew Stoltmann, a corporate litigation lawyer not involved in the case who has followed it closely. "We are about to witness the landing of the Hindenburg on the deck of the Titanic; we know it's going to be crazy and nasty." Musk and Altman co-founded OpenAI in 2015, but Musk left the company in an acrimonious split in 2018. His lawsuit, originally filed in 2024, alleges that OpenAI broke its founding pledges to share its technology openly with the world as a nonprofit artificial intelligence research lab. Musk argues that Altman and Greg Brockman, another OpenAI co-founder, conspired to enrich themselves at Musk's expense and asks the court to remove them from their leadership positions and to restore OpenAI to a full nonprofit. OpenAI has said Musk is simply trying to undercut a competitor to his own AI company, xAI. A spokesperson for OpenAI referred The Post to a website where it has posted running commentary on the dispute. "Motivated by jealousy, regret for walking away from OpenAI and a desire to derail a competing AI company, Elon has spent years harassing OpenAI through baseless lawsuits and public attacks," the site says. Musk and an attorney for him did not respond to requests for comment. OpenAI declined to make Altman or Brockman available. Here are five revelations or questions that emerged from a Post review of the court records. What did Elon Musk do at Burning Man in 2017? The annual festival in Nevada's desert is a pilgrimage for counterculture types and for Silicon Valley's elite. OpenAI's lawyers have quizzed Musk about his activities during Burning Man in 2017, which they say coincided with the thick of negotiations among him, Altman, Brockman and others over shifting OpenAI's nonprofit status. OpenAI has said Musk might not accurately remember the discussions. In a September deposition, Musk was repeatedly asked about "rhino ketamine," a concoction that's commonly a mixture of the hallucinogenic and anesthetic drug ketamine and amphetamine stimulants. Musk testified that he didn't know what rhino ketamine was and did not recall using it at the event. He has previously acknowledged using ketamine, which he said was prescribed to him to treat depression. Musk's attorneys said asking about Burning Man and drugs at trial would be "inflammatory" and "irrelevant" and asked to exclude those subjects from the trial. The federal judge overseeing the case, Yvonne Gonzalez Rogers, ruled last month that OpenAI can't bring up ketamine in court, but that Burning Man is fair game. "Musk's attendance at Burning Man in 2017 is relevant to the attention he paid to his negotiations with OpenAI, which supposedly occurred during the same period," she wrote. A "supposed lapse in memory" from ketamine use could be relevant, Gonzalez Rogers wrote, but she said OpenAI's lawyers couldn't point to evidence that suggested Musk used the drug. Musk's alleged secret agent inside OpenAI was also the mother of four of his children Shivon Zilis is a longtime ally of Musk and has worked at several of his companies. She acted as an "Elon whisperer" to OpenAI, Altman said in his deposition, and the company says she served on its board of directors from 2020 to 2023. Documents in the case include text messages in which the pair appear to discuss how Zilis can feed information from inside OpenAI back to Musk. OpenAI says in the lawsuit that Zilis was secretly informing for Musk at OpenAI's expense, and that she is supporting his claim that Altman and others changed the venture's structure against Musk's wishes. In 2022, it was revealed publicly that Zilis and Musk had twins together the prior year. The pair started a brief romance around 2016, Zilis said in her deposition in the lawsuit. They now have four children together and are in a romantic relationship, she said. OpenAI argues Zilis's credibility is undermined by what the company said was a romantic relationship and children with Musk that, it alleges, were "concealed" from OpenAI officials. Zilis didn't respond to a request for comment. Among the documents that OpenAI cites is a text exchange between Musk and Zilis just before he quit OpenAI's board in 2018. Zilis asked Musk whether she should stay "close and friendly" with OpenAI to "keep info flowing." (A 2023 message thread in the court filings also showed that Musk was saved in Zilis's phone as "Schrödinger's Cat." Musk seems to enjoy references to this nerdy thought experiment.) Gonzalez Rogers ruled last month that Musk's relationship with Zilis is "highly relevant to Zilis's credibility and Zilis's role as a conduit between Musk and OpenAI." Mark Zuckerberg privately offered Musk help and information Zuckerberg and Musk have verbally sparred for years and even agreed to a physical fight in 2023. (It didn't happen.) Messages in the court record, however, disclosed a couple of times that Zuckerberg reached out to offer Musk help or information. It may fit a pattern shown in Musk's history of legal battles: Even the rich and powerful kowtow to him. After a flurry of news articles in February 2025 about Musk's federal government efficiency project, DOGE, that revealed names of several of its staff members, Musk publicly complained that such disclosures may have been criminal acts. Zuckerberg texted Musk to say that Meta teams were "on alert" to take down "doxxing or threatening" posts. Zuckerberg said Musk should let him know "anything else I can do to help." Zuckerberg has faced criticism since the text was disclosed in March. He had pledged to give Facebook and Instagram users a freer hand from content moderation, and doubters said last year that Musk was complaining about online activity that was protected by the First Amendment. A spokesman for Meta declined to comment on behalf of the company or Zuckerberg. Altman also flattered Musk as the executives feuded. In a 2023 text exchange after Musk posted about his disappointment in OpenAI, Altman told Musk that he was "my hero" and suggested he wouldn't "hurt" Tesla by poaching its employees. Around the same time, Altman also asked Zilis whether he should "tweet something nice about Elon," because Altman said Musk felt slighted for being excluded from a photo of OpenAI's founding. Musk thinks Jeff Bezos is a 'tool' OpenAI has long been hungry for computer horsepower to fuel its AI ambitions, and filings in the case show Musk or Altman repeatedly pressing other technology companies for free or cut-price AI computer power. In a 2016 email exchange between Musk and Altman about such a negotiation, Musk said he'd prefer to rely on computing power from Microsoft over Amazon because Musk believed that Bezos "is a bit of a tool" and that Microsoft CEO Satya Nadella was not. OpenAI ultimately went with Microsoft, which is also a major investor in OpenAI and a defendant in Musk's lawsuit. Musk has had a longstanding spat with Bezos over their dueling space projects. In a September deposition, Musk doubled down on the "tool" diss of his fellow billionaire when asked about it. "He can be, you know," Musk replied, and added, "There's a redemption arc for all of us." A spokesman for Bezos didn't have a comment. A Microsoft spokesman referred to a court filing that said the company's investments in OpenAI "helped to fund one of the largest nonprofits in the world" and "was necessary for OpenAI to pursue its mission." The spokesman declined to comment on the Musk email. The secret diary of a Trump-backing executive that's central to the case Brockman, who started as OpenAI's chief technology officer and is now its president, wrote notes to himself agonizing over whether to align with Musk or Altman during the battle over who would control OpenAI. Brockman's personal notes are a key part of Musk's case, which alleges that Brockman revealed in 2017 his desire to extract personal wealth from the then nonprofit OpenAI when he asked himself in the notes, "Financially what will take me to $1B?" In his deposition last year, Brockman said that he wrote that line as he was thinking through what would financially motivate him, were OpenAI to transition into a for-profit business. He said his first motivation was still to ensure OpenAI's mission could continue. In posts on X, he wrote, "I have great respect for Elon, but the way he cherry-picked from my personal journal is beyond dishonest." Brockman and his wife became wealthy enough to be among the largest donors to MAGA Inc., a super PAC aligned with President Donald Trump, and to another fund that opposes regulation of AI, according to Federal Election Commission filings. In another snippet from his diary, Brockman appears to muse that it would be improper to convert the company into a for-profit without including Musk. "it'd be wrong to steal the non-profit from him. ... that'd be pretty morally bankrupt. and he's really not an idiot." CORRECTION: In a previous version of this article, an image transposed the order of text messages between Mark Zuckerberg and Elon Musk. Musk texted, "Are you open to the idea of bidding on the OpenAI IP with me and some others?" to which Zuckerberg replied, "Want to discuss live?" The image has been corrected.

The legal showdown between Elon Musk and Sam Altman begins today. Here's what to know.

Mary Cunningham is a reporter for CBS MoneyWatch. She previously worked at "60 Minutes," CBSNews.com and CBS News 24/7 as part of the CBS News Associate Program. Jury selection begins Monday in a high-profile case brought by Tesla CEO Elon Musk alleging that Sam Altman's OpenAI, which was founded as a nonprofit research lab, prioritized profits over its original mission to benefit humanity as it ballooned into a corporate enterprise. Musk originally sued in 2024, alleging that OpenAI, Altman, and OpenAI President Greg Brockman betrayed the company's founding agreement to be altruistic stewards of a revolutionary technology that would eventually result in the launch of ChatGPT in 2022. Musk, who was originally seeking $100 billion in damages, is now seeking an unspecified amount to fund the altruistic efforts of OpenAI's charitable arm, as well as Altman's removal from the OpenAI board. OpenAI, which Musk and Altman co-founded in 2015, is valued at $852 billion, according to the Associated Press. Opening statements could begin as early as Tuesday. Judge Yvonne Gonzalez Rogers, who is presiding, will make the final decision in the case, with the jury serving in an advisory role. The trial is expected to provide riveting theater, with contrasting testimony from two of technology's most influential and polarizing figures: the 54-year-old Musk and the 41-year-old Altman. OpenAI declined to comment on Friday. In a post on X on Monday, the company called the lawsuit a "baseless and jealous bid to derail a competitor." Musk's xAI operates the AI chatbot Grok, which debuted in 2023 and competes with OpenAI. "We'll also finally have the chance to question Mr. Musk under oath before a jury of Californians about this attempt to undermine our work to ensure that artificial general intelligence benefits all of humanity," the post said. Musk's legal team did not respond to a request for comment. Musk stepped down as co-chair of OpenAI in 2018 but continued to donate to the AI company until 2020, with his financial contributions totaling $44 million, according to legal filings. However, the Tesla founder grew displeased with the direction of OpenAI as it shifted toward a for-profit structure and eventually yanked his funding -- leading to a bitter fallout between him and Altman. As Musk withdrew his financial support, Microsoft swooped in, becoming OpenAI's biggest investor. Julia Powles, a technology law professor at the University of California, Los Angeles, told CBS News on Friday that the dispute centers on who will control the transformative technology and profit from it. "Both are arguing in this case that they have the public good at heart, that's essentially the core dispute," she said. "But what I think the evidentiary record shows is that both like to tell you what you want to hear." The trial comes at a pivotal moment in the development of artificial intelligence, a technology poised to bring breakneck advancement even as concerns swirl about its impact on the nature of work and humanity as a whole. Wedbush Securities analyst Dan Ives said in a note on Monday that the case could heighten the AI arms race as OpenAI competes for dominance against other players like xAI and Anthropic, which operates the Claude chatbot. OpenAI is expected to go public later this year. The case could also reshape the corporate governance structure of AI research, Ives added. The trial, which is taking place in federal court in Oakland, California, is expected to be a fiery showdown between two of the biggest names in tech. "We believe any major damage to OpenAI and Altman will be more scrapes and bruises than real consequences to the company and his role as CEO," Ives wrote. "That said, it's Elon and never doubt him in these spots."

What's at stake in the Elon Musk-Sam Altman trial

SAN FRANCISCO -- It's a trial so unusual, not even artificial intelligence could make it up. Jury selection begins Monday in a federal courtroom in Oakland, California, in a civil trial that features one tech billionaire, Elon Musk, suing another, Sam Altman. The case is one part business dispute and one part highly personal grudge match -- and it could determine the future of red-hot startup OpenAI and its signature app, ChatGPT. The trial is scheduled to run for four weeks, with a cast of prominent tech executives set to testify. Witnesses are expected to include not only Musk, the CEO of Tesla and SpaceX, and Altman, the CEO of OpenAI, but possibly also Microsoft CEO Satya Nadella and current and former OpenAI board members, as well as top AI researchers. "Billionaires versus billionaires," observed Judge Yvonne Gonzalez Rogers, who is presiding over the case, in a hearing last year in Oakland, just across San Francisco Bay from OpenAI's headquarters. At the heart of the case is OpenAI's transformation from a nonprofit research center founded in 2015 into a for-profit behemoth, now with billions of dollars in outside investment. Altman and Musk were the founding co-chairs of OpenAI. OpenAI completed a restructuring in October, with the for-profit organization still reporting to a nonprofit foundation. Musk, who now has a rival AI startup, xAI, says the transformation away from nonprofit status was a betrayal. He alleges that Altman and others accepted his money, advice and time under the pretense of creating a public-spirited enterprise only to later allow people to cash in. Musk sued Altman and a long list of other co-defendants in 2024, demanding restitution that he later estimated at $134 billion. Altman's side counters that Musk is rewriting history. They argue Musk left OpenAI in a huff in 2018 and never gave the full $1 billion he pledged. They also say Musk agreed with them years ago about the need to convert OpenAI into a for-profit company in order to raise capital -- only they say Musk wanted OpenAI for himself and argued for folding it into his automaker, Tesla. Both sides appear to relish the chance to prove themselves correct. "Can't wait to start the trial. The discovery and testimony will blow your mind," Musk posted in January on X, which he owns. "Really excited to get Elon under oath in a few months, Christmas in April!" Altman said in February, also on X. The two men are similar in a few ways. They're both tech billionaires with a keen interest in AI who have built massive companies in the Bay Area. They share a love of posting on X and have become household names through their business success and media profiles. But they also have sharp differences. Musk, 54, is nearly a generation older than Altman, 41. Musk is active in far-right Republican politics, while Altman is a conflicted longtime Democratic donor who last year called himself "politically homeless" and gave $1 million to President Donald Trump's inauguration. Altman is a booster for San Francisco, advising its mayor and expanding OpenAI's offices here, while Musk shuns the city and now lives in Texas. Musk is also vastly wealthier, with a $645 billion net worth that makes him the richest person in the world, according to Bloomberg. With SpaceX's expected IPO later this year, Musk could become the world's first trillionaire. The souring of their relationship has at times bordered on the petty and personal. Musk has repeatedly posted on X about "Scam Altman," while Altman publicly demanded back his $45,000 deposit for a Tesla Roadster, Musk's long-delayed sports car. The timing only adds to the trial's drama: OpenAI is locked in a heated battle with Anthropic and Google for leadership in the AI market, trying to get both consumers and business customers hooked on chatbots and other AI tools, while public anger over AI continues to simmer as evidenced by a recent attack on Altman's home. The trial has the potential to radically upend OpenAI if the jury and judge agree with Musk. In a court filing in January, Musk said he planned to ask for $134 billion from OpenAI and Microsoft, which is one of OpenAI's top backers and a co-defendant in the trial. Musk amended that proposal in a second filing this month, saying instead that any funds disgorged from OpenAI and its executives should go to OpenAI's charitable arm. He also said he'd ask the judge to order the firing of Altman and OpenAI co-founder Greg Brockman, along with a permanent injunction to preserve OpenAI's original charter. OpenAI called those proposed outcomes a "legal ambush" on the eve of trial. Musk says he gave OpenAI $38 million during its early years, or what he says was 60% of the nonprofit's seed funding. Unlike in some other trials, the jury in the case is advisory, meaning the judge will consider their verdict but ultimately make the decision herself about liability. She also said in an order this month that she alone would decide the remedy, without the advice of a jury, if the trial gets that far. The tech industry has been salivating over the upcoming trial, not only because of what it might mean for OpenAI but also because of the juicy gossip it has produced. Among the documents that have been unsealed as part of the case are Brockman's personal notes in which he mused about wanting to become a billionaire. In a 2016 email that surfaced in the case, Musk wrote to Altman saying OpenAI should work with Microsoft as a cloud-computing provider instead of with Amazon because Musk considered Amazon founder Jeff Bezos to be "a bit of a tool." Traders on the prediction market site Polymarket were giving Musk 32% odds of success as of Friday, after weeks of volatile price swings. The judge, due to her proximity to Silicon Valley, already has years of experience dealing with wealthy tech companies and their high-priced legal teams. Last year, she ruled that Apple had violated a court order in an antitrust case and referred the iPhone maker to federal prosecutors for possible criminal prosecution. (Prosecutors declined to comment Friday on the status of the referral.) She has already taken a strict approach to the Musk-Altman case. In an order last year, she warned the parties that they had "over-litigated this case" with excessive or irrelevant arguments. "The Court will not waste precious judicial resources on the parties' gamesmanship," Rogers wrote. For the trial, she has ordered everyone -- billionaires included -- to enter the courthouse through the regular front door and go through security screenings. "That some of the parties and witnesses may have high profiles does not warrant special privileges," she wrote in an order last month. Musk requested a jury trial, and the judge said she'll seat nine advisory jurors with no alternates. They'll be drawn from San Francisco and several surrounding counties, an area that includes many tech workers as well as critics of the industry and AI. In February, a federal judge in San Francisco overseeing a different trial involving Musk had difficulty finding jurors who could set aside their views about the billionaire and keep an open mind. One potential juror in that case said Musk had "no moral compass" and was excused, while a lawyer for Musk complained to the judge that there were "so many people who hate him so much," the news site Law360 reported.

Opening remarks Tuesday in Elon Musk versus OpenAI

Oakland (United States) (AFP) - Opening remarks are set for Tuesday in a courtroom showdown between billionaire Elon Musk and OpenAI over whether the artificial intelligence company betrayed its non-profit mission. The legal clash across the bay from San Francisco pits the world's richest person against a startup Musk once backed and now competes with in the booming AI sector. OpenAI's ChatGPT is a formidable rival to the chatbot Grok, made by Musk's xAI lab. OpenAI co-founders Sam Altman and Greg Brockman "are confident in their position and look forward to the facts being known," their attorney, William Savitt, said outside the courthouse after jurors were selected Monday. While Musk's lawsuit is part of a feud between him and OpenAI Chief Executive Altman, it spotlights a debate as to whether AI should ultimately serve to benefit a privileged few or society as a whole. Court filings lay out how Altman convinced Musk to back OpenAI in 2015, acting as a co-founder for a non-profit lab whose technology "would belong to the world." Musk pumped millions of dollars into the lab, which he subsequently left. OpenAI established a commercial subsidiary as it needed hundreds of billions of dollars for data centers to power its technology. Musk argues in his lawsuit that he was deceived about OpenAI's mission being altruistic. He fired off a social media post on Monday calling the OpenAI chief "Scam Altman." San Francisco-based OpenAI has countered in court filings that its break-up with Musk was due to the Tesla tycoon's quest for absolute control rather than its nonprofit status. "His lawsuit remains nothing more than a harassment campaign that's driven by ego, jealousy and a desire to slow down a competitor," OpenAI said of Musk in a recent X post. The judge presiding over the trial will decide by late-May -- guided by an advisory jury's findings -- whether OpenAI broke a promise to Musk in a drive to lead in AI or just smartly rode the technology to glory. Along with calling for OpenAI to be forced to revert to a pure nonprofit, Musk's suit urges the ouster of co-founders Altman and Brockman, who is the startup's president. Musk, who had sought as much as $134 billion in damages, has since renounced any personal benefit, pledging to redirect any award to the OpenAI nonprofit. Judge Yvonne Gonzalez Rogers has reserved the right to determine any remedies herself, without the jury's input. OpenAI now has a hybrid governance structure giving its nonprofit foundation control over a for-profit arm. Musk, who gutted the trust and safety team at Twitter after buying the social media platform that he renamed X, faces the challenge of convincing a jury and a judge that the company behind ChatGPT was built on a lie.

OpenAI Trial Starts With Two Very Different Tales of a Company's Early Years

Reporting from the Ronald V. Dellums U.S. Courthouse in Oakland, Calif. On the first day of testimony in a landmark trial between Elon Musk and OpenAI's Sam Altman, two notably different tales were offered of how OpenAI evolved from a nonprofit artificial intelligence lab into one of the most influential tech companies in the world. In Mr. Musk's telling, OpenAI's shift was one of the greatest heists in history -- a nonprofit ripped from its promise of altruism by the greed of Mr. Altman, who founded OpenAI with Mr. Musk and a group of A.I. researchers more than 10 years ago. In OpenAI's recounting of those early days, however, it was Mr. Musk who was the voracious capitalist. And when the lab's other founders refused to go along with his plans, he left in a huff. "This lawsuit is very simple: It is not OK to steal a charity," Mr. Musk said Tuesday on the witness stand in an Oakland, Calif., courtroom. If Mr. Altman and OpenAI are allowed to continue with their plans, he added, "It will give license to looting every charity in America." A nine-member jury, seated a day earlier in federal court by Judge Yvonne Gonzalez Rogers, will hear from tech moguls, former OpenAI board members and employees in what is expected to be a monthlong trial. The jurors' decision could shift the balance of power among A.I. companies, with Mr. Musk seeking $150 billion in damages and an order that OpenAI, now valued at about $730 billion, unwind its for-profit plans. The trial -- pitting the richest man in the world against the pioneer of the tech industry's artificial intelligence boom -- has drawn protesters and extra security to the normally quiet streets of downtown Oakland. Mr. Musk and Mr. Altman were each whisked through a private entrance to the Ronald V. Dellums U.S. Courthouse as a line of lawyers and reporters waited to enter. Security had become more of a concern after a man, believed to be angry about A.I., was recently arrested after the authorities say he threw a firebomb at Mr. Altman's San Francisco home. It was clear in the courtroom that the feud between Mr. Musk and Mr. Altman has become deeply personal. As Judge Gonzalez Rogers broke for a brief recess on Monday before welcoming prospective jurors, Mr. Altman approached a New York Times reporter and said, "I hope you enjoy this." And before lawyers made their opening statements on Tuesday, the judge admonished Mr. Musk about his prolific social media postings targeting OpenAI and mocking Mr. Altman as "Scam Altman." "How can we get things done without you making things worse outside the courtroom?" she asked. Mr. Musk said he was just responding to things OpenAI had said online. The judge asked him -- and Mr. Altman -- to start with a "clean slate" and "keep things to a minimum" on social media. They agreed. In his opening statement, Mr. Musk's lead counsel, Steven Molo, accused Mr. Altman and his fellow OpenAI executives of "stealing a charity." After Mr. Musk helped found OpenAI as a nonprofit, Mr. Molo said, Mr. Altman and others unjustly enriched themselves by transforming the charitable organization into a moneymaking enterprise. He compared today's OpenAI to a museum store that has taken over the museum. "A museum store can't loot the muse, steal all the Picasssos and use them to turn a profit," he told the jury. William Savitt, OpenAI's lead counsel, said in his opening statement that was "sour grapes." "We are here because Musk didn't get his way at OpenAI," he said. "My clients had the nerve to go on and succeed without him. Mr. Musk did not like that." OpenAI's lawyers (as well as a lawyer from Microsoft, which is an OpenAI investor and partner that was also named in the suit) argued that Mr. Musk didn't seem to care that much about OpenAI after he left in 2018. He didn't say anything when Microsoft invested $1 billion in the lab a year later. But when OpenAI's chatbot ChatGPT became a hit in 2022, he started to pay attention. "That's when the sour grapes kick in," Mr. Savitt said. Mr. Musk, the first witness called by his lawyers, recounted his formative years leading to the creation of OpenAI, including a stint as a young lumberjack -- a surprise to many in the courtroom -- and his belief that he could help shape the future through technology. Thirty minutes into this trip through his career, Mr. Musk said the goal of Neuralink, his start-up that aims to implant computer chips in people's heads, is "A.I. safety." "If we can achieve an A.I.-human symbiosis," he said. "We can achieve an A.I. that is better for humanity." Throughout his testimony, Mr. Musk said his various companies were efforts to benefit humanity. He said he created OpenAI after a chat with the Google co-founder Larry Page, who called Mr. Musk a "specieist," meaning a person who favors humans over the digital life-forms of the future. "I wanted a company to be a counterweight to Google -- to be the opposite of Google," he said. This company would not have a "profit motive," he added, and would freely share its technology with the rest of the world. He painted himself as the driving force behind building the nonprofit A.I. lab before it was taken away from him. "I came up with the name, recruited the key people, and raised the funding," Mr. Musk said. He acknowledged that he was part of discussions to create a for-profit part of the enterprise but he wanted to keep the for-profit small. A for-profit was fine, he added, "as long as the tail did not wag the dog." Before the judge ended testimony for the day, Mr. Musk said he ultimately quit OpenAI because the other founders demanded too much equity in the for-profit company and the process of creating a for-profit had become too annoying. He is expected to continue his testimony on Wednesday morning. (The Times has sued OpenAI and Microsoft, claiming copyright infringement of news content related to A.I. systems. The two companies have denied the suit's claims.) Mr. Musk filed his lawsuit in 2024, nine years after he and Mr. Altman and Greg Brockman, the company president also named in the suit, founded OpenAI with several A.I. researchers. They soon realized that a nonprofit could not raise the enormous amounts of money they needed. Mr. Musk proposed folding OpenAI into his electric car company, Tesla, according to emails admitted into evidence in the court case. But he eventually left in a power struggle with Mr. Altman. Mr. Altman and OpenAI raised $1 billion from Microsoft and agreed to license OpenAI's technologies to the tech giant. Mr. Musk eventually founded his own A.I. company, xAI. Last year, OpenAI restructured its for-profit company to prepare for a possible initial public offering on Wall Street, but the original nonprofit maintained control over the company. Mr. Musk folded xAI this year into his rocket company, SpaceX, which is expected to go public as soon as this summer in an offering that could be worth as much as $1.75 trillion. In fact, Mr. Musk is in court just as SpaceX was set to make its case to existing and prospective investors this week at its facilities in Hawthorne, Calif. If the jury finds in Mr. Musk's favor, Judge Gonzalez Rogers will decide on monetary damages and other remedies.

Elon Musk faces tense questioning in cross-examination by OpenAI's lawyer

Elon Musk faced tough questions in court. He is suing OpenAI, alleging it shifted from its nonprofit mission. Musk claims the company sought to enrich itself. OpenAI counters that Musk wants control and is bitter about leaving. The trial is ongoing, with Musk seeking significant damages and a return to nonprofit status. Elon Musk faced tense questioning and showed frustration on the witness stand on Thursday during a second day of cross-examination by Sam Altman's lawyer in a trial over a lawsuit Musk brought accusing OpenAI of abandoning its mission to develop artificial intelligence for the benefit of humanity. The world's richest person alleges that OpenAI, its co-founder and CEO Sam Altman, and its President Greg Brockman wooed his $38 million in donations by promising to build a nonprofit that would prioritize safe development of AI, before pivoting to create a for-profit entity to enrich ⁠themselves. OpenAI has ⁠countered that Musk, the CEO of Tesla and SpaceX, is driven by a compulsion to control OpenAI and is bitter about the company's success after he left the board in 2018. They have also said he did not prioritize safety issues when he was with the company, and that he is trying to bolster his own AI company, SpaceX unit xAI, which lags OpenAI in user adoption. William Savitt, a lawyer for OpenAI, Altman and Brockman, pressed Musk on whether he had read a term sheet that Altman forwarded on August 31, 2017, relating to OpenAI's shift from a nonprofit to a for-profit overseen by a nonprofit. "My testimony is ⁠I didn't read the fine print, just the headline," said Musk, wearing a dark suit, dark solid tie and white shirt. 'You cut me off' At times, Musk expressed frustration with Savitt's cross-examination. "Few answers are going to be complete, especially when ⁠you cut me off all the time," Musk said. Thursday's exchanges echoed a tense cross-examination on Tuesday, when Savitt pressed Musk about text messages and emails showing that he at times expressed openness to creating a for-profit entity and that Altman kept him apprised of Microsoft's investments in OpenAI. Savitt is expected to cross-examine Musk for about an hour on Thursday, and a lawyer for Microsoft will also question him. ChatGPT maker OpenAI, founded in 2015, has evolved from a nonprofit research lab in Brockman's apartment to a company worth more than $850 billion that is planning a potential initial public offering. $150 billion in damages Musk is seeking $150 billion in damages from OpenAI and Microsoft, one of its largest investors, with proceeds going to OpenAI's charitable arm. Musk also wants OpenAI to revert to being a nonprofit, with Altman and Brockman removed as officers and Altman removed from its board. Musk's claims include breach of charitable trust and unjust enrichment. On Wednesday, jurors in federal court ⁠in Oakland, California, saw an email Musk sent to Altman and Brockman in 2017, referring to himself as a "fool" for providing them funding for what he believed was a nonprofit venture. "I felt like they had not been honest with me," Musk said under questioning by his lawyer, Steven Molo. "What they really wanted to do was create a for-profit where they had as much shareholder ownership as possible." OpenAI has said it created a for-profit entity to allow it to accept private investments to help buy computing power and pay top scientists. The trial started on Monday and is expected to last several weeks. The next witnesses after Musk are expected to be his top aide, Jared Birchall, Brockman, and AI safety expert Stuart Russell.

Elon Musk to Return to Witness Stand in Trial Over OpenAI's Future

By Deepa Seetharaman and Max A. Cherney OAKLAND, California, April 29 (Reuters) - Elon ⁠Musk ⁠is set to return to the witness ⁠stand on Wednesday in a high-stakes trial over a lawsuit he brought against OpenAI, alleging the company ditched its mission to be a responsible steward of AI for humanity in pursuit of profits. In testimony on Tuesday before a nine-person jury in Oakland, California federal court, the world's richest person sharply criticized the 2019 decision by the nonprofit OpenAI co-founder and Chief Executive Sam Altman and its President Greg ⁠Brockman to create ⁠a for-profit entity. "If we make it okay to loot a charity, the entire foundation of charitable giving in America will be destroyed," Musk testified. OpenAI has said it created a for-profit entity to allow it to buy computing power and pay top scientists. Its lawyers have argued that Musk is motivated by a compulsion to control OpenAI and bolster his own AI company, SpaceX unit xAI, which lags OpenAI in user adoption. JUDGE SCOLDS MUSK OVER X POSTS The trial highlights the depth of the rupture ⁠between ⁠Musk and Altman. The two Silicon ⁠Valley icons once partnered in the quest to develop the fast-growing AI technology, a pillar of growth in the U.S. economy that is also fueling anxiety about job losses. The ⁠pair co-founded OpenAI in 2015 to create a benevolent steward of the technology and fend off rivals such as Alphabet Inc's Google. Musk, the chief executive of Tesla and SpaceX, left OpenAI in 2018 after investing $38 million. Microsoft, also a defendant, invested $10 billion in OpenAI in 2023. On Wednesday, Musk, 54, will resume being questioned by his own lawyer. He is then expected to be cross-examined by lawyers ⁠for OpenAI and the other defendants, who have argued that AI safety was not a priority for Musk ⁠when he was with the company and that he derided employees who focused on it "jackasses." Before jurors were seated on Tuesday, U.S. District Judge Yvonne Gonzalez Rogers admonished Musk after OpenAI lawyers complained about posts on X in which Musk assailed Altman as "Scam Altman." Musk, known for brash public commentary, agreed to minimize his social media activity, as did Altman. MUSK SEEKS $150 BILLION IN DAMAGES The trial comes as OpenAI prepares for a potential initial public offering that could value it at $1 trillion, Reuters has reported. The company also faces growing competition from rivals including Anthropic, while a Wall Street Journal report that OpenAI had missed some internal performance targets weighed on the tech-heavy Nasdaq Composite on ⁠Tuesday. Musk is seeking $150 billion in damages from OpenAI and Microsoft, with any award going to OpenAI's charitable arm. He also wants OpenAI to revert to a nonprofit, with Altman and Brockman removed as officers and Altman removed from the board. His claims include breach of charitable trust and unjust enrichment. OpenAI is currently structured as a public benefit corporation, in which the nonprofit and other investors including Microsoft hold stakes. (Reporting by Deepa Seetharaman and Max A. Cherney in Oakland, CaliforniaWriting by Luc CohenEditing by Shri Navaratnam)

Musk and Altman's bitter feud over OpenAI to be laid bare in court

Tesla chief believes Altman broke company's founding agreement - and legal battle promises to be explosive The bitter rivalry between two of the tech world's most powerful men arrives in court this week, as Elon Musk's lawsuit against Sam Altman and OpenAI heads to trial in Oakland, California. The case is set to feature some of the biggest names in Silicon Valley, and its outcome could affect the course of the AI boom. Musk's suit, filed in 2024, focuses on the formative years of OpenAI when he, Altman and others co-founded the artificial intelligence company as a nonprofit with a grand purpose. "OpenAI is a non-profit artificial intelligence research company. Our goal is to advance digital intelligence in the way that is most likely to benefit humanity as a whole, unconstrained by a need to generate financial return," reads the company's mission statement, published in late 2015. Musk alleges that Altman, OpenAI's CEO, broke the company's founding agreement by restructuring the company and converting much of it to a for-profit enterprise. Altman and OpenAI counter that Musk, who left the firm in 2018 amid internal disputes and has since started his own rival AI business, is essentially a sore loser. While the central disagreement may concern convoluted corporate structures and contractual agreements, the trial itself promises to be an explosive high point in the feud between the two tech billionaires. Court filings featuring emails, texts and diary entries involving Musk and Altman have already hinted at dramatic episodes in OpenAI's history that will be detailed in full, and are rife with personal animosities and professional disputes that have shaped the AI industry. The case also carries sizable stakes for OpenAI, which is expected to go public later this year at about a $1tn valuation. Musk is seeking a range of remedies that include the removal of Altman and OpenAI president Greg Brockman and more than $134bn in damages, which Musk says would be redistributed to OpenAI's non-profit arm. Jury selection in the trial starts on Monday at a federal courthouse in Oakland, with Judge Yvonne Gonzalez Rogers overseeing the proceedings. The trial is expected to last two to three weeks. The core of Musk's suit effectively accuses Altman of swindling him with the promise that OpenAI would operate as a nonprofit entity focused on safety and open access to artificial intelligence. Once Altman and OpenAI secured Musk's money - about $38m - and advanced its technology, the company "flipped the narrative and proceeded to cash in" on lucrative deals with Microsoft and the creation of for-profit affiliates, Musk alleges. Musk's complaint opens with the line "Elon Musk's case against Sam Altman and OpenAI is a textbook tale of altruism versus greed". The document quickly goes on to say that Altman and the other defendants deceived and manipulated Musk about the non-profit structure, "preying on Musk's humanitarian concern". "This was all hot-air philanthropy - the hook for Altman's long con," Musk's complaint reads. "The perfidy and deceit are of Shakespearean proportions." Altman and OpenAI fired back just days after Musk filed his suit, publishing a slew of company emails and texts trying to show that Musk knew about the company's plan to restructure all along. OpenAI has vehemently denied all of Musk's allegations, saying he agreed in 2017 that establishing a for-profit entity would be a necessary next step for the company and that Musk is "motivated by jealousy" and "regret for walking away". The company also contests that Musk's funding was an investment, stating that it was instead a tax deductible donation to the nonprofit and does not entitle him to ownership in OpenAI. "Elon has spent years harassing OpenAI through baseless lawsuits and public attacks," OpenAI said in a blogpost criticizing Musk's suit. The company now maintains a dedicated webpage about the lawsuit titled "The truth about Elon Musk and OpenAI", which calls Musk's case a "smear" and "harassment" campaign and is filled with internal correspondence involving Musk. A group of tech entrepreneurs and researchers, including Musk, Altman and Brockman, founded OpenAI in 2015. Altman, then a young but increasingly influential figure in Silicon Valley, originally brought Musk into the project by emailing him with a proposition that the two of them should be the ones who guide AI's future. "Been thinking a lot about whether it's possible to stop humanity from developing AI. I think the answer is almost definitely not," Altman wrote to Musk in May 2015. "If it's going to happen anyway, it seems like it would be good for someone other than Google to do it first." Altman, Musk and the other founders launched OpenAI later that year as a nonprofit organization and began recruiting top AI researchers to work on developing the technology. The relationship with Musk turned sour around 2017, however, after the billionaire grew impatient with progress and made a failed bid to exert more control over the company. He left OpenAI's board in 2018 and stopped providing funding. During OpenAI's post-Musk years, it launched the wildly successful ChatGPT, raised tens of billions of dollars from Microsoft and grew to be one of the world's most valuable private companies. Altman became the face of the AI boom and a power broker within the tech industry. As OpenAI sought even more investment in 2025, the startup gained final approval from regulators to restructure its main business into a for-profit corporation, though one technically still overseen by the original nonprofit. Musk's suit alleges that Altman's dealmaking and maneuvering of OpenAI break with the fundamental mission of the company as a nonprofit to benefit humanity and amount to a breach of charitable trust. The suit also claims Altman and Brockman unjustly enriched themselves through their control of the company. In addition to tens of billions in damages and the removal of Altman and Brockman from OpenAI's board, Musk also wants to reverse the company's restructuring as a for-profit entity - a move that would complicate its plans to go public. Musk is being represented in the case by Marc Toberoff, a Hollywood lawyer with a flair for the dramatic. Altman and OpenAI have taken a more traditional approach and tapped the white-shoe law firm Wachtell, Lipton, Rosen & Katz for their defense. A nine-person jury will hear Musk's numerous breach of contract and unjust enrichment claims over the course of the trial. Along with internal communications from Musk and key executives at OpenAI, a who's who of Silicon Valley that includes Musk, Altman and Microsoft CEO Satya Nadella are also set to testify. The case, which is shaping up to be as much of a public relations fight as it is a legal battle, is also likely to include a fair amount of mud-slinging and salacious details as the former business partners seek to tear each other down. Well before Musk filed his lawsuit, he and Altman were known for publicly trading barbs. The feud ramped up after OpenAI released ChatGPT in 2022. Musk railed on the chatbot, calling it "woke" and told Tucker Carlson on Fox News that OpenAI programmers were "training the AI to lie". Meanwhile, during a podcast with tech journalist Kara Swisher, Altman described Musk as a "jerk". On X, Musk's social media platform, the billionaires have also long mocked and ridiculed each other. Musk has called Altman a "liar", "swindler" and "Scam Altman", while Altman has replied to Musk's posts saying "ambien tweeting is a dangerous game" and taunted his rival by posting a screenshot with the cancellation of a $50,000 Tesla purchase. To the latter jibe, Musk shot back: "You stole a non-profit." The lawsuit has unearthed even more of this caustic face-off between the two tech leaders and their accomplices. Unsealed depositions that OpenAI's lawyers took of Musk show lines of questioning about the billionaire's attendance to Burning Man, a raucous party in the Nevada desert, and his use of "rhino ket", a strong drug cocktail that includes the dissociative anesthetic ketamine. They also deposed Shivon Zilis, an executive at Musk's brain implant company and mother of four of his children, about the nature of their romantic relationship. Zilis served on OpenAI's board from 2020 to 2023. Musk's lawyers have sought to have the testimony excluded from trial saying it's "inflammatory and highly irrelevant". OpenAI's lawyers insist the depositions remain in the record, saying they highlight Musk's interpersonal relationships and "state of mind" during negotiations about the future of the company. Over the course of the trial, it's expected that both sides will continue to keep the temperature high and bring even more of a spectacle to their dispute. In a post on X in January, Musk promised entertainment. "Can't wait to start the trial," he said. "The discovery and testimony will blow your mind."

Elon Musk Asks, 'Do You Want To Set Legal Precedent' That It's Fine To 'Loot A Charity?' As Jury Selectio

On Monday, jury selection wrapped in federal court in Oakland, California, setting the stage for a closely watched legal battle as Elon Musk intensifies accusations that OpenAI abandoned its nonprofit roots for private gain. Musk Escalates Claims Against OpenAI Leadership In a post on X, Musk framed the case as a broader fight over charitable governance. "Do you want to set legal precedent in the United States that it is ok to loot a charity?" Musk wrote. "If so, you undermine all charitable giving in the United States forever." He also criticized Altman and Brockman, claiming, "Scam Altman and Greg Stockman stole a charity. Full stop." OpenAI Rejects Musk's Allegations Meanwhile, OpenAI has called the lawsuit baseless and rooted in competitive motives tied to Musk's own AI company, xAI. "We can't wait to make our case in court where both the truth and the law are on our side," OpenAI said in a statement posted to X, adding that Musk's legal campaign is an effort "to derail a competitor." The company argues Musk was aware of structural discussions before his 2018 departure and says his frustrations were tied partly to control, including reported ambitions to lead OpenAI himself. Why The Trial Could Reshape AI Governance Opening statements are expected on Tuesday, with the case likely to influence not only OpenAI's corporate future but also legal standards surrounding nonprofit-to-for-profit transitions in the rapidly evolving AI sector. At its core, the trial could determine whether OpenAI's transformation was a necessary business evolution -- or, as Musk alleges, a historic betrayal of public trust. In March, OpenAI reached an $850 billion valuation while completing a new $10 billion venture capital funding round. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Photo: Frederic Legrand - COMEO on Shutterstock.com Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Elon Musk trial against Sam Altman to reveal OpenAI power struggle, jury is seated

The bitter legal fight between Elon Musk and the leading artificial intelligence firm, OpenAI, led by Sam Altman, may come down to a few pages in one executive's personal diary. "This is the only chance we have to get out from Elon," wrote Greg Brockman, OpenAI's president and a co-founder, in the fall of 2017. "Is he the 'glorious leader' that I would pick?" Brockman's diary entry is part of the thousands of pages of internal documents revealed in court since Musk, one of the original co-founders of OpenAI, sued the company, its chief executive Altman and Brockman in 2024. Jury selection was completed on Monday in the Oakland, California, federal court for a high-stakes trial over the future of OpenAI, known for the ChatGPT chatbot, and perhaps the future of artificial intelligence itself. Musk is seeking $150 billion in damages from OpenAI and Microsoft, one of its largest investors, according to a person involved in the case, with proceeds going to OpenAI's charitable arm. He will try to convince the nine-person jury that Altman and Brockman conned him into investing in OpenAI, by straying from its founding mission as a nonprofit to focus on profit rather than helping society.

Musk Drops Fraud Claims Against OpenAI, Altman Ahead of Trial

Musk is seeking damages and wants a court order restoring OpenAI's status as a nonprofit research organization and removing Altman and Brockman from their roles. Elon Musk dropped his fraud claims against OpenAI and co-founders Sam Altman and Greg Brockman, narrowing the scope of his lawsuit against his business rivals on the eve of trial. US District Judge Yvonne Gonzalez Rogers on Friday agreed to Musk's request to "streamline" the case, leaving just two claims to proceed to trial of the 26 included in his November 2024 complaint. Jury selection is set for Monday in federal court in Oakland, California. Musk alleges the artificial intelligence startup abandoned its founding mission as a nonprofit to benefit humanity when it took billions of dollars in backing from Microsoft Corp. and planned its restructuring as a for-profit business. Musk is seeking as much as $134 billion in damages that he has asked be directed to OpenAI's charitable arm, if he wins at trial. He also wants a court order restoring the firm's status as a nonprofit research organization and wants a judge to order that Altman and Brockman both be removed from their roles at OpenAI. Altman is chief executive officer and Brockman serves as president. OpenAI complained to the judge two weeks ago that the remedies proposed by Musk were an 11th-hour surprise and accused the world's richest person of a "legal ambush" with the trial looming. OpenAI, Altman, Brockman and Microsoft have all denied wrongdoing, saying Musk's claims are baseless harassment. The trial will be divided into two phases. During the first portion, a jury will hear arguments and testimony about Musk's allegations, which now focus on two claims -- unjust enrichment and breach of charitable trust. The panel will issue an "advisory verdict" that will not be binding on Gonzalez Rogers, who will ultimately decide whether Musk proved his claims. In the second part of the proceedings, Gonzalez Rogers will hear arguments on the remedies Musk is seeking and issue a ruling. Musk co-founded OpenAI with Altman and others in 2015, but the former business partners have become bitter foes in recent years. Musk left OpenAI's board in 2018 and in 2023 co-founded the artificial intelligence company xAI, which has become one of OpenAI's main rivals. Last February, OpenAI rejected Musk's unsolicited bid to acquire the assets of the nonprofit that controls the company for $97.4 billion. Months later, the company completed its for-profit restructuring plan, paving the way for it to raise more capital and potentially go public. The case is Musk v. Altman, 4:24-cv-04722, US District Court, Northern District of California (Oakland).

On witness stand, Elon Musk accuses Sam Altman's lawyer of trying to trick him - The Economic Times

Elon Musk on Wednesday accused a lawyer for Sam Altman of trying to trick him during cross-examination at a high-stakes trial over Musk's lawsuit alleging OpenAI ditched its mission to build artificial intelligence for the public good. William Savitt, a lawyer for OpenAI, told Musk his questions about the benefits Musk reaped by donating $38 million to OpenAI were simple, and that Musk's responses should be as well. "Your questions are not simple. They're designed to trick me," Musk, the CEO of Tesla and SpaceX, said in his second day of testimony before a nine-person jury in Oakland, California, federal court. Musk has accused OpenAI, its co-founder and Chief Executive Altman, and its President Greg Brockman of wooing his donations by promising to build a nonprofit to develop AI responsibly, ⁠before pivoting to ⁠create a for-profit entity in 2019 to enrich themselves. OpenAI has argued that Musk is motivated by a compulsion to control the company. Savitt told jurors during his opening statement on Monday that Musk helped finance OpenAI's early growth and pushed it to become a for-profit business, one he might eventually lead as CEO. OpenAI has said it created a for-profit entity in 2019 to allow it to buy computing power and pay top scientists. Seated in the courtroom audience, Altman at times bent his head down, and at other times looked at the evidence being shown on a screen. Musk says Altman not 'honest' The trial highlights the depth of the rupture between Musk and Altman. The two Silicon Valley icons once partnered in the quest to develop the fast-growing AI technology, a pillar of growth in the U.S. economy that is also fueling anxiety about job losses. The pair co-founded OpenAI in ⁠2015 to create a benevolent steward of the technology and fend off rivals such as Alphabet's Google. Musk left OpenAI in 2018. Microsoft, also a defendant, invested $10 billion in OpenAI in 2023. Earlier on Wednesday, jurors saw an email Musk sent to Altman and Brockman in 2017, referring to himself as a "fool" for providing ⁠them funding for what he believed was a nonprofit venture. "I felt like they had not been honest with me," Musk said under questioning by his lawyer, Steven Molo. "What they really wanted to do was create a for-profit where they had as much shareholder ownership as possible." Musk, wearing a dark suit over a white shirt, glanced at the jury occasionally as he spoke. Savitt asked Musk whether he received tax benefits from his donations. Musk called the question misleading, comparing Savitt's yes-or-no questions to asking someone, "Have you stopped beating your wife?" That comment prompted U.S. District Judge Yvonne Gonzalez Rogers to step in. "We're not going to go there," the judge said. OpenAI says Musk seeks to bolster xAI Musk testified that Microsoft's investment made him concerned the tech behemoth had "captured" OpenAI. "At a $10 billion scale, there's no way Microsoft is giving that as a charitable donation," Musk said under questioning by Molo. Jurors saw text messages Musk and Altman exchanged after news broke of Microsoft's potential investment. Musk told Altman the move felt like a "bait and switch." Altman responded, "I agree that this feels bad," and then offered to allow Musk to buy a stake in OpenAI. "Frankly, it felt like a bribe," Musk testified. Musk testified that he left OpenAI's board to focus on SpaceX and Tesla. He said he stopped funding OpenAI in 2020. Lawyers for OpenAI ⁠and other defendants have argued that Musk is seeking to bolster his own AI company, SpaceX unit xAI, which lags OpenAI in user adoption. They have also said AI safety was not a priority for Musk when he was with the company. Musk acknowledged on the stand that xAI had a smaller market share than OpenAI. Musk seeks $150 billion in damages The trial comes as OpenAI prepares for a potential initial public offering that could value it at $1 trillion, Reuters has reported. The company also faces growing competition from rivals, including Anthropic, while a Wall Street Journal report that OpenAI had missed some internal performance targets weighed on the tech-heavy Nasdaq Composite on Tuesday. Musk is seeking $150 billion in damages from OpenAI and Microsoft, with any award going to OpenAI's charitable arm. He also wants OpenAI to revert to a nonprofit, with Altman and Brockman removed as officers and Altman removed from the board. His claims include breach of charitable trust and unjust enrichment. OpenAI is currently structured as a public benefit corporation, in which the nonprofit and other investors, including Microsoft, hold stakes.

Jury selection starts in Elon Musk's legal battle with OpenAI

Oakland (United States) (AFP) - Elon Musk's courtroom showdown with Sam Altman got underway here Monday with the start of jury selection in a trial over the billionaire's accusation that his OpenAI co-founders betrayed a non-profit mission to build artificial intelligence for the good of humanity and not for the money. The legal clash in a courtroom across the bay from San Francisco pits the world's richest person against a startup Musk once backed and now competes with in the booming AI sector. OpenAI's ChatGPT is a formidable rival to the chatbot Grok, made by Musk's xAI lab. "This is a tech soap opera that all investors will be watching," Wedbush analyst Dan Ives said in a note to investors. "There will be a lot of dirt and slings thrown around in court between Musk and Altman and that is not a good thing for anyone involved...but Musk has made this personal." Jurors were asked their thoughts of Musk and Altman, and whether they could put aside any bias while considering evidence at trial. "Elon doesn't care about people, much like our president," said a US retiree being considered for the panel. An Oakland city employee in the jury pool referred to Musk as "a jerk." In contrast, Altman's name struck potential jurors as familiar but did not evoke strong opinion. While Musk's lawsuit is part of a feud between him and OpenAI Chief Executive Sam Altman, it spotlights a debate as to whether AI should ultimately serve to benefit a privileged few or society as a whole. Court filings lay out how Altman convinced Musk to back OpenAI in 2015, acting as a co-founder for a non-profit lab whose technology "would belong to the world." Musk pumped millions of dollars into the lab, which he subsequently left. However, OpenAI established a commercial subsidiary, as it needed hundreds of billions of dollars for data centers to power its technology. Microsoft has poured billions of dollars into OpenAI and its CEO Satya Nadella is among those slated to testify at the trial. Benevolence or power? Musk argues in his lawsuit that he was deceived about OpenAI's mission being altruistic. He fired off a social media post on Monday calling the OpenAI chief "Scam Altman". San Francisco-based OpenAI has countered in court filings that its break-up with Musk was due to his quest for absolute control rather than its nonprofit status. "This case has always been about Elon generating more power and more money for what he wants," OpenAI said in a recent X post. "His lawsuit remains nothing more than a harassment campaign that's driven by ego, jealousy and a desire to slow down a competitor." The startup noted that days after Musk entered the AI race in 2023 he called for a six-month moratorium on development of advanced AI. The judge presiding over the trial will decide by mid-May -- guided by an advisory jury's findings -- whether OpenAI broke a promise to Musk in a drive to lead in AI, or just smartly rode the technology to market dominance. Along with calling for OpenAI to be forced to revert to a pure nonprofit, Musk's suit urges the ouster of Altman and co-founder Greg Brockman, who is the startup's president. Musk, who had sought as much as $134 billion in damages, has since renounced any personal benefit, pledging to redirect any award to the OpenAI nonprofit. Judge Yvonne Gonzalez Rogers has reserved the right to determine any remedies herself, without the jury's input. OpenAI now has a hybrid governance structure giving its nonprofit foundation control over a for-profit arm. Musk, who gutted the trust and safety team at Twitter after buying the social media platform that he renamed X, faces the challenge of convincing a jury and a judge that the company behind ChatGPT was built on a lie.

Musk and Altman Show up for Opening Statements in Trial That Could Reshape AI's Future

OAKLAND, Calif. (AP) -- OpenAI co-founders Elon Musk and Sam Altman have shown up for Tuesday's opening statements in a high-stakes trial revolving around a bitter feud between the former friends that could reshape the future development of artificial intelligence. The bickering billionaires' early-morning appearances at the Oakland, California, federal courthouse foreshadow the start of a legal drama that is expected to brim with intrigue and potentially embarrassing details about the two tech moguls. The jury was elected Monday and the trial is scheduled to take three weeks. After the lawyers provide an overview of their respective cases, testimony will begin presenting Musk's side of a tale chock full of alleged betrayal, deceit and ambition that caused OpenAI to pivot from its founding mission as an altruistic startup to a capitalistic venture now valued at $852 billion. Musk, the world's richest person with an estimated fortune of $778 billion, is among the witnesses who will testify during the trial. His presence on Tuesday may mean that he will be among the first people to take the witness stand. Altman, OpenAI's CEO, is also expected to testify at the trial, along with Microsoft CEO Satya Nadella, one of the technology leaders who helped fund the late 2022 release of ChatGPT, the chatbot that unleashed the current AI boom that has propelled the stock market to record heights.

Here's what OpenAI's lawyer argued in his opening statement.

Mr. Musk was the first witness called in a case that could reshape the future of the artificial intelligence race -- and one that an OpenAI lawyer said was filed because the world's richest person "didn't get his way." Mr. Musk, Sam Altman and other A.I. researchers founded OpenAI as a nonprofit in 2015, vowing to freely share its technology with the rest of the world. But Mr. Musk left the start-up in 2018 after a power struggle with Mr. Altman -- and before the public launch of ChatGPT in 2022 catapulted OpenAI to commercial success. Mr. Musk sued OpenAI in 2024, claiming that the nonprofit he funded with his own large donations took advantage of his financial resources. He also argued that OpenAI breached its founding agreement by putting commercial interests over the public's. Steven Molo, Mr. Musk's lead counsel, told the jury in his opening statement that OpenAI had been created "for the benefit of all mankind" and accused the company's current leaders of effectively stealing from the public, an argument Mr. Musk echoed. "It is not OK to steal a charity," Mr. Musk said in testimony that also touched on "Star Trek," "The Terminator," and his brain-chip company, Neuralink. If Mr. Altman and OpenAI win, he said, it would "give license to looting every charity in America." OpenAI's lead counsel, William Savitt, said in his opening statement that Mr. Musk's case was not an altruistic endeavor. "We're here because Mr. Musk didn't get his way at OpenAI," he said. He noted that the original OpenAI nonprofit continues to oversee the for-profit company, and was working to redistribute billions of dollars generated by the commercial operation. Mr. Musk is asking for more than $150 billion in damages from OpenAI and Microsoft, OpenAI's primary partner, and said any damages would be shared with the OpenAI nonprofit. He is also asking the court to remove Mr. Altman from the start-up's board and stop a shift the company recently made to operate as a for-profit company. If Mr. Musk loses, Mr. Altman would likely solidify control of OpenAI, which is now valued at about $730 billion. And the company would be free to pursue a data center expansion plan that could cost hundreds of billions of dollars as the A.I. start-up appears headed toward one of the biggest initial public offerings in history. (The New York Times has sued OpenAI and Microsoft, claiming copyright infringement of news content related to A.I. systems. The two companies have denied the suit's claims.)

Musk's OpenAI Trial Puts Sam Altman And Greg Brockman Under Spotlight - Meta Platforms (NASDAQ:META), Mic

Reuters reported the trial record includes internal papers and personal writings used to argue over whether OpenAI drifted from its original nonprofit purpose into a profit-first enterprise. Jury selection is set for Monday, with opening statements expected on Tuesday. Elon Musks Bold Move Against OpenAI Leadership Musk's requested remedies go beyond money, targeting OpenAI's chain of command and governance structure. His filing asks a judge to remove Sam Altman from the OpenAI nonprofit board and to push both Altman and Brockman out of officer roles at the for-profit entity. The damages claim is also enormous, with one figure cited at $150 billion that would flow to OpenAI's charitable arm rather than to Musk personally. Earlier court papers described a separate ceiling of up to $134 billion. What Will This Trial Mean For AIs Future? Internal material has entered public view, including a 2017 diary entry from Brockman that reads: "This is the only chance we have to get out from Elon," and, later, "Is he the 'glorious leader' that I would pick?" Reuters said the disclosures offer a granular look at how AI executives thought about control, incentives, and strategy as OpenAI scaled. OpenAI's attorneys say Musk is using the lawsuit to gain leverage and to bolster his rival lab, xAI, rather than to protect a mission statement. OpenAI called the case "nothing more than a harassment campaign that's driven by ego, jealousy and a desire to slow down a competitor." Image: Shutterstock This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Elon Musk, Sam Altman arrive in court for OpenAI trial - The Korea Times

OAKLAND, California -- A trial that could help shape the future of artificial intelligence begins on Tuesday, with billionaires Elon Musk and Sam Altman at odds over the evolution of ChatGPT maker OpenAI from a nonprofit to a profit-seeking juggernaut worth hundreds of billions of dollars. Opening statements in Musk's civil lawsuit against OpenAI and Altman will take place in the Oakland, California, federal court, following the selection on Monday of nine jurors. Musk claims that Altman and Greg Brockman, respectively OpenAI's chief executive and president, betrayed him and the public by abandoning the company's mission to be a benevolent steward of AI for the benefit of humanity, and turning it into a "wealth machine" for themselves and investors. The world's richest person is seeking $150 billion in damages from OpenAI and Microsoft, one of its largest investors, with proceeds going to OpenAI's charitable arm. He also wants OpenAI to revert to a nonprofit, with Altman and Brockman removed as officers and Altman removed from its board. Both Musk and Altman arrived at the courthouse early Tuesday for opening statements. Musk, the Tesla and SpaceX founder, has said he provided about $38 million of seed money to OpenAI for its original mission, only to see OpenAI create a for-profit entity in March 2019, a little over a year after he left its board. OpenAI countered that Musk knew about and supported the transformation, and sued only after failing to become CEO, and starting his own AI company to stunt its growth. Musk is no longer seeking damages for himself as he pursues breach of charitable trust and unjust enrichment claims. U.S. District Judge Yvonne Gonzalez Rogers has said she wants jurors to begin deliberations on the defendants' liability by May 12. The jurors include nurses, city workers and retirees. If they find the defendants liable, both sides will argue possible remedies to the judge. Musk, Altman and Microsoft chief Satya Nadella are among the witnesses expected to testify, with Musk taking the stand as soon as this week. Egos and personalities Musk and Altman co-founded OpenAI in 2015 with a goal of developing AI to benefit humanity and fend off rivals such as Google. The trial could offer a window into some of the egos and personalities that shaped OpenAI as it evolved from a nonprofit research lab in Brockman's apartment to a company worth more than $850 billion. It risks complicating OpenAI's plans for a potential initial public offering by casting doubt on its leadership, and could also intensify Americans' fears about AI technology more broadly. OpenAI has argued that Musk was motivated by jealousy in trying to undermine its growth and prop up his own xAI, which he founded in 2023 shortly after OpenAI launched ChatGPT. It has said Musk was involved in discussions to create OpenAI's new structure and demanded to be CEO. Microsoft has denied having colluded with OpenAI and says it teamed up with OpenAI only after Musk left. OpenAI faces growing competition from rivals including Anthropic, and is spending billions on computational resources. A potential IPO could value the company at $1 trillion, Reuters has reported. Musk's xAI trails far behind OpenAI in usage. He has folded that business into his rocket company SpaceX, whose own potential IPO this year could be the largest ever. Last fall, OpenAI overhauled its structure again to become a public benefit corporation, in which the nonprofit and other investors including Microsoft hold stakes. The nonprofit holds a 26 percent stake, plus warrants if OpenAI hits certain valuation targets. A public benefit corporation could make OpenAI more investor-friendly while retaining its charitable origins.

Altman Versus Musk: How the Biggest Feud In Tech Landed in Court

At every point in the tech industry's evolution, chief executives have found some reason to fall out. Bill Gates and Steve Jobs clashed during the early scramble to dominate personal computing. Jobs felt betrayed by Eric Schmidt when Google launched Android to compete with the iPhone. And Elon Musk famously challenged Mark Zuckerberg to a cage match that never happened. Even by those standards, the clash between Musk and Sam Altman stands out. The world's richest person has used every tool at his disposal to undermine Altman's leadership at OpenAI, the company they founded together more than a decade ago. Musk launched a rival artificial intelligence startup, mobilized his wealthy allies last year to make an unsolicited and unsuccessful $97 billion bid for the nonprofit that controls the ChatGPT maker, and is waging a legal battle to challenge OpenAI's conversion to a for-profit company. Altman, meanwhile, has poked fun at Musk's AI products and called him a bully. The tensions between the two billionaires are set to be on full display this coming week as Musk's case against OpenAI and its backer Microsoft Corp. heads to trial. If Musk prevails, it could cost OpenAI a significant amount of money and trigger an overhaul of the heavily lossmaking AI giant. Whatever the outcome, Musk's legal campaign has cast a cloud of uncertainty over Altman's business at a moment when it's fighting resurgent competitors and preparing to go public. Were Altman and Musk ever close? Altman, 41, and Musk, 54, did not come up together in the tech industry. Like many entrepreneurs of a certain generation, Altman revered Musk for his bold bets on electric cars and reusable rockets. "I grew up with Elon as a mega hero," Altman said in December 2024. Altman cultivated a long list of influential backers while running startup accelerator Y Combinator. In 2015, he helped to launch OpenAI as a nonprofit with some of his contacts, including Musk, who had long expressed concern about the risks posed by powerful AI systems. "I've had many conversations with Sam and with Reid [Hoffman], Peter Thiel and others," Musk said in 2015. "And we were just thinking, 'Is there some way to ensure, or increase, the probability that AI would develop in a beneficial way?'" How did Altman and Musk fall out? OpenAI's team soon recognized they would need to raise billions to build AI -- an amount they thought they were unlikely to secure using a pure nonprofit model. In early 2017, OpenAI decided to create a for-profit entity that would be overseen by the nonprofit. Musk, however, had a different approach in mind, according to the company. "As we discussed a for-profit structure in order to further the mission, Elon wanted us to merge with Tesla or he wanted full control," OpenAI later said, referring to Musk's electric-car company. Specifically, Musk wanted "majority equity, initial board control, and to be CEO." OpenAI did not cede control to Musk and he stepped down from the startup's board in early 2018. The next year, Altman officially became CEO of OpenAI. Put another way: Musk wanted to be the boss of OpenAI, and Altman got the job. Six years later, Musk sued Altman and OpenAI, alleging they violated the startup's founding mission by putting profit ahead of benefitting humanity. Musk has also criticized OpenAI's deal with Microsoft, its biggest financial backer, claiming the partnership undermines its mission to create open-source technology that's not subject to corporate priorities. Doesn't Musk have lots of tech feuds? In addition to his Zuckerberg cage match challenge, Musk has been publicly critical of Microsoft co-founder Bill Gates for reportedly shorting Tesla stock. By his own account, Musk also jeopardized a long-term friendship with Google co-founder Larry Page after poaching AI researcher Ilya Sutskever from the company to work at OpenAI. Musk has said the two men also argued over the risks of AI destroying humanity, with Page reportedly calling Musk a "speciesist" for favoring people over digital lifeforms. That was "the last straw," Musk said later. What has Musk said about Altman specifically? He has been unsparing in his criticisms of Altman, attacking not just his leadership at the company but his character. Musk has called Altman a "liar" and a "swindler." Musk has also repeatedly hurled a derisive nickname at him: "Scam Altman." And what has Altman said about Musk? Altman has alternated between praising Musk for his business accomplishments and pushing back at the billionaire's various claims. When asked by one user on social media about striking this balance, Altman wrote: "Both are true! i dont think he's a nice person or treating us fairly but you have to respect the guy and he pushes all of us to be more ambitious." Since Musk's $97 billion offer to control OpenAI last year, Altman's rhetoric has been less measured. The OpenAI CEO suggested Musk was simply trying to slow down a competitor and said he didn't think Musk was "a happy person." Altman added: "Probably his whole life is from a position of insecurity -- I feel for the guy." How disruptive was Musk's bid for OpenAI? Even though OpenAI rejected Musk's unsolicited bid, the billionaire's offer -- and his litigious tactics -- added to uncertainty around the startup's plans to become a more conventional, profit-making enterprise. Under state laws in California, where OpenAI is headquartered, and Delaware, where it's registered, the company needed to jump through hoops in order to convert into a for-profit business. It had to assess a "fair value" for the nonprofit's control of the for-profit business and compensate the nonprofit accordingly as part of the restructuring process. Legal experts said Musk's offer may have been part of this calculation as it could impact the valuation. Ultimately, OpenAI's nonprofit ended up receiving a 26% equity stake in the company after the restructuring -- a stake that was worth more than $180 billion as of earlier this year. What are the stakes of Musk's lawsuit against OpenAI? Musk said in a court filing that the goal of the lawsuit is to "unwind OpenAI's for-profit conversion and restructuring" and to seek a court order restoring the firm's status as a nonprofit research organization. Such a move would likely rattle current and future investors in OpenAI, and would risk derailing the startup's plans to go public as soon as this year. Musk previously indicated that he planned to seek as much as $134 billion in damages from OpenAI and Microsoft -- a significant sum even for an AI developer that has raised an unprecedented amount of capital to date. He later said any damages should be awarded to OpenAI's charitable arm. And in perhaps his most personal dig, Musk has asked that Altman should be removed from his roles at OpenAI as part of the legal challenge. "Removal of a charity's officers and directors is a common remedy where those individuals fail to protect or carry out the charity's public mission," Musk argued in the case that will be on trial in federal court in Oakland, California. Does Musk's own AI company pose a challenge to OpenAI? The billionaire, who has repeatedly raised alarms about the existential threat of artificial intelligence, launched xAI in 2023 as an alternative to OpenAI with the vague mission to "understand the true nature of the universe." But its key differentiator is embracing the racy and profane, whether it be "romantic" AI companions or irreverent chatbot conversations in "spicy" mode. Earlier this year, xAI also faced a global uproar after its Grok chatbot was used to generate nonconsensual explicit images. Altman's company remains a dominant force in AI, but xAI is now a significant competitor. It's made its first flagship product "open weight," making its internal parameters open for developers to tweak and share, contrary to OpenAI's proprietary approach. Proponents of open-weight AI models argue that they boost accountability of AI developers and reduce the risk that the market will be dominated by a handful of powerful companies. Get the Tech Newsletter bundle. Get the Tech Newsletter bundle. Get the Tech Newsletter bundle. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Bloomberg's subscriber-only tech newsletters, and full access to all the articles they feature. Plus Signed UpPlus Sign UpPlus Sign Up By continuing, I agree to the Privacy Policy and Terms of Service. Earlier this year, Musk merged xAI with his rocket-making company, SpaceX. Among other things, the move gave xAI far more resources to invest in data centers and chips, and made it more competitive in going after top AI talent. In April, SpaceX said it had reached an agreement giving it the right to acquire AI startup Cursor for $60 billion later this year or to pay $10 billion for the companies' work together. The deal is part of Musk's bid to catch up to OpenAI and Anthropic in the lucrative market for AI coding tools. Crucially, the merger also means Musk's xAI will almost certainly beat Altman's OpenAI in reaching the public markets. SpaceX has already filed confidentially for an initial public offering, putting it on track for a June listing. Musk has also increased his influence in Washington under the Trump administration, adding some uncertainty at times for Altman and OpenAI as they court defense contracts and government support for massive infrastructure projects. Altman has said he doesn't believe Musk will use his political power against rivals, but that doesn't mean the Tesla CEO is eager to play nice either. After Altman and other tech executives announced plans for a $500 billion infrastructure venture during an event at the White House last January, Musk quickly raised doubts about financing for the project. President Trump, at least, seemed to understand the real meaning behind the critique. Musk "hates one of the people," Trump said. "But I have certain hatreds of people too."

Elon Musk returns to witness stand in trial over OpenAI's future

Elon Musk is on the witness stand in a major trial. He is suing OpenAI, claiming the company has strayed from its original mission. Musk alleges OpenAI prioritised profits over its commitment to humanity. The trial highlights a deep rift between Musk and OpenAI's leaders. Musk seeks significant damages and wants OpenAI to return to its nonprofit roots. Elon Musk returned to the witness stand on Wednesday in a high-stakes trial over a lawsuit he brought against OpenAI, alleging the company ditched its mission to be a responsible steward of AI for humanity in pursuit of profits. The world's richest person's testimony resumed with more questioning by his personal lawyer, Steven Molo. Later, he is expected to be cross-examined by a lawyer for OpenAI, which has argued that Musk is motivated by a compulsion to control the company. On Tuesday, ⁠Musk sharply ⁠criticized the 2019 decision by the nonprofit OpenAI's co-founder and Chief Executive Sam Altman and its President Greg Brockman to create a for-profit entity. "If we make it OK to loot a charity, the entire foundation of charitable giving in America will be destroyed," Musk told a nine-person jury in Oakland, California, federal court. OpenAI has said it created a for-profit entity to allow it to buy computing power and pay top scientists. JUDGE SCOLDS MUSK OVER X POSTS The trial highlights the depth of the rupture between Musk and Altman. The two Silicon Valley icons once partnered in the quest ⁠to develop the fast-growing AI technology, a pillar of growth in the U.S. economy that is also fueling anxiety about job losses. The pair co-founded OpenAI in 2015 to create a benevolent steward of the technology ⁠and fend off rivals such as Alphabet Inc's Google. Musk, the chief executive of Tesla and SpaceX, left OpenAI in 2018 after investing $38 million. Microsoft, also a defendant, invested $10 billion in OpenAI in 2023. Lawyers for OpenAI and other defendants have argued that Musk is seeking to bolster his own AI company, SpaceX unit xAI, which lags OpenAI in user adoption. They have also said AI safety was not a priority for Musk when he was with the company and that he derided employees who focused on it as "jackasses." Before jurors were seated on Tuesday, U.S. District Judge Yvonne Gonzalez Rogers admonished Musk after OpenAI lawyers complained about posts on X in which Musk assailed Altman as "Scam Altman." Musk, known for brash public commentary, agreed to minimize his social media activity, as did Altman. MUSK SEEKS $150 BILLION IN DAMAGES The trial comes as OpenAI prepares for a potential ⁠initial public offering that could value it at $1 trillion, Reuters has reported. The company also faces growing competition from rivals including Anthropic, while a Wall Street Journal report that OpenAI had missed some internal performance targets weighed on the tech-heavy Nasdaq Composite on Tuesday. Musk is seeking $150 billion in damages from OpenAI and Microsoft, with any award going to OpenAI's charitable arm. He also wants OpenAI to revert to a nonprofit, with Altman and Brockman removed as officers and Altman removed from the board. His claims include breach of charitable trust and unjust enrichment. OpenAI is currently structured as a public benefit corporation, in which the nonprofit and other investors including Microsoft hold stakes.

Elon Musk's lawsuit against OpenAI over nonprofit claims heads to trial

Tech billionaire Elon Musk's lawsuit accusing OpenAI of abandoning its non-profit mission on Monday advances with jury selection in California. The case pits the world's richest person against a startup he once backed and now rivals in the artificial intelligence sector. Elon Musk's lawsuit accusing high-profile artificial intelligence company OpenAI of betraying its non-profit mission heads for trial on Monday with the selection of jurors. The legal clash in a courtroom across the bay from San Francisco pits the world's richest person against a startup Musk once backed and now competes with in the booming artificial intelligence (AI) sector. OpenAI's ChatGPT is a formidable rival to the chatbot Grok, made by Musk's xAI lab. While Musk's lawsuit is part of a feud between him and OpenAI Chief Executive Sam Altman, it spotlights a debate as to whether AI should ultimately serve to benefit a privileged few or society as a whole. Court filings lay out how Altman convinced Musk to back OpenAI in 2015, acting as a co-founder for a non-profit lab whose technology "would belong to the world." Read moreUS jury finds tech tycoon Elon Musk misled Twitter shareholders Musk pumped millions of dollars into the lab, which he subsequently left. However, OpenAI established a commercial subsidiary as it needed hundreds of billions of dollars for data centers to power its technology. Microsoft has poured billions of dollars into OpenAI and its CEO Satya Nadella is among those slated to testify at the trial. Musk argues in his lawsuit that he was deceived about OpenAI's mission being altruistic. San Francisco-based OpenAI has countered in court filings that its break-up with Musk was due to his quest for absolute control rather than its nonprofit status. "This case has always been about Elon generating more power and more money for what he wants," OpenAI said in a recent X post. "His lawsuit remains nothing more than a harassment campaign that's driven by ego, jealousy and a desire to slow down a competitor." The startup noted that days after Musk entered the AI race in 2023 he called for a six-month moratorium on development of advanced AI. Read moreMusk snubs Paris prosecutors' summons over X and Grok The judge presiding over the trial will decide by mid-May - guided by an advisory jury's findings - whether OpenAI broke a promise to Musk in a drive to lead in AI or just smartly rode the technology to glory. Along with calling for OpenAI to be forced to revert to a pure nonprofit, Musk's suit urges the ouster of Altman and co-founder Greg Brockman, who is startup president. Musk, who had sought as much as $134 billion in damages, has since renounced any personal benefit, pledging to redirect any award to the OpenAI nonprofit. Judge Yvonne Gonzalez Rogers has reserved the right to determine any remedies herself, without the jury's input. OpenAI now has a hybrid governance structure giving its nonprofit foundation control over a for-profit arm. Musk, who gutted the trust and safety team at Twitter after buying the social media platform that he renamed X, faces the challenge of convincing a jury and a judge that the company behind ChatGPT was built on a lie.

Elon Musk's Trial Against Sam Altman to Reveal the Ongoing Power Struggle for OpenAI

By Deepa Seetharaman and Jonathan Stempel April 27 (Reuters) - The bitter legal fight between Elon Musk and the leading artificial intelligence firm, OpenAI, ⁠led ⁠by Sam Altman, may come down to a few pages in ⁠one executive's personal diary. "This is the only chance we have to get out from Elon," wrote Greg Brockman, OpenAI's president and a co-founder, in the fall of 2017. "Is he the 'glorious leader' that I would pick?" Brockman's diary entry is part of the thousands of pages of internal documents revealed in court since Musk, one of the original co-founders of OpenAI, sued the company, its chief executive Altman and Brockman in 2024. Musk is seeking $150 billion in damages from OpenAI and Microsoft, one of its largest investors, according to a person involved in the case, with proceeds going to OpenAI's charitable arm. Jury selection for the trial is planned for Monday in the Oakland, California, federal court, with opening arguments expected on Tuesday. The documents offer ⁠a rare window into egos ⁠and personalities that have shaped OpenAI as it evolved from a nonprofit research lab in Brockman's apartment to a tech giant worth more than $850 billion. They also shed light on how the CEOs with the most power to shape generative AI think about the technology. The trial risks complicating OpenAI's plans for a potential initial public offering by casting doubt on its leadership. A drumbeat of unflattering disclosures could also intensify Americans' growing pessimism about AI technology more broadly. The case centers on Musk's claim that OpenAI, Altman and Microsoft betrayed OpenAI's original mission as a nonprofit to benefit humanity by forming a for-profit entity in March 2019, 13 months after Musk left the OpenAI board. Musk said the defendants kept him in the dark about their plans, exploited his name and financial support to create a "wealth machine" for themselves, and owe damages for having conned him and the ⁠public. He also ⁠wants OpenAI to revert to a nonprofit, for ⁠Altman and Brockman to be removed as officers, and for Altman to be removed from its board, among other measures. OpenAI's lawyers counter that Musk is motivated by a compulsion to control OpenAI and prop up his own AI lab xAI, which he founded in 2023 shortly after OpenAI launched ChatGPT and ⁠sparked the AI boom. The company says Musk was involved in discussions to create OpenAI's new structure and demanded to be CEO. Microsoft, also a defendant, denies that it colluded with OpenAI and says it teamed up with OpenAI only after Musk left. HEAVY HITTERS EXPECTED TO TESTIFY Heavy hitters in Silicon Valley including Musk, Altman and Microsoft CEO Satya Nadella are expected to testify in person. Shivon Zilis, a former OpenAI board member who is also mother to four of Musk's children, is likely to be a key witness, with OpenAI lawyers arguing that she funneled information about OpenAI to Musk. The trial comes at a sensitive time for both sides. OpenAI faces unprecedented competition from rivals including Anthropic, and is spending billions on computational resources. It is also preparing ⁠for a potential blockbuster IPO that could value the company at $1 trillion, Reuters has reported. Musk's companies face similar pressures. His xAI, now folded into his rocket company ⁠SpaceX, trails far behind OpenAI in usage. SpaceX also plans to go public this year in what could be the biggest IPO ever. According to court papers, Musk gave about $38 million of seed money to OpenAI between 2016 and 2020, mostly before he left the board. In 2019, OpenAI restructured as a for-profit unit governed by the nonprofit. That let it accept money from outside investors while being accountable for the nonprofit's original mission. Last fall, OpenAI overhauled its structure again to become a public benefit corporation, in which the nonprofit and other investors including Microsoft hold stakes. The nonprofit holds a 26% stake as well as additional warrants if OpenAI hits certain valuation targets. Musk's lawyers calculated damages by multiplying OpenAI's valuation and a portion of the nonprofit's stake that could be attributed to Musk's contributions. His team says between 50% and 75% of the nonprofit's stake can be attributed to Musk. A 'MANHATTAN PROJECT FOR AI' Musk and Altman co-founded OpenAI with a goal of developing AI to benefit humanity and fend off rivals such as Google. Altman approached Musk about the idea in May 2015, branding it the "Manhattan Project for AI," court documents show. Musk's involvement helped OpenAI land top researchers like now-former chief scientist Ilya Sutskever. By mid-2017, Musk began questioning OpenAI's viability, ⁠at one point holding back promised funds after clashing with Altman, Brockman and Sutskever, according to court filings. One source of tension was that Musk wanted to be CEO, emails show, which made other co-founders uneasy. Around the same time, Brockman appeared frustrated by Musk's stance, and wondered if turning OpenAI into a profit-making venture could also make him rich. "Financially, what will take me to $1B?" he wrote in his diary. "Accepting Elon's terms nukes two things: our ability to choose (though maybe we could overrule him) and the economics." Musk's lawyers highlighted the entry to show that OpenAI's leaders were more motivated by profit than the mission. By January 2018, Musk appeared to have given up. "OpenAI is on a path of certain failure relative to Google," Musk emailed. In late 2022, OpenAI launched ChatGPT. (Reporting by Deepa Seetharaman in San Francisco and Jonathan Stempel in New York; Editing by Ken Li, Noeleen Walder and Nick Zieminski)

Elon Musk vs. OpenAI: Kalshi Traders Push Odds to 45% as Trial Date Approaches - Microsoft (NASDAQ:MSFT)

On Sunday, prediction market Kalshi traders kept repricing the contract on whether Elon Musk wins his lawsuit against OpenAI, with the market swinging between near coin-flip levels and deeper doubt as the April 28, 2026 trial date closes in. The prediction markets are signaling a toss-up in Elon Musk's legal battle against OpenAI. On Kalshi, traders have pushed the odds to nearly 45%, suggesting growing belief that Musk could prevail in his lawsuit against the AI company he co-founded. The jury selection is slated to start Monday in the U.S. District Court for the Northern District of California, with opening statements expected Tuesday. The platform's rundown also flagged anticipated testimony from Sam Altman, Ilya Sutskever, and Satya Nadella, with Musk potentially taking the stand as early as Tuesday depending on how plaintiffs sequence witnesses. Elon Musk's Legal Gamble: High Stakes Ahead That looming witness parade is part of what makes the Kalshi pricing so jumpy, because each evidentiary ruling can shift how traders view the odds of a clean "win" at trial. The contract has reacted to day-to-day developments, including fresh filings and decisions on what the jury will be allowed to see. The legal playing field also changed after Gonzalez Rogers narrowed the dispute, removing key fraud allegations and leaving claims tied to breach of charitable trust and unjust enrichment. With fewer pathways to liability, traders have had to recalibrate what success for Musk even looks like under the remaining theories. Kalshi's market history shows how quickly sentiment has reversed before: odds climbed to about 60% after sealed materials became public, then slid to roughly the mid-30% range by mid-March. Kalshi attributed the drop in part to the judge eliminating what it described as the strongest contract-based claim, leaving Musk with claims that can be tougher to prove. OpenAI's Mission Shift Sparks Legal Showdown A deal is common enough that it could prevent either side from getting an unambiguous courtroom victory. That possibility can pull on pricing because a settlement may not map neatly to a binary "yes" outcome for bettors. Even without a settlement, the remaining claims focus on charitable duties and alleged benefit-taking rather than the fraud counts that were thrown out, which can change the kind of evidence and narratives jurors hear. OpenAI has pushed back hard, portraying the suit as an attempt to gain an edge in the AI race and previously calling it a "harassment campaign." OpenAI has also warned that an outsized damages award could hit its nonprofit side, adding another layer to what's at stake as the case moves to a jury. Separately, the company has been reported to be exploring an IPO that could value it at up to $1 trillion, a backdrop that keeps attention high as the trial begins. Understanding The $100 Billion Damage Claim Kalshi's summary pegged Musk's requested damages at more than $100 billion, a figure that alone can amplify how traders interpret each procedural win or loss. In the parallel reporting around the case, Musk has been described as seeking as much as $150 billion, with any proceeds pledged to charity. Musk is also seeking non-monetary remedies, including changes to OpenAI's structure such as a return to a fully nonprofit setup and leadership removals, which could matter as much as dollars if the jury finds liability on the charitable-trust theory. The trial calendar has become the near-term catalyst for a market that has been repricing the same question almost daily. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Musk vs Altman Lawsuit Update: Elon Musk Claims Sam Altman Tried to 'Steal the Charity'

Elon Musk accused OpenAI's lawyer of asking "trick" questions during cross-examination, arguing they could mislead the jury, as tensions rose in the ongoing courtroom battle over OpenAI's founding mission and leadership. A high-stakes legal battle between Elon Musk and Sam Altman entered its second day in Oakland, California. The Tesla CEO took the stand to press claims that OpenAI strayed from its founding mission. The dispute dates back to 2015, when OpenAI was founded as a nonprofit organization dedicated to developing artificial intelligence technologies to serve humanity. Musk, who became an early supporter of OpenAI, claims that the organization has now become a commercial business, valued at approximately $852 billion.

Elon Musk testifies he was a 'fool' to invest with 'disingenuous' OpenAI CEO Sam Altman in bombshell trial

Elon Musk said he was a "fool" to trust Sam Altman with the future of OpenAI in his second day of testimony in the bombshell trial over the future of the artificial intelligence giant. "I was a fool who provided them free funding to create a startup," Musk told a packed federal courtroom in Oakland, Calif,. on Wednesday. "I gave them $38 million of essentially free funding to create what would become an $800 billion company." Musk -- who had leveled accusations from the stand a day earlier that Altman had broken a promise to build OpenAI as a charitable organization -- sparred with OpenAI's lawyer William Savitt during his cross examination on Wednesday. When he learned the news that OpenAI had raised $10 billion from Microsoft in 2023, Musk said it finally became clear to him that OpenAI had lost its way. He ripped Altman over what he called "disingenuous" reassurances that OpenAI would remain a nonprofit. "I texted Sam Altman, 'What the hell is going on? This is a bait and switch,'" Musk said. Musk later went on to tell the courtoom that his view of OpenAI has gone through three different phases, with the first being "Enthusiastic support" for OpenAI and it's mission, followed by "Growing skepticism" and finally "They're looting a nonprofit." "We are currently in phase 3," Musk said. Altman and OpenAI president Greg Brockman were seen in the court room throughout Wednesday's testimony, listening intently and occasionally passing notes. Savitt, meanwhile, attempted to pin down Musk about his early involvement with OpenAI -- making a case that he supported plans to establish and grow OpenAI's for-profit entity. In response, Musk hit back at the attorney's yes-or-no line of questioning. "The classic reason you can't ask yes or no questions - Have you stopped beating your wife?" Musk said. US District Judge Yvonne Gonzalez Rogers, who is presiding over the trial, jumped in, saying, "No, we're not going to go there" -- eliciting titters from the courtroom. Savitt also grilled Musk on a text exchange between Musk and then-board member Shivon Zilis just before Musk quit OpenAI's board in 2018. Zilis, who has borne several of Musk's children, asked him whether she should stay "close and friendly" with OpenAI to "keep info flowing." "Close and friendly," Musk replied, according to court documents. "But we are going to actively try to move three or four people from OpenAl to Tesla." Confronted about the back-and-forth with Zilis, Musk deadpanned: "Well. I did want to know what was going on in OpenAI." Slavitt hammered Musk on what he said were vague responses about discussions during OpenAI's early years about creating for profit wing. "You don't remember whether you were open to OpenAI having a for-profit venture in the summer of 2017," Slavitt said. A visibly flustered Musk ultimately said that yes, he did have a recollection of having discussions about it. Savitt also displayed an email where Musk invited people to a party in a "haunted mansion" that Musk had recently bought in or around San Francisco. "OpenAI should start moving toward a for profit immediately," a party attendee said Musk said at the party in a small meeting about OpenAI's future. "Let's all calm down," Rogers said, urging Musk to address Savitt's questions directly and for Savitt to keep the cross-examination moving forward. Earlier in the day, Musk returned to the witness stand knocking his fellow co-founders including Altman for wanting the do-gooder image of running a charity while building a for-profit entity worth many billions of dollars. "They can't have their cake and eat it too," Musk said. "They can't have the positive halo effect of a charity and enrich themselves greatly." Musk has accused OpenAI and its CEO Sam Altman of duping him into thinking he was donating tens of millions of dollars toward launching a nonprofit to develop AI safely and for the benefit of humanity, only to turn it into a for-profit enterprise. Prior to the trial, Musk unleashed a flurry of social media posts that slapped OpenAI's CEO Sam Altman with the moniker "Scam Altman." On Tuesday, Savitt slammed Musk's legal agenda as a hypocritical "tale of two Elons" -- calling it an attempt to throttle OpenAI after Musk launched his rival startup xAI. Musk "will do anything he can to attack OpenAI," Savitt said. "He didn't start coming up with these arguments until he saw that OpenAI could make a lot of money." "What he cares about is Elon Musk being on top," Savitt added. "Mr. Musk had fallen behind. He launched xAI and then he sued."

Elon Musk takes stand in trial vs. Sam Altman that could reshape AI's future

OAKLAND, Calif. -- Elon Musk, the Tesla CEO, world's richest man and OpenAI cofounder, took the stand Tuesday in a high-stakes trial revolving around a bitter feud between himself and former friends Sam Altman and Greg Brockman that could reshape the future development of artificial intelligence. The bickering billionaires' appearances at the Oakland, California, federal courthouse foreshadow the start of a legal drama that is expected to brim with intrigue and potentially embarrassing details about the two tech moguls. Musk filed the lawsuit against Altman and Brockman along with Microsoft over its investments in OpenAI, in 2024. "Fundamentally, I think they're going to try to make this lawsuit...very complicated, but it's actually very simple," Musk said. "Which is that it's not OK to steal a charity." The jury was elected Monday and the trial is scheduled to take three weeks. Opening arguments began with Musk's attorney, Steven Molo, who quoted OpenAI's mission statement when it was created as a nonprofit for the benefit of humanity as a whole and not constrained by the need to generate financial enrichment for anyone. Altman and his top lieutenant Brockman, aided by Microsoft, "stole a charity," Molo said, "a charity whose mission was the safe, open development of artificial intelligence." In the civil lawsuit, Musk accuses Altman and Brockman of double-crossing him by straying from the San Francisco company's founding mission to be a steward of a revolutionary technology. He is seeking damages and to fund the altruistic efforts of OpenAI's charitable arm and Altman's ouster from OpenAI's board. OpenAI has brushed off Musk's allegations as an unfounded case of sour grapes that's aimed at undercutting its rapid growth and bolstering Musk's own xAI, which he launched in 2023 as a competitor. In his opening statement, OpenAI lawyer William Savitt told jurors "we are here because Mr. Musk didn't get his way with OpenAI." Savitt said Musk used his promises to provide funding to bully OpenAI founding members and tried to take control of OpenAI and merge it with Tesla. In fact, he said Musk wanted to form a for-profit company and own more than 50% of it. In the middle of discussions about OpenAI's future, he added, Musk pulled the plug on $5 million quarterly donations he was making. There is no record, Savitt said, of promises made to Musk that OpenAI was going to remain a nonprofit forever, or open-source everything. What Musk ultimately cared about, he said, was not OpenAI's nonprofit status but winning the AI race with Google. Molo said the case is not about Musk, but rather Altman, Brockman and Microsoft. By 2017, about two years after OpenAI's founding, it became clear that OpenAI would need more money, and Molo said the founders eventually settled on the idea of creating a for-profit arm of OpenAI that would support the nonprofit. Terms were capped for investors so they "couldn't make infinite profit." "There is nothing wrong with a nonprofit having a for-profit subsidiary, but (it) has to advance the mission," Molo said. Microsoft initially invested $2 billion in OpenAI. Then, in 2022, news spread that OpenAI had done a deal with Microsoft and "this was a horse of a completely different color," he said. It was a "gamechanger," Molo said, that violated "every commitment" OpenAI made not just to Musk but to the world. It was no longer open source, it became a for-profit company for the benefit of the defendants and Microsoft was going to have control, through licensing, of much of its intellectual property, Molo said. After opening arguments wrap up, testimony will begin with Musk's side presenting a tale chock full of alleged betrayal, deceit and ambition that caused OpenAI to pivot from its founding mission as an altruistic startup to a capitalistic venture now valued at $852 billion. Musk, the world's richest person with an estimated fortune of $778 billion, is among the witnesses who will testify during the trial. Altman, OpenAI's CEO, is also expected to testify, along with Microsoft CEO Satya Nadella, one of the technology leaders who helped fund the late 2022 release of ChatGPT, the chatbot that unleashed the current AI boom that has propelled the stock market to record heights. Altman's court appearance likely made him unavailable to attend an Amazon event across San Francisco Bay on Tuesday at which both companies announced an expanded partnership. "I wish I could be there with you in person today," Altman told attendees of Amazon's event in San Francisco via a prerecorded video message. "My schedule got taken away from me today."

Why does Elon Musk talk so much about saving humanity?

Mr. Musk helped found and donated to OpenAI, which began as a nonprofit in 2015. Mr. Musk left the start-up three years later after a power struggle with his co-founders. The public launch of ChatGPT catapulted OpenAI to commercial success in 2022. On Tuesday, Mr. Musk took the stand to lay out the claims in his 2024 lawsuit. He argued that OpenAI took advantage of his donations and breached its founding agreement by putting commercial interests first. Mr. Musk framed the case as fundamental to "the entire foundation of charitable giving in America," accusing his co-founders of stealing from the public good. Mr. Musk is seeking more than $150 billion in damages from OpenAI and Microsoft, OpenAI's biggest financial partner. He is also asking the court to remove OpenAI's co-founder and chief executive, Sam Altman, from the board, and to stop its recent shift to operate as a for-profit company. OpenAI's lead counsel, William Savitt, argued on Tuesday that Mr. Musk filed the lawsuit because the world's richest person "didn't get his way at OpenAI." The start-up's original nonprofit continues to oversee the for-profit company, and is working to redistribute billions of dollars generated by the commercial operation, he added. The trial's outcome could upend the A.I. landscape. OpenAI is a leading A.I. company. A win for Mr. Musk would also be a win for OpenAI's competitors, from industry giants like Google to young companies like Anthropic and Mr. Musk's own A.I. lab, xAI. A loss for Mr. Musk would mean that OpenAI, which is now valued at about $730 billion, will be free to continue its commercial course just as it appears to be heading toward one of the biggest initial public offerings in history. (The New York Times has sued OpenAI and Microsoft, claiming copyright infringement of news content related to A.I. systems. The two companies have denied the suit's claims.)

Elon Musk to return to witness stand in trial over OpenAI's future - The Economic Times

Elon Musk is back on the witness stand in a lawsuit against OpenAI, accusing the AI firm of abandoning its mission for profit. He testified that creating a for-profit entity "destroyed the foundation of charitable giving." Musk seeks $150 billion and wants OpenAI to revert to a nonprofit, with key leaders removed.Elon Musk is set to return to the witness stand on Wednesday in a high-stakes trial over a lawsuit he brought against OpenAI, alleging the company ditched its mission to be a responsible steward of AI for humanity in pursuit of profits. In testimony on Tuesday before a nine-person jury in Oakland, California federal court, the world's richest person sharply criticized the 2019 decision by the nonprofit OpenAI co-founder and Chief Executive Sam Altman and its President Greg Brockman to create ⁠a for-profit ⁠entity. "If we make it okay to loot a charity, the entire foundation of charitable giving in America will be destroyed," Musk testified. OpenAI has said it created a for-profit entity to allow it to buy computing power and pay top scientists. Its lawyers have argued that Musk is motivated by a compulsion to control OpenAI and bolster his own AI company, SpaceX unit xAI, which lags OpenAI in user adoption. Judge scolds Musk over X posts The trial highlights the depth of the rupture between Musk and Altman. The two Silicon Valley icons once partnered in the quest to ⁠develop the fast-growing AI technology, a pillar of growth in the U.S. economy that is also fueling anxiety about job losses. The pair co-founded OpenAI in 2015 to create a benevolent steward of the technology and ⁠fend off rivals such as Alphabet Inc's Google. Musk, the chief executive of Tesla and SpaceX, left OpenAI in 2018 after investing $38 million. Microsoft, also a defendant, invested $10 billion in OpenAI in 2023. On Wednesday, Musk, 54, will resume being questioned by his own lawyer. He is then expected to be cross-examined by lawyers for OpenAI and the other defendants, who have argued that AI safety was not a priority for Musk when he was with the company and that he derided employees who focused on it "jackasses." Before jurors were seated on Tuesday, U.S. District Judge Yvonne Gonzalez Rogers admonished Musk after OpenAI lawyers complained about posts on X in which Musk assailed Altman as "Scam Altman." Musk, known for brash public commentary, agreed to minimize his social media activity, as did Altman. Musk seeks $150 billion in damages The trial comes as OpenAI prepares for a potential ⁠initial public offering that could value it at $1 trillion, Reuters has reported. The company also faces growing competition from rivals including Anthropic, while a Wall Street Journal report that OpenAI had missed some internal performance targets weighed on the tech-heavy Nasdaq Composite on Tuesday. Musk is seeking $150 billion in damages from OpenAI and Microsoft, with any award going to OpenAI's charitable arm. He also wants OpenAI to revert to a nonprofit, with Altman and Brockman removed as officers and Altman removed from the board. His claims include breach of charitable trust and unjust enrichment. OpenAI is currently structured as a public benefit corporation, in which the nonprofit and other investors including Microsoft hold stakes.

Musk Vs Altman Lawsuit Live Updates: OpenAI Ethics and Non-Profit Agenda in Focus as Court Trial Starts

A nine-member jury has been selected in Oakland as the case officially moves forward. The judge clarified the trial will focus on facts and promises, not technical AI complexity, setting the stage for a closely watched legal battle. Elon Musk and Sam Altman are in loggerheads once again, and this time, a court trial grabs the headlines. Musk has alleged that OpenAI strayed from its original nonprofit mission. He claims he backed OpenAI on that promise, but it later shifted toward a profit-led model with close ties to Microsoft, raising questions about control and intent. The complaint focuses on Musk's allegation that OpenAI violated early pledges by abandoning its original nonprofit objective and moving toward a profit-driven model, raising broader worries about governance over potent AI systems.

Musk kicks off explosive OpenAI trial by slamming Altman, company for abandoning non-profit mission: 'Not OK to steal a charity'

Elon Musk took the stand as the high-profile trial over the future of OpenAI kicked off on Tuesday -- claiming that CEO Sam Altman took control of a group founded as a "charity" and improperly morphed it into a money-minting corporate juggernaut. "They're going to make this case seem complicated but it's actually very simple," Musk told a packed federal courtroom in Oakland, Calif. early Tuesday afternoon, looking relaxed in a black suit and tie. "It's not ok to steal a charity -- that's my view," said Musk. "This case will become case law and become precedent to looting every charity in America. The entire foundation of charitable giving in America will be destroyed." OpenAI's lawyers objected, noting that Musk wasn't an attorney, prompting US District Judge Yvonne Gonzalez Rogers to instruct jurors that Musk's comments were his opinions and had "no legal value whatsoever." Musk was the first witness called to the stand in the blockbuster case where the Tesla CEO has accused Altman and OpenAI's president Greg Brockman of betraying OpenAI's original mission as a nonprofit to safely develop artificial intelligence for the benefit of humanity. Prior to Musk's testimony, William Savitt, an attorney for defendants for OpenAI and its co-founders Sam Altman and Greg Brockman slammed Musk's legal agenda as a hypocritical "tale of two Elons." Savitt painted Musk's lawsuit as little more than an opportunistic attempt to throttle OpenAI and only came about after Musk launched a competing AI company xAI. Musk "will do anything he can to attack OpenAI," Savitt said, adding that Musk didn't like it when OpenAI became an overnight household name in late 2022. "He didn't start coming up with these arguments until he saw that OpenAI could make a lot of money." "What he cares about is Elon Musk being on top - That's why we're here," Savitt said. "Mr. Musk had fallen behind. He launched xAI and then he sued." Musk testified that he started OpenAI because he was concerned about malevolent big tech companies controlling AI, calling out Google specifically. "A company needed to be started as a counterweight to Google," Musk said. "Google didn't seem to care about AI safety at the time." Musk recalled for the courtroom an anecdote where, while staying at Google co-founder Larry Page's house, Page called Musk a "specie-ist," accusing him of caring more about humans than robots. "I do care about humans more than AI," Musk shot back, he told jurors. "What side are you on, Larry?" Musk is seeking $150 billion in damages from OpenAI and Microsoft, pledging to donate any proceeds from a court victory to OpenAI's charitable arm. He is also asking the court to restore OpenAI's nonprofit status and remove Altman and Brockman from leadership roles. Musk's testimony covered early discussions inside OpenAI about the potential to create a small for-profit entity to help with fundraising. A for-profit was fine "as long as the tail did not wag the dog," Musk said. "I could have started it as a for profit and I specifically chose not to." Musk's attorneys pointed to one email indicating that Musk and Brockman agreed in 2015 that OpenAI should be created as a nonprofit. Sam Altman responded saying that a nonprofit was the way to go. Less than a month later, Musk's attorneys said OpenAI was founded as a nonprofit.

OpenAI trial pitting Elon Musk against Sam Altman kicks off

OAKLAND, California, April 28 (Reuters) - A trial that could help shape the future of artificial intelligence begins on Tuesday, with billionaires Elon Musk and Sam Altman at odds over the evolution of ChatGPT maker OpenAI from a nonprofit to a profit-seeking juggernaut worth hundreds of billions of dollars. Opening statements in Musk's civil lawsuit against OpenAI and Altman will take place in the Oakland, California, federal court, following the selection on Monday of nine jurors. Musk claims that Altman and Greg Brockman, respectively OpenAI's chief executive and president, betrayed him and the public by abandoning the company's mission to be a benevolent steward of AI for the benefit of humanity, and turning it into a "wealth machine" for themselves and investors. The world's richest person is seeking $150 billion in damages from OpenAI and Microsoft, one of its largest investors, with proceeds going to OpenAI's charitable arm. He also wants OpenAI to revert to a nonprofit, with Altman and Brockman removed as officers and Altman removed from its board. Musk, the Tesla TSLA.O and SpaceX founder, has said he provided about $38 million of seed money to OpenAI for its original mission, only to see OpenAI create a for-profit entity in March 2019, a little over a year after he left its board. OpenAI countered that Musk knew about and supported the transformation, and sued only after failing to become CEO, and starting his own AI company to stunt its growth. Musk is no longer seeking damages for himself as he pursues breach of charitable trust and unjust enrichment claims. U.S. District Judge Yvonne Gonzalez Rogers has said she wants jurors to begin deliberations on the defendants' liability by May 12. The jurors include nurses, city workers and retirees. If they find the defendants liable, both sides will argue possible remedies to the judge. Musk, Altman and Microsoft chief Satya Nadella are among the witnesses expected to testify, with Musk taking the stand as soon as this week. Musk and Altman co-founded OpenAI in 2015 with a goal of developing AI to benefit humanity and fend off rivals such as Google GOOGL.O. The trial could offer a window into some of the egos and personalities that shaped OpenAI as it evolved from a nonprofit research lab in Brockman's apartment to a company worth more than $850 billion. It risks complicating OpenAI's plans for a potential initial public offering by casting doubt on its leadership, and could also intensify Americans' fears about AI technology more broadly. OpenAI has argued that Musk was motivated by jealousy in trying to undermine its growth and prop up his own xAI, which he founded in 2023 shortly after OpenAI launched ChatGPT. It has said Musk was involved in discussions to create OpenAI's new structure and demanded to be CEO. Microsoft has denied having colluded with OpenAI and says it teamed up with OpenAI only after Musk left. OpenAI faces growing competition from rivals including Anthropic, and is spending billions on computational resources. A potential IPO could value the company at $1 trillion, Reuters has reported. Musk's xAI trails far behind OpenAI in usage. He has folded that business into his rocket company SpaceX, whose own potential IPO this year could be the largest ever. Last fall, OpenAI overhauled its structure again to become a public benefit corporation, in which the nonprofit and other investors including Microsoft hold stakes. The nonprofit holds a 26% stake, plus warrants if OpenAI hits certain valuation targets. A public benefit corporation could make OpenAI more investor-friendly while retaining its charitable origins.

Elon Musk's lawsuit against OpenAI heads to trial over nonprofit claims

Elon Musk's lawsuit accusing OpenAI of abandoning its non-profit mission heads to trial on Monday with jury selection in California. The case pits the world's richest person against a startup he once backed and now rivals through xAI and its chatbot Grok. The feud also involves Sam Altman. Elon Musk's lawsuit accusing high-profile artificial intelligence company OpenAI of betraying its non-profit mission heads for trial on Monday with the selection of jurors. The legal clash in a courtroom across the bay from San Francisco pits the world's richest person against a startup Musk once backed and now competes with in the booming AI sector. OpenAI's ChatGPT is a formidable rival to the chatbot Grok, made by Musk's xAI lab. While Musk's lawsuit is part of a feud between him and OpenAI Chief Executive Sam Altman, it spotlights a debate as to whether AI should ultimately serve to benefit a privileged few or society as a whole. Court filings lay out how Altman convinced Musk to back OpenAI in 2015, acting as a co-founder for a non-profit lab whose technology "would belong to the world." Read moreUS jury finds tech tycoon Elon Musk misled Twitter shareholders Musk pumped millions of dollars into the lab, which he subsequently left. However, OpenAI established a commercial subsidiary as it needed hundreds of billions of dollars for data centers to power its technology. Microsoft has poured billions of dollars into OpenAI and its CEO Satya Nadella is among those slated to testify at the trial. Musk argues in his lawsuit that he was deceived about OpenAI's mission being altruistic. San Francisco-based OpenAI has countered in court filings that its break-up with Musk was due to his quest for absolute control rather than its nonprofit status. "This case has always been about Elon generating more power and more money for what he wants," OpenAI said in a recent X post. "His lawsuit remains nothing more than a harassment campaign that's driven by ego, jealousy and a desire to slow down a competitor." The startup noted that days after Musk entered the AI race in 2023 he called for a six-month moratorium on development of advanced AI. Read moreMusk snubs Paris prosecutors' summons over X and Grok The judge presiding over the trial will decide by mid-May -- guided by an advisory jury's findings -- whether OpenAI broke a promise to Musk in a drive to lead in AI or just smartly rode the technology to glory. Along with calling for OpenAI to be forced to revert to a pure nonprofit, Musk's suit urges the ouster of Altman and co-founder Greg Brockman, who is startup president. Musk, who had sought as much as $134 billion in damages, has since renounced any personal benefit, pledging to redirect any award to the OpenAI nonprofit. Judge Yvonne Gonzalez Rogers has reserved the right to determine any remedies herself, without the jury's input. OpenAI now has a hybrid governance structure giving its nonprofit foundation control over a for-profit arm. Musk, who gutted the trust and safety team at Twitter after buying the social media platform that he renamed X, faces the challenge of convincing a jury and a judge that the company behind ChatGPT was built on a lie.

Musk's OpenAI Feud Intensifies As Court Dismisses Fraud Charges But Clears Path For High-Stakes Trial Ove

On Friday, a U.S. judge narrowed Elon Musk's legal battle against OpenAI, dismissing key fraud claims while allowing a closely watched trial over the company's nonprofit origins to move forward. Judge Dismisses Fraud Claims, Keeps Core Dispute Alive U.S. District Judge Yvonne Gonzalez Rogers ruled that Musk's fraud and constructive fraud allegations lack sufficient grounds, effectively trimming the scope of the lawsuit, Reuters reported. However, the court allowed claims tied to breach of charitable trust and unjust enrichment to proceed, setting the stage for a high-stakes jury trial in Oakland, California. Jury selection is scheduled to begin Monday, with opening arguments expected Tuesday. Musk Targets OpenAI's Shift To For-Profit Model At the heart of the dispute is Musk's claim that OpenAI abandoned its founding mission as a nonprofit dedicated to benefiting humanity when it created a for-profit arm in 2019. The lawsuit also names CEO Sam Altman and tech giant Microsoft Corp (NASDAQ:MSFT), a major investor in OpenAI. Musk argues that the transition enabled the company to prioritize profits over the public good. He is seeking damages reportedly as high as $150 billion, with any proceeds pledged to charity. OpenAI Fires Back, Calls Lawsuit Self-Serving OpenAI has strongly rejected the allegations, characterizing the lawsuit as a competitive move driven by Musk's personal interests in the artificial intelligence race. The company earlier said the claims amount to a "harassment campaign" fueled by rivalry rather than legitimate legal concerns. OpenAI has also warned that such large damages could severely impact its nonprofit arm. What's At Stake In The Trial The upcoming trial will center on whether OpenAI violated its original charitable commitments by restructuring into a hybrid model. Musk is also pushing for structural changes, including a return to a fully nonprofit organization and the removal of key leadership. The case unfolds as OpenAI reportedly explores a potential IPO that could value the company at up to $1 trillion, raising the stakes for both sides. Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Elon Musk appears in court at start of case that could reshape AI's future | BreakingNews

Tesla chief Elon Musk has appeared in court in a high-stakes trial revolving around a bitter feud between himself and former friends Sam Altman and Greg Brockman that could reshape the future development of artificial intelligence (AI). The bickering billionaires' appearances at a federal court in Oakland, California, foreshadow the start of a legal drama expected to brim with intrigue and potentially embarrassing details about the tech moguls. Mr Musk filed the lawsuit against Mr Altman and Mr Brockman along with Microsoft over its investments in OpenAI in 2024. The Tesla chief and world's richest man was one of a team of original co-founders of OpenAI, along with the current chief executive Mr Altman and president Mr Brockman. "Fundamentally, I think they're going to try to make this lawsuit ... very complicated, but it's actually very simple," Mr Musk said. "Which is that it's not OK to steal a charity." Opening arguments began with Mr Musk's lawyer, Steven Molo, who quoted OpenAI's mission statement when it was created as a non-profit for the benefit of humanity as a whole, and not constrained by the need to generate financial enrichment for anyone. Mr Altman and his top lieutenant Mr Brockman, aided by Microsoft, "stole a charity", Mr Molo said, "a charity whose mission was the safe, open development of artificial intelligence". In the civil lawsuit, Mr Musk accuses Mr Altman and Mr Brockman of double-crossing him by straying from the San Francisco company's founding mission to be a steward of a revolutionary technology. He is seeking damages and to fund the altruistic efforts of OpenAI's charitable arm and Mr Altman's removal from OpenAI's board. OpenAI has brushed off Mr Musk's allegations as an unfounded case of sour grapes aimed at undercutting its rapid growth and bolstering Mr Musk's own xAI, which he launched in 2023 as a competitor. In his opening statement, OpenAI lawyer William Savitt told jurors "we are here because Mr Musk didn't get his way with OpenAI". Mr Savitt said Mr Musk used his promises to provide funding to bully OpenAI founding members and tried to take control of OpenAI and merge it with Tesla. In fact, he said Mr Musk wanted to form a for-profit company and own more than 50% of it. In the middle of discussions about OpenAI's future, he added, Mr Musk pulled the plug on five million dollars (£3.7 million) in quarterly donations he was making. There is no record, Mr Savitt said, of promises made to Mr Musk that OpenAI was going to remain a non-profit forever, or open-source everything. What Mr Musk ultimately cared about, he said, was not OpenAI's non-profit status but winning the AI race with Google. Mr Molo said the case is not about Mr Musk, but rather Mr Altman, Mr Brockman and Microsoft. By 2017, about two years after OpenAI's founding, it became clear that OpenAI would need more money, and Mr Molo said the founders eventually settled on the idea of creating a for-profit arm of OpenAI that would support the non-profit. Terms were capped for investors so they "couldn't make infinite profit". "There is nothing wrong with a non-profit having a for-profit subsidiary, but (it) has to advance the mission," Mr Molo said. Microsoft initially invested two billion dollars (£1.4 billion) in OpenAI. Then, in 2022, news spread that OpenAI had done a deal with Microsoft and "this was a horse of a completely different colour", he said. It was a "gamechanger", Mr Molo said, that violated "every commitment" OpenAI made not just to Mr Musk but to the world. It was no longer open source, it became a for-profit company for the benefit of the defendants and Microsoft was going to have control, through licensing, of much of its intellectual property, Mr Molo said. After opening arguments wrap up, Mr Musk's side is expected to present a tale chock full of alleged betrayal, deceit and ambition that caused OpenAI to pivot from its founding mission as an altruistic start-up to a capitalistic venture now valued at 852 billion dollars (£629 billion). Mr Musk, the world's richest person with an estimated fortune of 778 billion dollars (£574 billion), is among the witnesses. Mr Altman, OpenAI's chief executive, is also expected to give evidence, along with Microsoft chief Satya Nadella, one of the technology leaders who helped fund the late 2022 release of ChatGPT, the chatbot that unleashed the current AI boom that has propelled the stock market to record heights. Mr Altman's court appearance likely made him unavailable to attend an Amazon event across San Francisco Bay on Tuesday at which both companies announced an expanded partnership. "I wish I could be there with you in person today," Mr Altman told attendees of Amazon's event in San Francisco via a pre-recorded video message. "My schedule got taken away from me today."

Here's what Musk's lawyers argued in their opening statement.

In opening statements, his legal team framed the case as a moral issue centered on the public good, while a lawyer for OpenAI argued the tech mogul was simply upset that he "didn't get his way." Mr. Musk, Sam Altman and other A.I. researchers founded OpenAI as a nonprofit in 2015, vowing to freely share its technology with the rest of the world. But Mr. Musk left the start-up in 2018 after a power struggle with Mr. Altman -- and before the public launch of ChatGPT in 2022 catapulted OpenAI to commercial success. Mr. Musk sued OpenAI in 2024, claiming that the nonprofit he funded with his own large donations took advantage of his financial resources. He also argued that OpenAI breached its founding agreement by putting commercial interests over the public's. Steven Molo, Mr. Musk's lead counsel, told the jury in his opening statement that OpenAI had been created "for the benefit of all mankind" and accused those who remained after Mr. Musk's departure of effectively stealing from the public. "To steal a charity is absolutely wrong," he said. OpenAI's lead counsel, William Savitt, said in his opening statement that Mr. Musk's case was not an altruistic endeavor. "We're here because Mr. Musk didn't get his way at OpenAI," he said. He noted that the original OpenAI nonprofit continues to oversee the for-profit company, and was working to redistribute billions of dollars generated by the commercial operation. Mr. Musk is asking for more than $150 billion in damages from OpenAI and Microsoft, OpenAI's primary partner, and for any damages be shared with the OpenAI nonprofit. He is also asking the court to remove Mr. Altman from the start-up's board and stop a shift the company recently made to operate as a for-profit company. If Mr. Musk loses, Mr. Altman will likely solidify control of a company that has become synonymous with corporate dysfunction. And OpenAI, which is now valued at about $730 billion, will be free to pursue a data center expansion plan that could cost hundreds of billions of dollars. (The New York Times has sued OpenAI and Microsoft, claiming copyright infringement of news content related to A.I. systems. The two companies have denied the suit's claims.)

Elon Musk says OpenAI was his idea, before executives looted it - The Economic Times

In a high-stakes courtroom drama, Elon Musk has launched a lawsuit against OpenAI and its executives, alleging that they've strayed from the altruistic vision that inspired the company's creation. Musk maintains that he established OpenAI as a nonprofit venture aimed at uplifting humanity. Elon Musk took the stand on Tuesday at a high-stakes trial over the future of OpenAI, casting his lawsuit against the ChatGPT maker as a defense of charitable giving. The world's richest person is suing OpenAI, its cofounder and chief executive Sam Altman and its President Greg Brockman, saying they betrayed him and the public by abandoning OpenAI's mission to be a benevolent steward of AI for humanity, and transforming the nonprofit into a profit-seeking juggernaut. "If we make it OK to loot a charity, the entire foundation of charitable giving in America will be destroyed," Musk testified on the first day of the trial. "That's my concern." Musk, who founded automaker Tesla and rocket company SpaceX, characterized OpenAI as his brainchild as well. "I came up with the idea, the name, recruited the key people, taught them everything I know, provided all of the initial funding," Musk said. "It was specifically meant to be for a charity that does not ⁠benefit any ⁠individual person. I could've started it as a for profit and I specifically chose not to." Before Musk began testifying, William Savitt, a lawyer for OpenAI and Altman, told jurors during his opening statement it was Musk who saw dollar signs as he helped finance OpenAI's early growth and pushed it to become a for-profit business, one he might eventually lead as CEO. Savitt said Musk wanted "the keys to the kingdom," and sued only after he failed. In 2023, he started his own AI business, xAI, now part of SpaceX. "What he cares about is Elon Musk being on top," Savitt said in his opening statement. "We are here because Mr. Musk didn't get his way." OpenAI's lawyer also framed OpenAI's March 2019 creation of a for-profit entity as critical to letting it buy computing power and pay top scientists to stay competitive with Google's DeepMind AI lab. Musk's lawyer, Steven Molo, told jurors in his opening statement it was the OpenAI defendants who were greedy for money, as OpenAI began drawing investors including Microsoft, which invested $10 billion in January 2023. "It wasn't a vehicle for ⁠people to get rich," Molo said. Musk is expected to resume his testimony on Wednesday. Judge admonishes Musk over social media use Musk is seeking $150 billion in damages from OpenAI and Microsoft, one of its largest investors, with proceeds going to OpenAI's charitable arm. He also wants OpenAI to revert to a nonprofit, with Altman and Brockman removed as officers and Altman removed from its board. Musk's ⁠claims include breach of charitable trust and unjust enrichment. While Musk described OpenAI as a charity, the organization called itself a nonprofit artificial intelligence research company in a 2015 post, "Introducing OpenAI." Before jurors were seated, U.S. District Judge Yvonne Gonzalez Rogers admonished Musk after OpenAI lawyers complained about his posts on X on Monday, in which he assailed Altman as "Scam Altman" and accused him of stealing a charity. Rogers said she was loath to issue a gag order, but urged Musk to "try to control your propensity to use social media to make things work outside the courtroom ... Perhaps you've never done that before." Musk agreed to minimize his social media activity, and Altman similarly agreed. Altman and Microsoft chief Satya Nadella are also expected to testify. The trial offers a window into some of the egos and personalities that shaped OpenAI as it evolved from a nonprofit research lab in Brockman's apartment to a company worth more than $850 billion. It also risks complicating OpenAI's plans for a potential initial public offering by casting doubt on its leadership, and could intensify Americans' fears about AI technology more broadly. Lawyers dispute importance of AI safety to Musk Musk and Altman co-founded OpenAI in 2015 with a goal of developing AI to benefit humanity and fend off rivals such as Google. Musk testified that "I've had extreme concerns about AI for a very long time," and focused more intently on it after meetings with former US President Barack Obama and Google didn't address AI's risks. "I was very close friends with Larry Page at Google," Musk testified, referring to Google's cofounder. "We would talk for many hours about ⁠AI safety. At a certain point it was clear to me Larry Page was not sufficiently caring about AI ... We had to have a counterpoint against Google." Savitt, in his opening statement, said AI safety wasn't a priority for Musk, and that Musk denigrated OpenAI employees who focused on it. "Jackasses is what he called them," Savitt said. Musk has said he provided about $38 million to OpenAI for its original mission, and testified he flexed his connections to provide computing capacity, personally approaching Nadella as well as Nvidia CEO Jensen Huang. OpenAI created its for-profit entity 13 months after Musk left its board. Russell Cohen, a lawyer for Microsoft, said in his opening statement that the company didn't do anything wrong, and has been "a responsible partner every step of the way." OpenAI also faces growing competition from rivals including Anthropic, and is spending billions on computational resources. A potential IPO could value the company at $1 trillion, Reuters has reported. Musk's xAI trails far behind OpenAI in usage. He has folded that business into SpaceX, whose own potential IPO this year could be the largest ever. Late last year, OpenAI overhauled its structure again to become a public benefit corporation, in which the nonprofit and other investors including Microsoft hold stakes. The nonprofit holds a 26% stake, plus warrants if OpenAI hits certain valuation targets.

Elon Musk to return to witness stand for cross-examination by OpenAI's lawyer

OAKLAND, California, April 30 (Reuters) - Elon Musk is due to return to the witness stand on Thursday for a second day of cross-examination by Sam Altman's lawyer, in a high-stakes trial over a lawsuit Musk brought accusing OpenAI of abandoning its mission to develop artificial intelligence for the benefit of humanity. The world's richest man alleges that OpenAI, its co-founder and CEO Sam Altman, and its President Greg Brockman wooed his $38 million in donations by promising to build a nonprofit that would prioritize safe development of AI, before pivoting to create a for-profit entity to enrich themselves. OpenAI has countered that Musk, the CEO of Tesla and SpaceX, is driven by a compulsion to control OpenAI and is bitter about the company's success after he left the board in 2018. They have also said he did not prioritize safety issues when he was with the company, and that he is trying to bolster his own AI company, SpaceX unit xAI, which lags OpenAI in user adoption. In tense exchanges on Tuesday, William Savitt, a lawyer for OpenAI, Altman and Brockman, pressed Musk about text messages and emails showing that he at times expressed openness to creating a for-profit entity and that Altman kept him apprised about Microsoft's investments in OpenAI. Earlier on Wednesday, jurors in federal court in Oakland, California, saw an email Musk sent to Altman and Brockman in 2017, referring to himself as a "fool" for providing them funding for what he believed was a nonprofit venture. "I felt like they had not been honest with me," Musk said under questioning by his lawyer, Steven Molo. "What they really wanted to do was create a for-profit where they had as much shareholder ownership as possible." OpenAI has said it created a for-profit entity to allow it to accept private investments to help buy computing power and pay top scientists. Savitt is expected to cross-examine Musk for about an hour on Thursday, and a lawyer for Microsoft will also question him. The trial started on Monday and is expected to last several weeks. The next witnesses after Musk are expected to be his top aide, Jared Birchall, Brockman, and AI safety expert Stuart Russell. (Reporting by Deepa Seetharaman and Kenrick Cai in Oakland, CaliforniaWriting by Luc CohenEditing by Rod Nickel)

Theft accusations, cringey texts and billionaire witnesses -- everything you need to know about the explosive Musk Vs OpenAI trial

It's the messiest lawsuit Artificial Intelligence has faced yet -- with the fate of billions, and potentially humanity itself, in the jury's hands. The world's richest man, Elon Musk, is squaring off against former ally (and fellow billionaire) Sam Altman in a blockbuster federal trial that kicks off today over the soul -- and future -- of OpenAI, which they co-founded. Musk's lawsuit contends the company has betrayed its founding principals in a fight which has devolved into bitter accusations of betrayal, greed and deceit among some of Silicon Valley's most powerful tech titans. Here's how the drama has unfolded so far -- and what we can expect to see as the case plays out at federal court in Oakland, California. The clash of tech titans goes back to OpenAI's earliest days. Musk and Altman, currently CEO of OpenAI, founded the organization with others in 2015 as a nonprofit focused on developing artificial intelligence safely and transparently to benefit humanity. But cracks began to show as the company grew and an acrimonious power struggle emerged between the pair over its direction, governance and, particularly -- how to fund the emerging technology. Musk, who helped fund the venture, stepped down from OpenAI in 2018 -- way before the public launch of its most successful product, ChatGPT, in 2022 which in a few short months made the brand a household name and one of the most important tech companies in the world. "Guys, I've had enough," Musk wrote in an email a few months prior to his departure. "Either go do something on your own or continue with OpenAI as a nonprofit. "I will no longer fund OpenAI until you have made a firm commitment to stay or I'm just being a fool who is essentially providing free funding for you to create a startup." Musk officially stepped down due to a conflict of interest, as he was developing AI for use in his Tesla vehicles. He also launched a commercial AI product, xAI in 2023. After Musk's departure, OpenAI transitioned to a "capped-profit" model and forged a multibillion-dollar partnership with Microsoft -- moves Musk claims violated the organization's original mission. Musk launched his suit in 2024, claiming the nonprofit he funded with at least $44 million took advantage of his financial resources. In his lawsuit, Musk alleges OpenAI has since become a profit-driven enterprise, prioritizing commercial success over the public good, and that the company's leaders, including Altman and company president Greg Brockman wrongfully profited from his charitable contributions. "Scam Altman and Greg Stockman [sic] stole a charity. Full stop," Musk wrote Monday on X, before the judge presiding over the case ordered him to limit his public posts about the matter during proceedings. OpenAI and Altman reject that characterization, arguing Musk is challenging the company as a competitor with xAI and its chatbot Grok. They claim Musk's suit is "motivated by jealousy, regret for walking away from OpenAI and a desire to derail a competing AI company", according to a statement from OpenAI. Microsoft, which Musk named as a co-defendant in the case, is accused of aiding and abetting OpenAI's breach of charitable trust. In a motion to dismiss, Microsoft called Musk's arguments "devoid of factual specificity and substantiation, repeatedly relying on unsupported 'information and belief.'" Musk is seeking about $150 billion in damages from OpenAI and Microsoft. He's also asking the court to boot Altman from the company's board and revert OpenAI to a nonprofit structure. Hundreds of court filings have revealed the private communications of Musk, Altman, other OpenAI founders and public figures. They include cringey texts, call logs and personal diary entries that shed light on rivalries and internal tensions among the tech heavyweights, while also offering a rare, unfiltered look at how their personal relationships, competition and massive financial stakes were managed behind the scenes. In one 2023 email submitted as an exhibit, Altman describes Musk as his "hero" but adds that he's hurt by his attacks on OpenAI. "I hear you and it is certainly not my intention to be hurtful, for which I apologize, but the fate of civilization is at stake," Musk said in response. The documents indicate Musk was in communication with Meta boss Mark Zuckerberg about issues tied to OpenAI. Referring to Musk's government-slashing efforts through the Department of Government Efficiency (DOGE), Zuckerberg texted, "Looks like DOGE is making progress. I've got our teams on alert to take down content doxxing or threatening the people on your team. Let me know if there's anything else I can do to help." Musk reacted to the Feb. 3, 2025 message with a heart emoji, then asked, "Are you open to the idea of bidding on OpenAI with me and some others?" Musk's private comments about Amazon founder Jeff Bezos being a "tool" also surfaced in the filings, highlighting personal friction underlying some of the industry's biggest players. Lawyers even dug into Musk's whereabouts and activities -- including his attendance at the notorious Burning Man festival -- as they attempted to establish timelines and priorities during key moments. Mentions of Musk's alleged use of the powerful drug Ketamine appeared in pretrial wrangling but were ultimately ruled inadmissible, according to the Post. Writings attributed to Brockman reportedly revealed his concern about wealth, control and OpenAI's evolving structure. Musk has cast the lawsuit as a fight to restore OpenAI's founding principles. He has argued the company strayed from its original mission and become too closely aligned with corporate interests -- and that's bad for the future of humanity. He has also signaled the case is about principle rather than profit, saying he would direct any damages won in the case to charity causes aligned with OpenAI's original goals and assured he would not profit personally from the suit. Altman and OpenAI, however, have pushed back forcefully. They argue Musk was aware of -- and at times supportive of -- the company's evolution, and now seeks to undermine it as a rival, interfere with its operations and gain leverage in a rapidly growing and evolving industry. The outcome of the trial could ultimately determine not only who controls OpenAI, but how the most powerful technology of a generation should be governed. The witness list for the Musk-Altman showdown reads less like a typical court docket and more like a Silicon Valley power index, with several key figures set to testify. At the center of it all, Musk himself is expected to take the stand, setting up a high-stakes moment when the billionaire will publicly defend his claims under oath. Across the aisle, Altman is poised to play a leading role in laying out the defense for OpenAI and its controversial evolution. The courtroom drama is also slated to feature testimony from Brockman, Microsoft chief Satya Nadella, whose company's multibillion-dollar investment in OpenAI has become a point of scrutiny. Another major insider, ex-OpenAI employee Mira Murati, is also on the list of potential witnesses. But it's not just executives who could take the stand. Shivon Zilis -- a former OpenAI board member and the mother of at least four of Musk's children, who now works at Musk's brain implant company Neuralink -- is expected to testify, which will likely add a personal dimension to the high profile case. Tasha McCauley, another former OpenAI board member who previously attempted to oust Altman, is also listed to appear. The case is expected to pull back the curtain on OpenAI's internal decision-making, its financial arrangements and its motivations, and the trial is expected to run for approximately four weeks.

Elon Musk and OpenAI CEO Sam Altman head to court in high-stakes showdown over AI

OAKLAND, Calif. -- Technology tycoons Elon Musk and Sam Altman are poised to face off in a high-stakes trial revolving around the alleged betrayal, deceit and unbridled ambition that blurred the bickering billionaires' once-shared vision for the development of artificial intelligence. The trial, which is scheduled to begin Monday with jury selection, centers on the 2015 birth of ChatGPT maker OpenAI as a nonprofit startup primarily funded by Musk before evolving into a capitalistic venture now valued at US$852 billion. The trial's outcome could sway the balance of power in AI -- breakthrough technology that is increasingly being feared as a potential job killer and an existential threat to humanity's survival. Those perceived risks are among the reasons that Musk, the world's richest person, cites for filing an August 2024 lawsuit that will now be decided by a jury and U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California. The civil lawsuit accuses Altman, OpenAI's CEO, and his top lieutenant, Greg Brockman, of double-crossing Musk by straying from the San Francisco company's founding mission to be an altruistic steward of a revolutionary technology. The lawsuit alleges they shifted into a moneymaking mode behind his back. OpenAI has brushed off Musk's allegations as an unfounded case of sour grapes that's aimed at undercutting its rapid growth and bolstering Musk's own xAI, which he launched in 2023 as a competitor. Musk, who invested about $38 million in OpenAI from December 2015 through May 2017, initially was seeking more than $100 billion in damages. But any damages now are likely to be much smaller after a series of pre-trial rulings that went against Musk. Musk has since abandoned a bid for damages for himself and instead is seeking an unspecified amount of money to be paid to fund the altruistic efforts of OpenAI's charitable arm. The money would be paid primarily by OpenAI's for-profit operations, and Microsoft, which became the company's biggest investor after Musk cut off his funding. Musk's lawsuit also seeks Altman's ouster from OpenAI's board. Musk's decision to stop funding the company contributed to a bitter falling out between the former allies. Musk says he was responding to deceptive conduct that OpenAI's board picked up on when it fired Altman as CEO in 2023 before he got his job back days later. But the trial also carries risks for Musk, who last month was held liable by another jury for defrauding investors during his $44 billion takeover of Twitter in 2022. Any damaging details about Musk and his business tactics could be particularly hurtful now because his rocket ship maker, SpaceX, plans to go public this summer in an initial public offering that could make him the world's first trillionaire. However it turns out, the trial is expected to provide riveting theater, with contrasting testimony from two of technology's most influential and polarizing figures in the 54-year-old Musk and the 41-year-old Altman. "Part of this is about whether a jury believes the people who will testify and whether they are credible," Gonzalez Rogers said during a court hearing earlier this year while explaining why she believe the case merited a trial. The judge will make the final decision on the case, with the jury serving in an advisory role. Musk, whose estimated fortune stands at about $780 billion, has long been hailed as a visionary for his roles creating digital payment pioneer PayPal, electric automaker Tesla and rocket ship maker SpaceX. But he has also provoked backlashes with his social media commentary, unfulfilled promises about Tesla's self-driving technology and his cost-cutting role last year in President Donald Trump's administration. Some of Musk's erratic behavior has been tied to allegations of taking hallucinogenic drugs, but Gonzalez Rogers ruled that he can't be asked during the trial about his suspected use of ketamine. But the judge is allowing Musk to be questioned about his attendance at the 2017 Burning Man festival in Nevada, a free-wheeling celebration known for widespread drug use. The judge is also allowing Musk to be questioned about his relationship with former OpenAI board member Shivon Zilis, the mother of several of his children. Altman, currently sitting on a roughly $3 billion fortune, didn't emerge in the public consciousness until the late 2022 release of ChatGPT. The tech boom triggered by that conversational chatbot has led some to liken Altman to a 21st-century version of the nuclear bomb inventor, J. Robert Oppenheimer. Although Altman was initially hailed as trailblazer he is now facing blowback amid worries about AI's potential dangers. Earlier this month, the New Yorker magazine published a profile that painted him as an unscrupulous executive. Days later, a 20-year-old man worried about AI's effect on humanity was arrested on attempted murder charges after throwing a Molotov cocktail at Altman's San Francisco home. The dueling testimonies of Altman and Musk are expected to open a window into some of the thinking that helped trigger the AI race, as well as the unraveling of their friendship. The kinship was forged in 2015 when they agreed to build AI in a more responsible and safer way than the profit-driven companies controlled by Google co-founders Larry Page and Sergey Brin and Facebook founder Mark Zuckerberg, according to evidence submitted ahead of the trial. Details of the bitter break between the two men were captured in a February 2023 email exchange that surfaced as part of the evidence leading up to the trial. After letting Musk know "you're my hero," Altman tells him: "I am tremendously thankful for everything you've done to help -- I don't think OpenAI would have happened without you -- and it really (expletive) hurts when you publicly attack OpenAI." Musk's response: "I hear you and it is certainly not my intention to be hurtful, for which I apologize, but the fate of civilization is at stake."

Musk and Altman arrive for opening of trial that could reshape AI's future | BreakingNews

OpenAI co-founders Elon Musk and Sam Altman have arrived for Tuesday's opening statements in a high-stakes trial revolving around a bitter feud between the former friends that could reshape the future development of artificial intelligence. The bickering billionaires' early-morning appearances at the federal court in Oakland, California, foreshadow the start of a legal drama that is expected to brim with intrigue and potentially embarrassing details about the two tech moguls. The jury was elected on Monday and the trial is scheduled to take three weeks. After the lawyers provide an overview of their respective cases, evidence will begin presenting Musk's side of a tale chock full of alleged betrayal, deceit and ambition that caused OpenAI to pivot from its founding mission as an altruistic startup to a capitalistic venture now valued at 852 billion dollars (£630 billion). Musk, the world's richest person with an estimated fortune of 778 billion dollars (£576 billion), is among the witnesses who will give evidence during the trial. His presence on Tuesday may mean that he will be among the first people to enter the witness box. Altman, OpenAI's chief executive, is also expected to give evidence at the trial, along with Microsoft chief executive Satya Nadella, one of the technology leaders who helped fund the late 2022 release of ChatGPT, the chatbot that unleashed the current AI boom that has propelled the stock market to record heights.

Billionaire Elon Musk enters courtroom showdown with OpenAI

San Francisco (United States) (AFP) - Jury selection is to begin Monday in a high-profile legal battle between billionaire Elon Musk and artificial intelligence startup OpenAI, which he accuses of betraying its non-profit mission. The clash in a courtroom across the bay from San Francisco pits the world's richest man against a startup that Musk once backed and now competes against in the booming AI sector. OpenAI's ChatGPT is a formidable rival to the Grok chatbot made by Musk's xAI lab. While the lawsuit filed by Musk is part of a feud between him and OpenAI chief executive Sam Altman, it spotlights a debate whether AI should ultimately benefit the privileged few or society as a whole. Court filings lay out how Altman tried to convince Musk to back OpenAI in 2015, acting as a co-founder for a non-profit lab whose technology "would belong to the world." Musk pumped some $38 million into the lab before he left. OpenAI is now valued at $852 billion, with Microsoft among its backers, and is preparing to go public on the stock market. The judge presiding over the trial is aiming for a jury to decide by late May whether OpenAI broke a promise to Musk in its drive to be a leader in AI or just smartly rode the technology to glory. Musk duped? Musk argues in his lawsuit that he was deceived about OpenAI's mission being altruistic. The tycoon cites an email from Altman in 2017 claiming that he remained "enthusiastic about the non-profit structure" of their AI venture after Musk threatened to cut off funding for the lab. Just a few months later, however, OpenAI established a commercial subsidiary in the face of needing to invest hundreds of billions of dollars in data centers to power its technology. Over the course of the following two years, Microsoft pumped billions of dollars into OpenAI and the tech stalwart's stake in the startup is now valued about $135 billion. Microsoft chief executive Satya Nadella is among those slated to testify at the trial. Aimed at Altman Along with calling for OpenAI to be forced to revert to a pure nonprofit, Musk's suit urges the ousting of Altman and OpenAI co-founder and president Greg Brockman. Musk is also seeking as much as $134 billion in damages and to have the court make OpenAI sever ties with Microsoft. During pre-trial hearings, US Judge Yvonne Gonzalez Rogers mused that Musk team seemed to be "pulling numbers out of the air" when it came to calculating damages. If the jury sides with Musk, it will be left to Rogers to determine any remedies or payment. In what OpenAI has dismissed as a public relations stunt, Musk has vowed that any damages awarded in the suit will go to the startup's nonprofit foundation. Quest for control? OpenAI internal communications brought to light by the lawsuit reveal tensions that culminated with the temporary ouster of Altman as AI chief executive in late 2023. Musk's legal team highlighted a 2017 entry in Brockman's personal journal reasoning that it would be lying if Altman publicly asserted OpenAI would stay a nonprofit but became a corporation a short time later. OpenAI now has a hybrid governance structure giving its nonprofit foundation control over a for-profit arm. In court filings, OpenAI countered that its break-up with Musk was due to his quest for absolute control rather than its nonprofit status. "This case has always been about Elon generating more power and more money for what he wants," OpenAI said in a post on X, a platform Musk owns. "His lawsuit remains nothing more than a harassment campaign that's driven by ego, jealousy and a desire to slow down a competitor." The startup noted that days after Musk entered the AI race in 2023 he called for a 6-month moratorium on development of advanced AI.

Elon Musk casts his OpenAI lawsuit as a defense of charity

STORY: Elon Musk took the stand on Tuesday in a high-stakes trial over the future of OpenAI, casting his lawsuit against the ChatGPT maker as a defense of charitable giving. :: Archive Musk, the world's richest person, is suing OpenAI, its co-founder and Chief Executive Sam Altman and its President Greg Brockman saying they betrayed him and the public by abandoning OpenAI's mission to be a benevolent steward of AI for humanity, and transforming the nonprofit into a profit-seeking juggernaut. Musk and Altman co-founded OpenAI in 2015. In court the Tesla and SpaceX CEO characterized the company as his brainchild. Musk told jurors Tuesday that, quote, "If we make it okay to loot a charity, the entire foundation of charitable giving in America will be destroyed." Jurors also heard from OpenAI's attorney William Savitt, who said in his opening statement that it was Musk who pushed to turn OpenAI into a for-profit company, one he hoped to lead. Savitt said Musk filed the lawsuit only after those efforts failed. "We are here," he said, "because Musk did not get his way." :: Archive Musk's lawyer said in his opening statement that it was the OpenAI defendants who were greedy for money, as that company began pulling in investors like Microsoft, which put $10 billion into OpenAI in 2023. Musk started his own AI business, xAI, in the same year. :: Archive While Musk described OpenAI as a charity, the organization called itself a nonprofit artificial intelligence research company in a 2015 post, "Introducing OpenAI." :: Archive Musk is seeking $150 billion in damages from OpenAI and Microsoft, one of its largest investors, with proceeds going to OpenAI's charitable arm. A lawyer for Microsoft said in his opening statement that the company didn't do anything wrong, and has been a, quote, "responsible partner." Musk is expected to resume his testimony on Wednesday.

Elon Musk slams OpenAI rival ahead of landmark trial in California: 'Scam Altman'

The high-stakes trial over the future of OpenAI kicked off on Tuesday - but not before Elon Musk unleashed a flurry of social media posts that slapped OpenAI's CEO Sam Altman with the moniker "Scam Altman." Ahead of opening statements, lawyers for OpenAI on raised concerns after Musk posted more than 20 times on X a day earlier during jury selection, at one point writing, "Scam Altman and Greg Stockman stole a charity. Full stop." Musk, in response, told the federal courtroom in Oakland, Calif., he was responding to OpenAI's own public statements about the case. US District Judge Yvonne Gonzalez Rogers encouraged both sides to adopt a "clean slate," and "control your propensity to use social media to make things worse outside this courtroom." Musk's "Stockman" barb was aimed at OpenAI co-founder Greg Brockman, who along with Musk and Altman on Tuesday agreed to minimize social media activity during the trial. The case centers on claims that OpenAI abandoned its founding nonprofit mission in favor of becoming a for-profit company backed by billions in investment from Microsoft. "This was a horse of a totally different color," said Musk's lawyer Steve Molo, a partner at Molo Lamken LLP, in opening statements. "It was no longer open source. It was no longer operating for the good of humanity. So Elon hired a lawyer to investigate." Molo urged jurors to listen closely to testimony given by UC Berkeley AI researcher and professor Stuart Russell and former Columbia Law School dean David Schizer who would detail the bizarre and unethical switcheroo that OpenAI is trying to pull off. "No one should be allowed to steal a charity," Molo said. "To steal a charity is absolutely wrong." Musk's lawsuit accuses Altman and Brockman of betraying OpenAI's original mission to serve as a nonprofit steward of artificial intelligence for the benefit of humanity, instead transforming it into a profit-driven enterprise. Musk is seeking $150 billion in damages from OpenAI and Microsoft, with any proceeds intended for OpenAI's charitable arm. He is also asking the court to restore OpenAI's nonprofit status and remove Altman and Brockman from leadership roles. Musk, who co-founded OpenAI in 2015 and contributed about $38 million in early funding, has said the company's shift to a for-profit structure in 2019 occurred after he left its board. OpenAI disputes his claims, arguing that Musk supported the transition at the time and only brought the lawsuit after failing to become CEO and later launching his own AI company. The trial is expected to feature testimony from several prominent figures, including Musk, Altman, and Microsoft CEO Satya Nadella. Jurors will review years of internal communications and documents to determine whether OpenAI's leadership violated its founding principles. If liability is established, the court will later consider potential remedies. Judge Gonzalez Rogers has indicated she wants jurors to begin deliberating on liability by May 12. The case, which traces OpenAI's evolution from a nonprofit research lab to a company valued in the hundreds of billions of dollars, could have significant implications for the future of the organization and the broader artificial intelligence industry. The trial has already offered rare glimpses at Silicon Valley drama and is expected to spill more inside gossip and dirty laundry in the weeks ahead. Among the evidence that OpenAI has cited is a text exchange between Musk and Zilis just before he quit OpenAI's board in 2018. Zilis, who has borne several of Musk's children, asked him whether she should stay "close and friendly" with OpenAI to "keep info flowing." "Close and friendly," Musk replied, according to court documents. "But we are going to actively try to move three or four people from OpenAl to Tesla."

Billionaire Elon Musk enters courtroom showdown with OpenAI

SAN FRANCISCO -- Jury selection is to begin Monday in a high-profile legal battle between billionaire Elon Musk and artificial intelligence startup OpenAI, which he accuses of betraying its non-profit mission. The clash in a courtroom across the bay from San Francisco pits the world's richest man against a startup that Musk once backed and now competes against in the booming AI sector. OpenAI's ChatGPT is a formidable rival to the Grok chatbot made by Musk's xAI lab. While the lawsuit filed by Musk is part of a feud between him and OpenAI chief executive Sam Altman, it spotlights a debate whether AI should ultimately benefit the privileged few or society as a whole. Court filings lay out how Altman tried to convince Musk to back OpenAI in 2015, acting as a co-founder for a non-profit lab whose technology "would belong to the world." Musk pumped some $38 million into the lab before he left. OpenAI is now valued at $852 billion, with Microsoft among its backers, and is preparing to go public on the stock market. The judge presiding over the trial is aiming for a jury to decide by late May whether OpenAI broke a promise to Musk in its drive to be a leader in AI or just smartly rode the technology to glory. Musk argues in his lawsuit that he was deceived about OpenAI's mission being altruistic. The tycoon cites an email from Altman in 2017 claiming that he remained "enthusiastic about the non-profit structure" of their AI venture after Musk threatened to cut off funding for the lab. Just a few months later, however, OpenAI established a commercial subsidiary in the face of needing to invest hundreds of billions of dollars in data centers to power its technology. Over the course of the following two years, Microsoft pumped billions of dollars into OpenAI and the tech stalwart's stake in the startup is now valued about $135 billion. Microsoft chief executive Satya Nadella is among those slated to testify at the trial. Along with calling for OpenAI to be forced to revert to a pure nonprofit, Musk's suit urges the ousting of Altman and OpenAI co-founder and president Greg Brockman. Musk is also seeking as much as $134 billion in damages and to have the court make OpenAI sever ties with Microsoft. During pre-trial hearings, US Judge Yvonne Gonzalez Rogers mused that Musk team seemed to be "pulling numbers out of the air" when it came to calculating damages. If the jury sides with Musk, it will be left to Rogers to determine any remedies or payment. In what OpenAI has dismissed as a public relations stunt, Musk has vowed that any damages awarded in the suit will go to the startup's nonprofit foundation. OpenAI internal communications brought to light by the lawsuit reveal tensions that culminated with the temporary ouster of Altman as AI chief executive in late 2023. Musk's legal team highlighted a 2017 entry in Brockman's personal journal reasoning that it would be lying if Altman publicly asserted OpenAI would stay a nonprofit but became a corporation a short time later. OpenAI now has a hybrid governance structure giving its nonprofit foundation control over a for-profit arm. In court filings, OpenAI countered that its break-up with Musk was due to his quest for absolute control rather than its nonprofit status. "This case has always been about Elon generating more power and more money for what he wants," OpenAI said in a post on X, a platform Musk owns. "His lawsuit remains nothing more than a harassment campaign that's driven by ego, jealousy and a desire to slow down a competitor." The startup noted that days after Musk entered the AI race in 2023 he called for a 6-month moratorium on development of advanced AI.

Who are the lawyers representing Elon Musk, OpenAI and Microsoft?

Steven Molo, Mr. Musk's lead counsel, told the jury that OpenAI was created "for the benefit of all mankind," at the opening of a trial that centers on how one of the tech industry's most important companies was founded as a nonprofit before morphing into a commercial entity. "No one should be allowed to steal a charity," Mr. Molo said. "To steal a charity is absolutely wrong." Mr. Musk, Sam Altman and other A.I. researchers founded OpenAI as a nonprofit in 2015, vowing to freely share its technology with the rest of the world. But Mr. Musk left the start-up in 2018 after a power struggle with Mr. Altman -- and before the public launch of ChatGPT in 2022 catapulted OpenAI to commercial success. Mr. Musk sued OpenAI in 2024, claiming that the nonprofit he funded with his own large donations took advantage of his financial resources. He also argued that OpenAI breached its founding agreement by putting commercial interests over the public good. Mr. Musk is asking for more than $150 billion in damages from OpenAI and Microsoft, OpenAI's primary partner. He is also asking the court to remove Mr. Altman from the start-up's board and stop a shift the company recently made to operate as a for-profit company. OpenAI and Mr. Altman deny Mr. Musk's claims that they abandoned the nonprofit's mission. They have filed court documents that show Mr. Musk also tried to shift the start-up toward commercial purposes before his exit. The trial's outcome could upend the A.I. landscape. OpenAI, which has emerged as one of the most important tech companies in the world, could be hobbled just as it appears to be heading toward one of the biggest initial public offerings in history. A win for Mr. Musk, who has his own for-profit lab, xAI, would also be a win for OpenAI's competitors, from industry giants like Google to young companies like Anthropic, as well as international competitors such as China's DeepSeek. If Mr. Musk loses, Mr. Altman will likely solidify control of a company that has become synonymous with corporate dysfunction. And OpenAI, which is now valued at about $730 billion, will be free to pursue a data center expansion plan that could cost hundreds of billions of dollars. (The New York Times has sued OpenAI and Microsoft, claiming copyright infringement of news content related to A.I. systems. The two companies have denied the suit's claims.)

Elon Musk wanted 'keys to kingdom,' OpenAI lawyer says at trial - The Economic Times

A high-stakes trial has begun over OpenAI's future. Elon Musk is suing the AI company, alleging it abandoned its mission to benefit humanity. He claims OpenAI, led by Sam Altman and Greg Brockman, became a profit-driven business. OpenAI's lawyers argue Musk wanted control and sued after his plans failed.A high-stakes trial over the future of OpenAI got underway on Tuesday, with lawyers disputing whether Elon Musk was committed to ensuring that artificial intelligence be used to benefit society or instead viewed the Silicon Valley company as a vehicle to amass power for himself. Musk, the world's richest person, is suing OpenAI, its Chief Executive Sam Altman and its President Greg Brockman, saying they betrayed him and the public by abandoning the ChatGPT maker's mission to be a benevolent steward of AI for humanity, and transforming the nonprofit into a profit-seeking juggernaut. Bill Savitt, a lawyer for OpenAI and Altman, said it was Musk who saw dollar signs as he helped finance OpenAI's early growth and pushed it to become a for-profit business, one he might eventually lead as CEO. Savitt said Musk wanted "the keys to the kingdom," and ⁠sued only ⁠after he failed and then in 2023 started his own AI business, xAI. "What he cares about is Elon Musk being on top," Savitt said in his opening statement. "We are here because Mr Musk didn't get his way at OpenAI." OpenAI's lawyer also framed OpenAI's March 2019 creation of a for-profit entity as critical to letting it buy computing power and pay top scientists to stay competitive with Google's DeepMind AI lab. Musk's lawyer Steven Molo told jurors in his opening statement it was the OpenAI defendants who wanted riches for themselves, as OpenAI began drawing investors including Microsoft. "The defendants in the case stole a charity, and we're asking you to hold them accountable," Molo said during his opening statement. "It wasn't a vehicle for people to get rich." Musk, the Tesla and SpaceX founder, is seeking $150 billion in damages from OpenAI and Microsoft, one of its largest investors, with proceeds going to OpenAI's charitable arm. He also wants OpenAI to revert to a nonprofit, ⁠with Altman and Brockman removed as officers and Altman removed from its board. Musk's claims include breach of charitable trust and unjust enrichment. Judge admonishes Musk over social media use Before jurors were seated, U.S. District Judge Yvonne Gonzalez Rogers admonished Musk after OpenAI lawyers complained about his posts on X on Monday, in which he assailed Altman as "Scam Altman" ⁠and accused him of stealing a charity. Rogers said she was loath to issue a gag order, but urged Musk to "try to control your propensity to use social media to make things work outside the courtroom ... Perhaps you've never done that before." Musk agreed to minimize his social media activity, as did Altman. Both are expected to testify at trial, as is Microsoft chief Satya Nadella. The trial could offer a window into some of the egos and personalities that shaped OpenAI as it evolved from a nonprofit research lab in Brockman's apartment to a company worth more than $850 billion. It also risks complicating OpenAI's plans for a potential initial public offering by casting doubt on its leadership, and could intensify Americans' fears about AI technology more broadly. OpenAI was co-founded by Musk and Altman in 2015 with a goal of developing AI to benefit humanity and fend off rivals such as Google. Lawyers dispute importance of AI safety to Musk Molo said "Elon became more worried" as the technology advanced, and collaborated with Altman to "develop AI safely" after a meeting with U.S. President Barack Obama in 2015 did not address AI's risks. Recruiting top AI scientists like Ilya Sutskever was part of that process, Molo said. Savitt countered that AI safety wasn't a priority for Musk, and that Musk denigrated OpenAI employees who focused on it. "Jackasses is what he called them," Savitt said. Musk has said he provided about $38 million to OpenAI ⁠for its original mission, only to see OpenAI create a for-profit entity 13 months after he left its board. Molo said a major turning point for Musk came when Microsoft invested $10 billion in OpenAI in January 2023. "It violated every commitment (the defendants) made, not just to Elon, but to the world," he said. Russell Cohen, a lawyer for Microsoft, said that company didn't do anything wrong. "Microsoft has been a responsible partner every step of the way," Cohen said in his opening statement. OpenAI recently overhauled structure again OpenAI also faces growing competition from rivals including Anthropic, and is spending billions on computational resources. A potential IPO could value the company at $1 trillion, Reuters has reported. Musk's xAI trails far behind OpenAI in usage. He has folded that business into SpaceX, whose own potential IPO this year could be the largest ever. Last fall, OpenAI overhauled its structure again to become a public benefit corporation, in which the nonprofit and other investors including Microsoft hold stakes. The nonprofit holds a 26% stake, plus warrants if OpenAI hits certain valuation targets. A public benefit corporation could make OpenAI more investor-friendly while retaining its charitable origins.

AI united Altman and Musk, then drove them apart

New York (AFP) - Elon Musk and Sam Altman bonded over artificial intelligence in a project that became OpenAI, but a clash of visions will see the polarizing figures face off in court in a trial that opens next week. Silicon Valley lore traces their first meeting back to 2012, in an encounter prompted by investor Geoff Ralston. Nearly 14 years younger than Musk, who was born in June of 1971, Altman was said to be impressed by the Tesla chief's powers of persuasion. While yet to reach the age of 30, Altman already had a tech world reputation as a brilliant dealmaker. Altman's unassuming, friendly demeanor contrasted sharply with Musk's abrasive style, but they shared an entrepreneurial spirit and a penchant for risk-taking. Libertarian Musk and the apolitical Altman found common ground in a shared belief about the future of AI. Musk saw Google, and its subsidiary DeepMind, as out to create AI that thinks sharper than people do with little regard for controlling it. Just months before OpenAI was officially founded in early 2015, Altman published a blog post calling for measures to "limit the threat" posed by AI, complete with concrete proposals. This philosophy was set as the guiding principle at OpenAI: born a non-profit organization dedicated to the responsible advancement of AI and boasting a commitment to making its research and source code freely accessible to the public. Altman successfully pitched the OpenAI concept to Musk, who went on to invest at least $38 million to get the nascent entity established. Altruistic AI? In February of 2018, the South Africa-born entrepreneur behind Tesla, SpaceX and other companies resigned from OpenAI's board to ostensibly focus on his other commercial endeavors. Behind the scenes, however, Musk and Altman were clashing over a proposed shift of OpenAI to a for-profit business that could attract investors in the capital-intensive AI race. OpenAI completed that transformation in 2025, some three years after its ChatGPT digital assistant made AI and those who build it all the rage in the tech world. After years as a champion of an approach in which AI serves society rather than corporate coffers, Musk muddied his message by launching a private xAI startup in July of 2023. The mission statements for xAI and its chatbot Grok give scant mention to dangers of the technology even though Musk once called it an "existential threat" to humanity. The rift between Altman and Musk widened as the world's richest man moved to Texas and became an ally of US President Donald Trump while OpenAI stayed in San Francisco and focused on improving its technology. Musk has used his social media platform X to go on the offensive with posts that include likening Altman to a "Game of Thrones" character seen as a master manipulator. Musk, 54, even filed a lawsuit seeking to oust 41-year-old Altman as OpenAI chief executive. Selection of jurors in a trial for that case is set for Monday. Altman has fired back on social media, contending Musk's agenda is to rule over the most powerful AI. "The current struggle between the two billionaires is shaped by their egos and belief that the winner will control a new technology," contended Darryl Cunningham, author of a book about Musk. "It seems doubtful to me that either can control AI."

OpenAI trial pitting Elon Musk against Sam Altman kicks off

OAKLAND, California, April 28 (Reuters) - A trial that could help shape the future of artificial intelligence begins on Tuesday, with billionaires Elon Musk and Sam Altman at odds over the evolution of ChatGPT maker OpenAI from a nonprofit to a profit-seeking juggernaut worth hundreds of billions of dollars. Opening statements in Musk's civil lawsuit against OpenAI and Altman will take place in the Oakland, California, federal court, following the selection on Monday of nine jurors. Musk claims that Altman and Greg Brockman, respectively OpenAI's chief executive and president, betrayed him and the public by abandoning the company's mission to be a benevolent steward of AI for the benefit of humanity, and turning it into a "wealth machine" for themselves and investors. The world's richest person is seeking $150 billion in damages from OpenAI and Microsoft, one of its largest investors, with proceeds going to OpenAI's charitable arm. He also wants OpenAI to revert to a nonprofit, with Altman and Brockman removed as officers and Altman removed from its board. Musk, the Tesla and SpaceX founder, has said he provided about $38 million of seed money to OpenAI for its original mission, only to see OpenAI create a for-profit entity in March 2019, a little over a year after he left its board. OpenAI countered that Musk knew about and supported the transformation, and sued only after failing to become CEO, and starting his own AI company to stunt its growth. Musk is no longer seeking damages for himself as he pursues breach of charitable trust and unjust enrichment claims. U.S. District Judge Yvonne Gonzalez Rogers has said she wants jurors to begin deliberations on the defendants' liability by May 12. The jurors include nurses, city workers and retirees. If they find the defendants liable, both sides will argue possible remedies to the judge. Musk, Altman and Microsoft chief Satya Nadella are among the witnesses expected to testify, with Musk taking the stand as soon as this week. EGOS AND PERSONALITIES Musk and Altman co-founded OpenAI in 2015 with a goal of developing AI to benefit humanity and fend off rivals such as Google. The trial could offer a window into some of the egos and personalities that shaped OpenAI as it evolved from a nonprofit research lab in Brockman's apartment to a company worth more than $850 billion. It risks complicating OpenAI's plans for a potential initial public offering by casting doubt on its leadership, and could also intensify Americans' fears about AI technology more broadly. OpenAI has argued that Musk was motivated by jealousy in trying to undermine its growth and prop up his own xAI, which he founded in 2023 shortly after OpenAI launched ChatGPT. It has said Musk was involved in discussions to create OpenAI's new structure and demanded to be CEO. Microsoft has denied having colluded with OpenAI and says it teamed up with OpenAI only after Musk left. OpenAI faces growing competition from rivals including Anthropic, and is spending billions on computational resources. A potential IPO could value the company at $1 trillion, Reuters has reported. Musk's xAI trails far behind OpenAI in usage. He has folded that business into his rocket company SpaceX, whose own potential IPO this year could be the largest ever. Last fall, OpenAI overhauled its structure again to become a public benefit corporation, in which the nonprofit and other investors including Microsoft hold stakes. The nonprofit holds a 26% stake, plus warrants if OpenAI hits certain valuation targets. A public benefit corporation could make OpenAI more investor-friendly while retaining its charitable origins. (Reporting by Deepa Seetharaman in Oakland, California; Editing by Daniel Wallis)

Elon Musk's long-awaited courtroom battle with Sam Altman poised to spill Silicon Valley dirt

A long-anticipated courtroom battle between Elon Musk and Sam Altman kicked off in California Monday -- and the legal brawl is poised to spill mounds of inside gossip and dirty laundry from Silicon Valley in the weeks ahead. In addition to Musk and Altman, witnesses in the case -- in which Musk has accused Altman's OpenAI of breaking a pledge to share its technology openly as a nonprofit -- include Shivon Zilis, who has been accused of spying on OpenAI as a former board member, even as she carried on a romance with Musk. Among the evidence that OpenAI has cited is a text exchange between Musk and Zilis just before he quit OpenAI's board in 2018. Zilis, who has borne several of Musk's children, asked him whether she should stay "close and friendly" with OpenAI to "keep info flowing." "Close and friendly," Musk replied, according to court documents. "But we are going to actively try to move three or four people from OpenAl to Tesla." US District Judge Yvonne Gonzalez Rogers ruled last month that Musk's relationship with Zilis is "highly relevant to Zilis's credibility and Zilis's role as a conduit between Musk and OpenAI." Elsewhere, the judge has limited what the jury will hear in the trial, which conducted jury selection on Monday with opening arguments slated to begin Tuesday. That includes allegations of Musk's reported use of drugs including "rhino ketamine" -- previously raised during depositions. The judge, howevever, did allow questioning about Musk's attendance at the 2017 "Burning Man" festival despite objections from Musk's attorneys, finding it relevant to whether he was fully engaged in key negotiations over OpenAI's restructuring at the time. Elsewhere, embarrassing court filings thus far include an incendiary text exchange between Musk and Mark Zuckerberg that was revealed in March, in which Meta's CEO assured Musk that Meta was "on alert" to remove posts involving doxxing or threats. After responding with a heart emoji, Musk asked Zuckerberg, "Are you open to the idea of bidding on the OpenAI IP with me and some others?" to which Zuckerberg replied, "Want to discuss live?" Other messages that have surfaced ahead of the court case include a 2016 email exchange between Musk and Altman themselves, who -- before Musk abandoned their partnership in 2018 just three years after they started it -- discussed potential deals with other tech giants to secure computing power. In one such exchange, Musk said he'd prefer to partner with Microsoft over Amazon because Bezos "is a bit of a tool". In another, Altman thanked Musk for his early support: "you're my hero," and adding that OpenAI might not have existed without him. "It really (expletive) hurts when you publicly attack OpenAI," Altman added. Musk apologized, but emphasized that "the fate of civilization is at stake." Other big names taking the stand could include Satya Nadella, CEO of Microsoft, which on Monday granted OpenAI more freedom to partner with its rivals following more than a year of contentious back-and-forth over Microsoft's grip on the company. In the suit, Musk alleges that Altman and his OpenAI co-founder Greg Brockman violated OpenAI's original mission by shifting the company to a for-profit model to enrich themselves. Musk has vowed to donate proceeds from any judgement to charity. OpenAI calls Musk's lawsuit a case of sour grapes and is part of a "broader strategy of harassment aimed at slowing us down and advantaging his own AI company, xAI." Other potential witnesses include Thinking Machines CEO Mira Murati, a former top engineer at OpenAI who had participated in Altman's temporary ouster as CEO in 2023. Musk's personal assistant and fixer Jared Birchall also may be called to the stand over accusations he filed paperwork to create for-profit incarnation of OpenAI. "His own words and actions speak for themselves," OpenAI said in court papers. "Elon not only wanted, but actually created, a for-profit as OpenAI's proposed new structure."

Elon Musk faces off with OpenAI in court over broken promises - The Economic Times

Elon Musk is in court with OpenAI. He claims the AI company betrayed its original non-profit mission. Musk, a former backer, now competes with OpenAI. The trial could shape the AI industry's future. OpenAI's CEO Sam Altman is also present. The case highlights the debate on AI's societal benefit. Musk seeks to revert OpenAI to a pure non-profit.Elon Musk showed up for opening remarks Tuesday in a courtroom showdown with OpenAI over whether the artificial intelligence company betrayed its non-profit mission. The legal clash across the bay from San Francisco pits the world's richest person against a startup Musk once backed and now competes with in the booming AI sector. Musk appeared at the federal court in Oakland, seen passing through metal detectors, ahead of opening arguments for a trial that could have far-reaching consequences for the future of the AI industry if the Tesla tycoon prevails. OpenAI's chief executive, Sam Altman - once a Musk partner and now widely seen as his nemesis - was also seen entering the building. The ChatGPT-maker is a formidable rival to the chatbot Grok, made by Musk's xAI lab. OpenAI co-founders Sam Altman and Greg Brockman "are confident in their position and look forward to the facts being known," their attorney, William Savitt, said outside the courthouse after jurors were selected Monday. While Musk's lawsuit is part of a feud between him and Altman, it spotlights a debate over whether AI should ultimately serve to benefit a privileged few or society as a whole. Court filings lay out how Altman convinced Musk to back OpenAI in 2015, acting as a co-founder for a non-profit lab whose technology "would belong to the world." Musk pumped millions of dollars into the group, which he subsequently left. OpenAI established a commercial subsidiary as it needed hundreds of billions of dollars for data centers to power its technology. Musk argues in his lawsuit that he was deceived about OpenAI's mission being altruistic. He is expected to testify in the trial, possibly as early as Tuesday. OpenAI slams 'harassment campaign' In a social media post on Monday, Musk derisively called the OpenAI chief "Scam Altman." San Francisco-based OpenAI has countered in court filings that its break-up with Musk was due to the Tesla tycoon's quest for absolute control rather than its nonprofit status. "His lawsuit remains nothing more than a harassment campaign that's driven by ego, jealousy and a desire to slow down a competitor," OpenAI said of Musk in a recent X post. The judge presiding over the trial will decide by late May -- guided by an advisory jury's findings -- whether OpenAI broke a promise to Musk in a drive to lead in AI or just smartly rode the technology to glory. Along with calling for OpenAI to be forced to revert to a pure nonprofit, Musk's suit urges the ouster of co-founders Altman and Brockman, who is the startup's president. Musk, who had sought as much as $134 billion in damages, has since renounced any personal benefit, pledging to redirect any award to the OpenAI nonprofit. Judge Yvonne Gonzalez Rogers has reserved the right to determine any remedies herself, without the jury's input. OpenAI now has a hybrid governance structure giving its nonprofit foundation control over a for-profit arm.

Elon Musk Assails Sam Altman on Social Media Before OpenAI Trial Opens

Musk's posts on his X social media platform have pushed his narrative that OpenAI has lost its way. Before opening statements began in the trial between Elon Musk and OpenAI on Tuesday, the world's richest man was already making his case on X, the social media platform he owns. Mr. Musk went on the attack, posting more than two dozen times on Monday about OpenAI; its chief executive, Sam Altman; and the trial. Mr. Musk, who was one of the founders of OpenAI but left in 2018, pushed a narrative to his nearly 240 million followers that he had helped create the artificial intelligence lab to save humanity, but that OpenAI had lost its way after becoming a for-profit company. "Scam Altman and Greg Stockman stole a charity," Mr. Musk posted at one point, using pointed nicknames for Mr. Altman and Greg Brockman, the president of OpenAI. "Greg got tens of billions of stock for himself and Scam got dozens of OpenAI side deals with a piece of the action for himself." (The New York Times has sued OpenAI and its partner, Microsoft, accusing them of copyright infringement of news content related to A.I. systems. OpenAI and Microsoft have denied those claims.) Mr. Musk has long used the platform formerly known as Twitter to shape public opinion around presidential elections, global politics and other issues. In March, he posted on X about another trial, a case in which he had been accused of misleading investors when he bought Twitter in 2022. Mr. Musk tried casting doubts about the case, but a jury eventually found him partly liable for investors' losses in the deal. His posts on X are unlikely to affect the jury in his trial against OpenAI, given that jurors are typically instructed to avoid news and social media. But that has rarely stopped Mr. Musk from drumming up conversations on X that reinforce his point of view. "The main difference between Elon Musk and Sam Altman: Elon Musk actually changes the world for the better and saves lives," read one post that Mr. Musk reposted on Monday. "Sam Altman? He mostly just takes." Some X users on Monday reported seeing a weeks-old post in their timelines featuring a New Yorker article critical of Mr. Altman. X had labeled the post as "boosted" by Mr. Musk's account, according to some of those users, which suggests the tech billionaire may have promoted the post. Mr. Musk has made a slew of changes to X to favor his interests, including slowing or restricting access to certain news outlets and competing platforms, and banning some reporters. Mr. Musk and an X representative did not respond to requests for comment.

Elon Musk's trial against Sam Altman to reveal the ongoing power struggle for OpenAI

April 27 (Reuters) - The bitter legal fight between Elon Musk and the leading artificial intelligence firm, OpenAI, led by Sam Altman, may come down to a few pages in one executive's personal diary. "This is the only chance we have to get out from Elon," wrote Greg Brockman, OpenAI's president and a co-founder, in the fall of 2017. "Is he the 'glorious leader' that I would pick?" Brockman's diary entry is part of the thousands of pages of internal documents revealed in court since Musk, one of the original co-founders of OpenAI, sued the company, its chief executive Altman and Brockman in 2024. Musk is seeking $150 billion in damages from OpenAI and Microsoft, one of its largest investors, according to a person involved in the case, with proceeds going to OpenAI's charitable arm. Jury selection for the trial is planned for Monday in the Oakland, California, federal court, with opening arguments expected on Tuesday. The documents offer a rare window into egos and personalities that have shaped OpenAI as it evolved from a nonprofit research lab in Brockman's apartment to a tech giant worth more than $850 billion. They also shed light on how the CEOs with the most power to shape generative AI think about the technology. The trial risks complicating OpenAI's plans for a potential initial public offering by casting doubt on its leadership. A drumbeat of unflattering disclosures could also intensify Americans' growing pessimism about AI technology more broadly. The case centers on Musk's claim that OpenAI, Altman and Microsoft betrayed OpenAI's original mission as a nonprofit to benefit humanity by forming a for-profit entity in March 2019, 13 months after Musk left the OpenAI board. Musk said the defendants kept him in the dark about their plans, exploited his name and financial support to create a "wealth machine" for themselves, and owe damages for having conned him and the public. He also wants OpenAI to revert to a nonprofit, for Altman and Brockman to be removed as officers, and for Altman to be removed from its board, among other measures. OpenAI's lawyers counter that Musk is motivated by a compulsion to control OpenAI and prop up his own AI lab xAI, which he founded in 2023 shortly after OpenAI launched ChatGPT and sparked the AI boom. The company says Musk was involved in discussions to create OpenAI's new structure and demanded to be CEO. Microsoft, also a defendant, denies that it colluded with OpenAI and says it teamed up with OpenAI only after Musk left. HEAVY HITTERS EXPECTED TO TESTIFY Heavy hitters in Silicon Valley including Musk, Altman and Microsoft CEO Satya Nadella are expected to testify in person. Shivon Zilis, a former OpenAI board member who is also mother to four of Musk's children, is likely to be a key witness, with OpenAI lawyers arguing that she funneled information about OpenAI to Musk. The trial comes at a sensitive time for both sides. OpenAI faces unprecedented competition from rivals including Anthropic, and is spending billions on computational resources. It is also preparing for a potential blockbuster IPO that could value the company at $1 trillion, Reuters has reported. Musk's companies face similar pressures. His xAI, now folded into his rocket company SpaceX, trails far behind OpenAI in usage. SpaceX also plans to go public this year in what could be the biggest IPO ever. According to court papers, Musk gave about $38 million of seed money to OpenAI between 2016 and 2020, mostly before he left the board. In 2019, OpenAI restructured as a for-profit unit governed by the nonprofit. That let it accept money from outside investors while being accountable for the nonprofit's original mission. Last fall, OpenAI overhauled its structure again to become a public benefit corporation, in which the nonprofit and other investors including Microsoft hold stakes. The nonprofit holds a 26% stake as well as additional warrants if OpenAI hits certain valuation targets. Musk's lawyers calculated damages by multiplying OpenAI's valuation and a portion of the nonprofit's stake that could be attributed to Musk's contributions. His team says between 50% and 75% of the nonprofit's stake can be attributed to Musk. A 'MANHATTAN PROJECT FOR AI' Musk and Altman co-founded OpenAI with a goal of developing AI to benefit humanity and fend off rivals such as Google. Altman approached Musk about the idea in May 2015, branding it the "Manhattan Project for AI," court documents show. Musk's involvement helped OpenAI land top researchers like now-former chief scientist Ilya Sutskever. By mid-2017, Musk began questioning OpenAI's viability, at one point holding back promised funds after clashing with Altman, Brockman and Sutskever, according to court filings. One source of tension was that Musk wanted to be CEO, emails show, which made other co-founders uneasy. Around the same time, Brockman appeared frustrated by Musk's stance, and wondered if turning OpenAI into a profit-making venture could also make him rich. "Financially, what will take me to $1B?" he wrote in his diary. "Accepting Elon's terms nukes two things: our ability to choose (though maybe we could overrule him) and the economics." Musk's lawyers highlighted the entry to show that OpenAI's leaders were more motivated by profit than the mission. By January 2018, Musk appeared to have given up. "OpenAI is on a path of certain failure relative to Google," Musk emailed. In late 2022, OpenAI launched ChatGPT. (Reporting by Deepa Seetharaman in San Francisco and Jonathan Stempel in New York; Editing by Ken Li, Noeleen Walder and Nick Zieminski)

Elon Musk and OpenAI CEO Sam Altman head to court in high-stakes showdown over AI

Technology tycoons Elon Musk and Sam Altman are poised to face off in a high-stakes trial revolving around the alleged betrayal, deceit and unbridled ambition that blurred the bickering billionaires' once-shared vision for the development of artificial intelligence. The trial, which is scheduled to begin Monday with jury selection, centers on the 2015 birth of ChatGPT maker OpenAI as a nonprofit startup primarily funded by Musk before evolving into a capitalistic venture now valued at $852 billion. The trial's outcome could sway the balance of power in AI -- breakthrough technology that is increasingly being feared as a potential job killer and an existential threat to humanity's survival. Those perceived risks are among the reasons that Musk, the world's richest person, cites for filing an August 2024 lawsuit that will now be decided by a jury and US District Judge Yvonne Gonzalez Rogers in Oakland, California. The civil lawsuit accuses Altman, OpenAI's CEO, and his top lieutenant, Greg Brockman, of double-crossing Musk by straying from the San Francisco company's founding mission to be an altruistic steward of a revolutionary technology. The lawsuit alleges they shifted into a moneymaking mode behind his back. OpenAI has brushed off Musk's allegations as an unfounded case of sour grapes that's aimed at undercutting its rapid growth and bolstering Musk's own xAI, which he launched in 2023 as a competitor. Musk, who invested about $38 million in OpenAI from December 2015 through May 2017, initially was seeking more than $100 billion in damages. But any damages now are likely to be much smaller after a series of pre-trial rulings that went against Musk. Musk has since abandoned a bid for damages for himself and instead is seeking an unspecified amount of money to be paid to fund the altruistic efforts of OpenAI's charitable arm. The money would be paid primarily by OpenAI's for-profit operations, and Microsoft, which became the company's biggest investor after Musk cut off his funding. Musk's lawsuit also seeks Altman's ouster from OpenAI's board. Musk's decision to stop funding the company contributed to a bitter falling out between the former allies. Musk says he was responding to deceptive conduct that OpenAI's board picked up on when it fired Altman as CEO in 2023 before he got his job back days later. But the trial also carries risks for Musk, who last month was held liable by another jury for defrauding investors during his $44 billion takeover of Twitter in 2022. Any damaging details about Musk and his business tactics could be particularly hurtful now because his rocket ship maker, SpaceX, plans to go public this summer in an initial public offering that could make him the world's first trillionaire. However it turns out, the trial is expected to provide riveting theater, with contrasting testimony from two of technology's most influential and polarizing figures in the 54-year-old Musk and the 41-year-old Altman. "Part of this is about whether a jury believes the people who will testify and whether they are credible," Gonzalez Rogers said during a court hearing earlier this year while explaining why she believe the case merited a trial. The judge will make the final decision on the case, with the jury serving in an advisory role. Musk, whose estimated fortune stands at about $780 billion, has long been hailed as a visionary for his roles creating digital payment pioneer PayPal, electric automaker Tesla and rocket ship maker SpaceX. But he has also provoked backlashes with his social media commentary, unfulfilled promises about Tesla's self-driving technology and his cost-cutting role last year in President Donald Trump's administration. Some of Musk's erratic behavior has been tied to allegations of taking hallucinogenic drugs, but Gonzalez Rogers ruled that he can't be asked during the trial about his suspected use of ketamine. But the judge is allowing Musk to be questioned about his attendance at the 2017 Burning Man festival in Nevada, a free-wheeling celebration known for widespread drug use. The judge is also allowing Musk to be questioned about his relationship with former OpenAI board member Shivon Zilis, the mother of several of his children. Altman, currently sitting on a roughly $3 billion fortune, didn't emerge in the public consciousness until the late 2022 release of ChatGPT. The tech boom triggered by that conversational chatbot has led some to liken Altman to a 21st-century version of the nuclear bomb inventor, J. Robert Oppenheimer. Although Altman was initially hailed as trailblazer he is now facing blowback amid worries about AI's potential dangers. Earlier this month, the New Yorker magazine published a profile that painted him as an unscrupulous executive. Days later, a 20-year-old man worried about AI's effect on humanity was arrested on attempted murder charges after throwing a Molotov cocktail at Altman's San Francisco home. The dueling testimonies of Altman and Musk are expected to open a window into some of the thinking that helped trigger the AI race, as well as the unraveling of their friendship. The kinship was forged in 2015 when they agreed to build AI in a more responsible and safer way than the profit-driven companies controlled by Google co-founders Larry Page and Sergey Brin and Facebook founder Mark Zuckerberg, according to evidence submitted ahead of the trial. Details of the bitter break between the two men were captured in a February 2023 email exchange that surfaced as part of the evidence leading up to the trial. After letting Musk know "you're my hero," Altman tells him: "I am tremendously thankful for everything you've done to help -- I don't think OpenAI would have happened without you -- and it really (expletive) hurts when you publicly attack OpenAI." Musk's response: "I hear you and it is certainly not my intention to be hurtful, for which I apologize, but the fate of civilization is at stake."

Elon Musk vs OpenAI: Inside the battle over broken promises

A high-stakes legal battle begins today as Elon Musk sues Sam Altman's OpenAI, alleging the AI giant abandoned its non-profit mission for profit. Musk claims broken promises regarding open-source development and public good, seeking billions in damages. OpenAI denies the allegations, stating partnerships are vital for AI advancement. One of Silicon Valley's most closely watched legal clashes is set to begin today. Opening statements are scheduled to take place in a courtroom battle between billionaire Elon Musk and Sam Altman's OpenAI, centred on whether the company abandoned its original non-profit purpose. At the heart of the dispute lies a fundamental question: did OpenAI stay true to the vision it was founded on, or did it drift into something else entirely? Here's everything you need to know: The jury Jury selection wrapped up on Monday at a federal court in Oakland, California, with Judge Yvonne Gonzalez Rogers presiding. The trial is expected to shape not just OpenAI's future but potentially the broader direction of artificial intelligence (AI). The presiding judge and legal teams from both sides carefully questioned potential jurors to identify any bias. Some individuals admitted to holding unfavourable opinions about Musk, with one remarking, "Elon doesn't care about people." Despite this, most insisted they could remain impartial. The final jury includes a mix of everyday professionals, such as a nurse and a painting business owner, reflecting a cross-section of the public now tasked with weighing the dispute. The judge reassured the jury that the proceedings were'n't going to be highly technical. "This is just a case about promises and breaches of promises, it won't get technical at all," she said. The breach Musk's case centres on what he describes as a breach of founding principles. When OpenAI was established in 2015, it was set up as a non-profit with a mission to develop AI safely for the benefit of humanity, not for private profit. Musk contributed roughly $38 million in the early days. He claims this funding was given with the understanding that OpenAI's work would remain open-source and aligned with the public good. According to Musk, that vision began to unravel after he left the organisation following internal disagreements. He argues that the shift came when Altman secured significant investment from Microsoft, transforming OpenAI into a for-profit entity. The lawsuit goes further, accusing Altman and OpenAI president Greg Brockman of deliberately misleading Musk. It claims they leveraged his concerns about the existential risks of AI to gain his support, while privately planning a different direction. A key piece of evidence comes from Brockman's personal notes, which was referenced by Judge Rogers in a January ruling that allowed the case to proceed. In a 2017 entry, Brockman wrote: "This is the only chance we have to get out from Elon ... Financially, what will take me to $1B?" He also noted that accepting Musk's conditions would "nuke" both "our ability to choose" and "the economics." "Elon Musk's case against Sam Altman and OpenAI is a textbook tale of altruism versus greed. Altman, in concert with other defendants, intentionally courted and deceived Musk, preying on Musk's humanitarian concern about the existential dangers posed by AI," the lawsuit states. Musk & Microsoft Musk seems especially irked by OpenAI's tie-up with Microsoft. The tech giant has invested about $13 billion in the company and secured exclusive rights to integrate its technology into products. He argues this agreement fundamentally altered OpenAI's nature, shifting it from a public-interest research lab into a commercially driven business. Musk is seeking approximately $134 billion in damages and has also called for Altman's removal as CEO. However, Musk has said he does not intend to keep any financial award personally, requesting that any compensation instead be directed to OpenAI's non-profit arm. OpenAI denies allegations OpenAI has rejected all claims made in the lawsuit. The company maintains that it remains committed to its original mission of ensuring that artificial general intelligence (AGI) benefits humanity. It argues that partnerships like the one with Microsoft are necessary, pointing out the immense costs involved in developing cutting-edge AI systems. The company has also pushed back against Musk's narrative, suggesting his departure was not about principles but about control. According to OpenAI, Musk sought full authority over the organisation in 2018. When Altman, Brockman, and cofounder Ilya Sutskever declined, he chose to leave. In an earlier blog post, OpenAI alleged that Musk had even proposed merging the company with Tesla. "When we wouldn't agree to his terms, he walked away and told us we had a '0% chance' of success. He turned out to be wrong, though, and a resentful Elon has attacked OpenAI ever since," the post reads. The company also addressed Musk's financial contribution: "Elon donated $38 million to the OpenAI nonprofit, which was spent exactly as intended and in service of the mission. Despite claiming and receiving a tax deduction for this donation, he's now asking the court to treat it as an investment that entitles him to significant ownership of OpenAI," the blog post states. With billions of dollars, reputations, and the future of AI at stake, the outcome could have consequences far beyond the courtroom.

What are Elon Musk's claims against Altman and OpenAI?

Mr. Musk, Sam Altman and other A.I. researchers founded OpenAI as a nonprofit in 2015, vowing to freely share its technology with the rest of the world. But Mr. Musk left the start-up in 2018 after a power struggle with Mr. Altman -- and before the public launch of ChatGPT in 2022 catapulted OpenAI to commercial success. Mr. Musk sued OpenAI in 2024, claiming that the nonprofit he funded with his own large donations took advantage of his financial resources. He also argued that OpenAI breached its founding agreement by putting commercial interests over the public good. Mr. Musk is asking for more than $150 billion in damages from OpenAI and Microsoft, OpenAI's primary partner. He is also asking the court to remove Mr. Altman from the start-up's board and stop a shift the company recently made to operate as a for-profit company. OpenAI and Mr. Altman deny Mr. Musk's claims that they abandoned the nonprofit's mission. They have filed court documents that show Mr. Musk also tried to shift the start-up toward commercial purposes before his exit. The trial's outcome could upend the A.I. landscape. OpenAI, which has emerged as one of the most important tech companies in the world, could be hobbled just as it appears to be heading toward one of the biggest initial public offerings in history. A win for Mr. Musk, who has his own for-profit lab, xAI, would also be a win for OpenAI's competitors, from industry giants like Google to young companies like Anthropic, as well as international competitors such as China's DeepSeek. If Mr. Musk loses, Mr. Altman will likely solidify control of a company that has become synonymous with corporate dysfunction. And OpenAI, which is now valued at about $730 billion, will be free to pursue a data center expansion plan that could cost hundreds of billions of dollars. (The New York Times has sued OpenAI and Microsoft, claiming copyright infringement of news content related to A.I. systems. The two companies have denied the suit's claims.)

Opening remarks Tuesday in Elon Musk versus OpenAI trial

A courtroom showdown begins Tuesday between billionaire Elon Musk and OpenAI. Musk alleges the artificial intelligence company betrayed its non-profit mission. OpenAI counters that Musk sought absolute control. The legal battle spotlights the debate on AI's benefit to society. The judge will decide OpenAI's fate by late May. Opening remarks are set for Tuesday in a courtroom showdown between billionaire Elon Musk and OpenAI over whether the artificial intelligence company betrayed its non-profit mission. The legal clash across the bay from San Francisco pits the world's richest person against a startup Musk once backed and now competes with in the booming AI sector. OpenAI's ChatGPT is a formidable rival to the chatbot Grok, made by Musk's xAI lab. OpenAI cofounders Sam Altman and Greg Brockman "are confident in their position and look forward to the facts being known," their attorney, William Savitt, said outside the courthouse after jurors were selected Monday. While Musk's lawsuit is part of a feud between him and OpenAI Chief Executive Altman, it spotlights a debate as to whether AI should ultimately serve to benefit a privileged few or society as a whole. Court filings lay out how Altman convinced Musk to back OpenAI in 2015, acting as a co-founder for a non-profit lab whose technology "would belong to the world." Musk pumped millions of dollars into the lab, which he subsequently left. OpenAI established a commercial subsidiary as it needed hundreds of billions of dollars for data centres to power its technology. Musk argues in his lawsuit that he was deceived about OpenAI's mission being altruistic. He fired off a social media post on Monday calling the OpenAI chief "Scam Altman." San Francisco-based OpenAI has countered in court filings that its break-up with Musk was due to the Tesla tycoon's quest for absolute control rather than its nonprofit status. "His lawsuit remains nothing more than a harassment campaign that's driven by ego, jealousy and a desire to slow down a competitor," OpenAI said of Musk in a recent X post. The judge presiding over the trial will decide by late-May -- guided by an advisory jury's findings -- whether OpenAI broke a promise to Musk in a drive to lead in AI or just smartly rode the technology to glory. Along with calling for OpenAI to be forced to revert to a pure nonprofit, Musk's suit urges the ouster of co-founders Altman and Brockman, who is the startup's president. Musk, who had sought as much as $134 billion in damages, has since renounced any personal benefit, pledging to redirect any award to the OpenAI nonprofit. Judge Yvonne Gonzalez Rogers has reserved the right to determine any remedies herself, without the jury's input. OpenAI now has a hybrid governance structure giving its nonprofit foundation control over a for-profit arm. Musk, who gutted the trust and safety team at Twitter after buying the social media platform that he renamed X, faces the challenge of convincing a jury and a judge that the company behind ChatGPT was built on a lie.

Oakland, which is playing host to the trial, is not exactly known as a tech hub.

Mr. Musk, Sam Altman and other A.I. researchers founded OpenAI as a nonprofit in 2015, vowing to freely share its technology with the rest of the world. But Mr. Musk left the start-up in 2018 after a power struggle with Mr. Altman -- and before the public launch of ChatGPT in 2022 catapulted OpenAI to commercial success. Mr. Musk sued OpenAI in 2024, claiming that the nonprofit he funded with his own large donations took advantage of his financial resources. He also argued that OpenAI breached its founding agreement by putting commercial interests over the public good. Mr. Musk is asking for more than $150 billion in damages from OpenAI and Microsoft, OpenAI's primary partner. He is also asking the court to remove Mr. Altman from the start-up's board and stop a shift the company recently made to operate as a for-profit company. OpenAI and Mr. Altman deny Mr. Musk's claims that they abandoned the nonprofit's mission. They have filed court documents that show Mr. Musk also tried to shift the start-up toward commercial purposes before his exit. The trial's outcome could upend the A.I. landscape. OpenAI, which has emerged as one of the most important tech companies in the world, could be hobbled just as it appears to be heading toward one of the biggest initial public offerings in history. A win for Mr. Musk, who has his own for-profit lab, xAI, would also be a win for OpenAI's competitors, from industry giants like Google to young companies like Anthropic, as well as international competitors such as China's DeepSeek. If Mr. Musk loses, Mr. Altman will likely solidify control of a company that has become synonymous with corporate dysfunction. And OpenAI, which is now valued at about $730 billion, will be free to pursue a data center expansion plan that could cost hundreds of billions of dollars. (The New York Times has sued OpenAI and Microsoft, claiming copyright infringement of news content related to A.I. systems. The two companies have denied the suit's claims.)

Musk-Altman trial opens: Revisiting OpenAI's shift from nonprofit to for-profit

A major legal battle begins Tuesday in Oakland. Elon Musk is suing Sam Altman and OpenAI. Musk claims OpenAI abandoned its nonprofit roots for profit. OpenAI denies this, stating changes were necessary. The case centers on OpenAI's founding mission to benefit all humanity. This dispute highlights the evolving nature of AI development and its commercialization. Opening arguments are set to begin on Tuesday in a federal courtroom in Oakland, California, in Elon Musk vs Sam Altman, a case focussed on whether OpenAI deviated from its founding structure and mission. Musk, a cofounder of OpenAI, alleges that the organisation breached its original commitment to operate as a nonprofit and instead evolved into a profit-driven enterprise. OpenAI and its chief executive Sam Altman deny the claim, stating that structural changes were both necessary and consistent with the organisation's long-term goals. The dispute dates back to OpenAI's founding in December 2015 as a nonprofit entity with the stated objective of ensuring that artificial general intelligence (AGI) "benefits all of humanity." At the time, the organisation's founders, including Musk and Altman, pledged funding and designed the organisation to prioritise research outcomes over financial returns, as reported by AFP. Musk left OpenAI in 2018 following disagreements with the board. In the period that followed, the organisation faced increasing financial demands associated with developing advanced AI systems. In 2019, OpenAI introduced a for-profit subsidiary, OpenAI LP, under a "capped-profit" model. This structure allowed the company to raise external capital while limiting investor returns. At the time, OpenAI stated that no existing legal structure adequately balanced capital needs with its mission, ET had reported citing news website Semafor. That same year, Microsoft invested $1 billion in OpenAI, becoming a key partner and providing cloud infrastructure for its systems. Under a recently reworked agreement, Microsoft will no longer have exclusive access to OpenAI's models and products. Microsoft is expected to remain OpenAI's primary cloud partner and will retain access to its technology, including the intellectual property behind ChatGPT, through at least 2032. Musk has since questioned the transition, arguing that a nonprofit he supported financially had effectively become a large commercial enterprise. He has publicly questioned how such a transformation aligns with the organisation's original mandate. Between 2019 and 2023, Microsoft invested more than $13 billion in OpenAI, which gave the tech giant roughly 49% of OpenAI's future profits. OpenAI maintains that its nonprofit entity continues to oversee and control the for-profit arm, preserving its governance framework. However, the corporate structure has continued to evolve. Transition to public benefit corporation In October 2025, OpenAI outlined plans to further modify its for-profit arm, including proposals to convert it into a public benefit corporation and revise investor return limits. The restructuring followed discussions with regulators, including the attorneys general of Delaware and California, who did not oppose the changes after reviewing how the structure balances commercial and public-interest objectives. Under the revised framework, the nonprofit, which is now referred to as the OpenAI Foundation, retains control of the for-profit entity and holds significant governance authority. According to board chair Bret Taylor, the changes are intended to simplify corporate structure while enabling greater access to the capital required for developing advanced AI systems. Also Read: Explained: OpenAI and Microsoft's new agreement allowing major restructuring The nonprofit board continues to oversee operations, including through a Safety and Security Committee with the authority to review and potentially halt the release of new technologies. OpenAI has projected substantial financial commitments in the coming years, including large-scale investments in global data centre infrastructure and agreements with chipmakers such as Nvidia, AMD, and Broadcom last year. It is also expanding its computing capacity through partnerships with companies such as Oracle and SoftBank. Musk's lawsuit, filed in 2024 and now proceeding to trial, argues that these structural changes constitute a departure from OpenAI's founding agreement and mission. OpenAI, valued at over $850 billion and eyeing a listing, has called the lawsuit "baseless" and driven by jealousy.

Courtroom clash starts today: Elon Musk takes on Sam Altman -- what's at stake in the OpenAI lawsuit

Elon Musk vs Sam Altman court case: what's at stake in the OpenAI lawsuit - The Musk vs Altman trial over OpenAI nonprofit conversion begins with a massive $852 billion valuation under scrutiny. Jury selection starts in California this week. The case tests if OpenAI broke its nonprofit promise. Elon Musk claims leadership shifted to profit after raising trust-based funding. He seeks up to $150 billion in damages. A 2017 note from Greg Brockman calling the plan "a lie" now drives the case. This trial could redefine AI governance, nonprofit law, and how tech companies scale power.

What Elon Musk's Clash With Sam Altman of OpenAI Is Really About

One of the most controversial and overexposed men in the world is suing another man, who is equally unsympathetic and equally inescapable. Both are insanely rich. It is so tempting to look away. Elon Musk's lawsuit against Sam Altman involves onetime colleagues and buddies who became peevish enemies. Now they would like to take each other down. Happens all the time. These guys just have more lawyers. Ignoring this conflict would be a mistake, however. The rancorous dispute between Mr. Musk and Mr. Altman, which went to trial this week with opening statements in an Oakland, Calif., federal courtroom on Tuesday, goes to the heart of Silicon Valley, a place that has always cloaked itself in virtue. Mr. Altman and Mr. Musk started working on what was supposed to be a different sort of tech lab in 2015. OpenAI was a Manhattan Project for artificial intelligence, a nonprofit venture that would act as a shield against rapacious behavior by less benevolent outfits. The goal was to "shift the dialog toward being about humanity winning rather than any particular group or company," according to a document in the case. Mr. Musk, the chief executive of Tesla, provided the initial funding. Mr. Altman was OpenAI's leader and spokesman. But Mr. Musk says their interests quickly diverged when it became clear just how much money was up for grabs. OpenAI converted to a for-profit company last year. "A textbook tale of altruism versus greed," Mr. Musk asserted in his suit's opening salvo. The fact that the person calling himself an altruist here is likely to become the world's first trillionaire doesn't necessarily make it untrue. In his lawsuit, filed in 2024, Mr. Musk said Mr. Altman, OpenAI president Greg Brockman and others "unjustly enriched" themselves in the development of OpenAI "to the tune of billions of dollars." OpenAI, whose value is approaching $1 trillion, had the inevitable response: No, you're the one who is greedy. The company argued that Mr. Musk walked away when he could not take over the entire enterprise. "This case has always been about Elon generating more power and more money for what he wants," OpenAI said in a statement. One of the few things the moguls agree on is that their feud evokes the works of a certain Elizabethan playwright. Mr. Musk, 54, said in his suit that Mr. Altman's "perfidy and deceit are of Shakespearean proportions." Mr. Altman, 41, mused in a blog post this month that "there has been so much Shakespearean drama between the companies in our field." If there is a Shakespeare play that could sum up this soured friendship, it's "Julius Caesar." Brutus wants to stop Caesar from gaining too much power, or so he says. Caesar is quite surprised that he's being assassinated by a supposed friend. "Et tu, Brute?" he cries. Brutus ends the play as dead as Caesar but is mourned as "the noblest Roman of them all." Mr. Musk should be so lucky to draw such praise. 'For the Good of the World' In the middle of the last decade, Mr. Altman was a Silicon Valley insider running the top start-up incubator, Y Combinator. Ambitious and persuasive, he didn't want just to fund companies. He was on a mission to save humanity, which -- unknown to the masses -- was at great risk. "I think A.I. will probably, most likely, lead to the end of the world," Mr. Altman said in 2015. It was a fear he would often express. Why not, he asked, create a bulwark against the other A.I. companies "for the good of the world"? Mr. Altman drew in Mr. Musk, who was even more worried about where A.I. was heading. "We are summoning the demon," Mr. Musk once said. Immediately, there was a problem. People everywhere work on nonprofit ventures for modest salaries. They sacrifice for their ideals. Mr. Altman knew that would not fly in Silicon Valley. The engineers and scientists would "get start-up-like compensation if it works," he promised. The nonprofit was dead almost before it began. OpenAI is owned by its employees and investors, including Microsoft, Amazon, Nvidia and SoftBank, as well as the OpenAI Foundation. (Mr. Altman has no direct equity in OpenAI but has other investments that make him comfortably a billionaire.) OpenAI is planning to sell shares to the public in one of the richest stock offerings in history. Silicon Valley is the great wellspring of wealth in modern America. Nine of the 10 richest Americans are tech entrepreneurs, with Warren Buffett the only exception. People might be offended by OpenAI's turnabout, but few could say they were shocked. Except the richest man in the world, whose own A.I. venture, xAI, is now part of one of his other companies, SpaceX. SpaceX will soon sell shares to the public as a decidedly for-profit operation. No Happy Ending Tech companies are subject to relatively few constraints these days. Congress is generally passive. Federal regulators have been hobbled. The Trump administration is stocked with venture capitalists and others receptive to tech and its money, as is President Trump. What's left for tech opponents are civil suits. Social media companies face an onslaught of cases. One of the first, in Los Angeles last month, found that Meta and YouTube were to blame for anxiety and depression in a young woman who was a heavy user. "Trials are all we have right now, and things are better because of them," said Max Tegmark, a co-founder of the Future of Life Institute, a nonprofit trying to reduce catastrophic technology risks. "Trials provide information that is not otherwise accessible." The exhibits in the Musk/Altman trial are an example of material that presumably would never have seen the light otherwise. That includes emails between the two leaders as they tried getting OpenAI off the ground. "Do you have any objection to me proactively increasing everyone's comp by 100-200k per year?" Mr. Altman wrote to Mr. Musk in 2015. "I think they're all motivated by the mission here but it would be a good signal to everyone we are going to take care of them over time." The Future of Life Institute gives OpenAI an overall grade of C plus for safety while xAI got a D. "A.I. is less regulated in America than sandwiches," said Mr. Tegmark, who is also a physics professor at the Massachusetts Institute of Technology. "You can't open a sandwich shop without having your kitchen inspected. But you can release an A.I. girlfriend for 11-year-olds and that's fine." A defeat for OpenAI might begin to change that, he said. Some A.I. watchdogs said they would like to see OpenAI brought to justice the way Meta and YouTube were. But they would prefer almost any plaintiff to Mr. Musk. "I don't have long-term faith in a system where we're legislating through private litigation," said Sacha Haworth, executive director of the Tech Oversight Project, a Washington-based advocacy group. "I don't want to rely on a billionaire with a grievance." If Mr. Musk wins, she pointed out, it would weaken or even destroy OpenAI, "opening up a large share of the market that an Elon Musk company can then gobble up." And if OpenAI gets the suit dismissed? "It would send a signal that it's OK to launch as a nonthreatening nonprofit working for the public's benefit and then cynically change to a for-profit without any accountability," she said. Ms. Haworth's conclusion: "There's no happy ending here." (The New York Times sued OpenAI and Microsoft in 2023 for copyright infringement of news content related to A.I. systems. The two companies have denied those claims.) Some critics are worried that, in the worst scenario for OpenAI, its charitable arm would shutter. That, they said, would wipe out a very large foundation that could have helped people. Mr. Musk says he will give any damages he receives to the foundation. Others take a more benign view. "The law doesn't rely on you being a good person to act in the public interest," said Shaoul Sussman, a former official with the Federal Trade Commission. "A lot of the dirty laundry of OpenAI is going to come out." In a different environment, Mr. Musk's pursuit of OpenAI might have been brief, ending with a tip to regulators. But he is not keen on government oversight, which during the Biden administration produced investigations and enforcement actions into his companies. Instead, Mr. Musk's case against OpenAI uses a legal doctrine called ultra vires, which means "beyond the powers." It holds that a corporation is restricted to activities defined in its charter. This approach was widely used in the early 19th century when the federal government was small and weak and only a competitor could rein in your company. Most corporations now have wide-ranging charters that allow them to pursue multiple goals. But there is one exception: nonprofits. "This is the first high-profile case that I know of being pursued under these statutes for 100 years," Mr. Sussman said. In a trial expected to last several weeks, the very old laws will meet the very new technology. As Shakespeare said, what's past is prologue.

Musk vs Altman: Silicon Valley's biggest trial opens -- here are the key witnesses

A high-stakes federal trial begins Monday with Elon Musk suing OpenAI's Sam Altman and Greg Brockman for over $130 billion, alleging betrayal of the company's nonprofit mission. Musk seeks their removal from leadership roles. OpenAI, valued at $850 billion, dismisses the suit as baseless. Key figures like Microsoft CEO Satya Nadella and OpenAI cofounder Ilya Sutskever are expected to testify. Jury selection will begin on Monday in the long-awaited federal trial pitting Elon Musk against Sam Altman in a case that could determine the future of the world's most valuable AI company. Musk, who cofounded OpenAI in 2015, has sought over $130 billion in damages and the removal of Altman and cofounder Greg Brockman, saying that they betrayed the company's nonprofit mission when it turned into a for-profit entity. OpenAI, valued at over $850 billion and eyeing a listing, has called the lawsuit "baseless" and driven by jealousy. Also Read: Elon Musk's trial against Sam Altman to reveal the ongoing power struggle for OpenAI Heavy hitters of Silicon Valley are expected to testify in the high-profile case. Here's a look at the list: Elon Musk (plaintiff), CEO, xAI, Tesla, SpaceX: Musk claims Altman and Brockman enriched themselves by abandoning OpenAI's original nonprofit charter. In his dramatic style, the almost-trillionaire has called this a "Shakespearean" betrayal in his complaint. Sam Altman (defendant), CEO, OpenAI: The primary defendant and biggest name on the other side, Altman is expected to present his version of things. He has been vocal on social media, posting on X a couple of months ago, "Really excited to get Elon under oath in a few months, Christmas in April!" Greg Brockman (defendant), president and cofounder, OpenAI: Brockman is named alongside Altman in the suit. Musk wants both men removed from their leadership roles. Satya Nadella, CEO, Microsoft: This is due to OpenAI's close partnership with Microsoft. The tech giant backed OpenAI's 2019 for-profit restructuring with a $1 billion investment. It gets five hours to present its case. Nadella is expected to testify about the company's deep financial and strategic ties to OpenAI. Ilya Sutskever, cofounder, OpenAI; founder, Safe Superintelligence: OpenAI's former chief scientist famously helped oust Altman in 2023 before the event reversed just days later. Now running his own AI safety startup, his testimony would offer a window into the company's internal tensions. Shivon Zilis, former OpenAI board member, Neuralink executive: Zilis is a former OpenAI board member and mother of four of Musk's children. Jared Birchall, Musk's wealth manager and fixer: The head of Musk's family office and a key figure in his inner circle, Birchall's testimony would bring to light Musk's financial motivations and behind-the-scenes dealings around OpenAI's founding years.

Sam Altman's Next High-Wire Act: Getting OpenAI to Make More Money

Earlier this year, a group of OpenAI employees convened in a private chat to discuss the latest thing Sam Altman, OpenAI's chief executive, had posted to social media. It was not the first time they had done so. The chat, which two people said they jokingly referred to as "Making Sam's Tweets Reality," nodded to their boss's proclivity for announcing OpenAI's plans on social media, where employees often found out about his ideas at the same time as the rest of the world. It was where they discussed how to build the surprise products he posted about. At Mr. Altman's behest, OpenAI spent years pursuing any and all artificial intelligence projects, buoyed by billions in investment and its reputation of having a multiyear technological head start. Now things have changed, with stiffening competition from rivals like Anthropic, Google and even Elon Musk's SpaceX. Mr. Altman has felt the heat -- and has decided to shift strategy. In the past few months, OpenAI has culled projects it sees as "side quests" -- a term describing nonessential tasks in a role-playing game -- including its video generator, Sora. It has instead doubled down on moneymaking endeavors like coding tools that can be sold to businesses. The goal, insiders said, is to be more disciplined in the face of intensifying competition as OpenAI prepares for a potentially blockbuster initial public offering as soon as this year. The moves test the leadership of Mr. Altman, 41, who has faced rising criticism over OpenAI's direction and his mutable management style. "The same company trying to push the frontier of A.I. is also being asked to show financial discipline," said Brad Gastwirth, the global head of research at Circular Technology, a market intelligence firm. "That's not an easy balance." OpenAI remains a leading A.I. lab that has raised more than $122 billion over the past year, is valued at $852 billion and has struck a series of deals with industry giants like Amazon and Nvidia. Its revenues have ballooned to an "annual run rate" of $24 billion, which is an estimate of long-term revenue based on short-term data, and more than 900 million people regularly use its ChatGPT app. But others have caught up. Google has placed A.I.-powered features at the forefront of its widely used products. SpaceX, which aims to build A.I. data centers that "orbit the Earth," said this week that it was working with Cursor, an A.I. start-up, to improve its A.I. models. Perhaps most threatening is Anthropic, the San Francisco A.I. company that has built a booming business selling coding tools to individuals and businesses. This month, Anthropic said its annual revenue run rate surpassed $30 billion, up from $9 billion at the end of 2025. Almost every week, it is releasing new A.I. products that have rocked longstanding software companies. An OpenAI spokesman declined to comment or make Mr. Altman available for an interview. The chief executive may be busy with other matters before a trial opens in federal court next week in Oakland, Calif., over a 2024 lawsuit that Mr. Musk filed against him. Mr. Musk has claimed that Mr. Altman violated OpenAI's founding contract by putting commercial interests with A.I. over the public good. OpenAI has denied the accusations. "We want to be a platform for every company, scientist, entrepreneur, and person," Mr. Altman said in a social media post on Thursday announcing OpenAI's latest A.I. model. "We want our users to have access to the best technology and for everyone to have equal opportunity." (The New York Times has sued OpenAI and its partner, Microsoft, accusing them of copyright infringement of news content related to A.I. systems. OpenAI and Microsoft have denied those claims.) When OpenAI released ChatGPT in 2022, the chatbot swiftly topped download charts and smashed growth records. The momentum gave Mr. Altman the leverage to attract billions of dollars in investment and to lure top A.I. talent. It also lulled him into a false sense of security, which allowed for distractions, six current and former OpenAI employees said. Friends and colleagues described Mr. Altman as someone who enjoys chasing "moonshot-like" products, even if they prove costly or impractical. OpenAI soon jumped into many eclectic projects. One team worked on building a "not safe for work" chatbot that could engage in racy conversations with users. Another team spun up a stand-alone social network, where people could generate A.I. videos and share them across the internet. Still another team was charged with developing ways for A.I. to accelerate scientific research. Then, over the past 18 months, OpenAI's head start evaporated as Google, Anthropic and others came on strong. "The landscape continues changing so quickly, and so unexpectedly, that sentiment for different companies can flip-flop practically overnight," said Rayan Krishnan, the chief executive of Vals AI, an A.I. start-up. Late last year, OpenAI's executives snapped into action. The company hired Fidji Simo, the chief executive of Instacart and a former Facebook vice president, to become its chief executive of A.G.I., for artificial general intelligence, deployment. In practice, Ms. Simo became the company's day-to-day operator and has helped Mr. Altman streamline strategy, three current and former employees said. "We really have to nail productivity," Ms. Simo said in internal messages to employees that were relayed to The Times. She emphasized how important it was to catch up in areas that competitors like Anthropic were dominating, characterizing the situation as a "code red." In recent months, Mr. Altman, Ms. Simo and Sarah Friar, OpenAI's chief financial officer, reviewed the company's projects to figure out what was and was not working, three people said. They settled on investing resources in Codex, OpenAI's enterprise coding product, with the idea that they can sell coding tools to businesses, while streamlining parts of ChatGPT to create what Ms. Simo characterized as a "super app" for desktop computers. They are also building advertising products inside ChatGPT. The Wall Street Journal previously reported on plans for the app. Not everyone is joining OpenAI's next phase. Three executives announced their departures last week after Mr. Altman wound down or reorganized parts of the company, including some science initiatives and Sora. Some top executives have expressed reservations as to whether OpenAI will be ready for an I.P.O. this year, two people familiar with the internal discussions said. Last month, OpenAI gave employees a week off so they could avoid burnout, two people familiar with the matter said. Other current and former employees characterized the time off differently: the calm before the storm.

Elon Musk's trial against Sam Altman to reveal the ongoing power struggle for OpenAI - The Economic Times

The bitter legal fight between Elon Musk and the leading artificial intelligence firm, OpenAI, led by Sam Altman, may come down to a few pages in one executive's personal diary. "This is the only chance we have to get out from Elon," wrote Greg Brockman, OpenAI's president and a co-founder, in the fall of 2017. "Is he the 'glorious leader' that I would pick?" Brockman's diary entry is part of the thousands of pages of internal documents revealed in court since Musk, one of the original co-founders of OpenAI, sued the company, its chief executive Altman and Brockman in 2024. Musk is seeking $150 billion in damages from OpenAI and Microsoft, one of its largest investors, according to a person involved in the case, with proceeds going to OpenAI's charitable arm. Jury selection for the trial is planned for Monday in the Oakland, California, federal court, with opening arguments expected on Tuesday. The documents offer a rare window into ⁠egos and personalities ⁠that have shaped OpenAI as it evolved from a nonprofit research lab in Brockman's apartment to a tech giant worth more than $850 billion. They also shed light on how the CEOs with the most power to shape generative AI think about the technology. The trial risks complicating OpenAI's plans for a potential initial public offering by casting doubt on its leadership. A drumbeat of unflattering disclosures could also intensify Americans' growing pessimism about AI technology more broadly. The case centers on Musk's claim that OpenAI, Altman and Microsoft betrayed OpenAI's original mission as a nonprofit to benefit humanity by forming a for-profit entity in March 2019, 13 months after Musk left the OpenAI board. Musk said the defendants kept him in the dark about their plans, exploited his name and financial support to create a "wealth machine" for themselves, and owe damages for having conned him and the public. He also wants OpenAI to revert to a nonprofit, for Altman and Brockman to be removed as officers, and for Altman to be removed from its board, among other measures. OpenAI's ⁠lawyers counter that Musk is motivated by a compulsion to control OpenAI and prop up his own AI lab xAI, which he founded in 2023 shortly after OpenAI launched ChatGPT and sparked the AI boom. The company says Musk was involved in discussions to create OpenAI's new structure and demanded to be CEO. Microsoft, also a defendant, denies that it colluded with ⁠OpenAI and says it teamed up with OpenAI only after Musk left. Heavy hitters expected to testify Heavy hitters in Silicon Valley including Musk, Altman and Microsoft CEO Satya Nadella are expected to testify in person. Shivon Zilis, a former OpenAI board member who is also mother to four of Musk's children, is likely to be a key witness, with OpenAI lawyers arguing that she funneled information about OpenAI to Musk. The trial comes at a sensitive time for both sides. OpenAI faces unprecedented competition from rivals including Anthropic, and is spending billions on computational resources. It is also preparing for a potential blockbuster IPO that could value the company at $1 trillion, Reuters has reported. Musk's companies face similar pressures. His xAI, now folded into his rocket company SpaceX, trails far behind OpenAI in usage. SpaceX also plans to go public this year in what could be the biggest IPO ever. According to court papers, Musk gave about $38 million of seed money to OpenAI between 2016 and 2020, mostly before he left the board. In 2019, OpenAI restructured as a for-profit unit governed by the nonprofit. That let it accept money from outside investors while being accountable for the nonprofit's original mission. Last fall, OpenAI overhauled its structure again to become a public benefit corporation, in which the nonprofit and other investors including Microsoft hold stakes. The nonprofit holds a 26% stake as well as additional warrants if OpenAI hits certain valuation targets. Musk's lawyers calculated damages by multiplying OpenAI's valuation and a portion of the nonprofit's stake that could be ⁠attributed to Musk's contributions. His team says between 50% and 75% of the nonprofit's stake can be attributed to Musk. A 'Manhattan Project for AI' Musk and Altman co-founded OpenAI with a goal of developing AI to benefit humanity and fend off rivals such as Google. Altman approached Musk about the idea in May 2015, branding it the "Manhattan Project for AI," court documents show. Musk's involvement helped OpenAI land top researchers like now-former chief scientist Ilya Sutskever. By mid-2017, Musk began questioning OpenAI's viability, at one point holding back promised funds after clashing with Altman, Brockman and Sutskever, according to court filings. One source of tension was that Musk wanted to be CEO, emails show, which made other co-founders uneasy. Around the same time, Brockman appeared frustrated by Musk's stance, and wondered if turning OpenAI into a profit-making venture could also make him rich. "Financially, what will take me to $1B?" he wrote in his diary. "Accepting Elon's terms nukes two things: our ability to choose (though maybe we could overrule him) and the economics." Musk's lawyers highlighted the entry to show that OpenAI's leaders were more motivated by profit than the mission. By January 2018, Musk appeared to have given up. "OpenAI is on a path of certain failure relative to Google," Musk emailed. In late 2022, OpenAI launched ChatGPT.

Elon Musk and Sam Altman's Epic Fight Heads to Court

Cade Metz has covered artificial intelligence for more than 15 years. On May 25, 2015, Sam Altman sent an email to Elon Musk proposing a "Manhattan Project for A.I." He envisioned a Silicon Valley research lab that would build enormously powerful artificial intelligence and share it with the rest of the world "via some sort of nonprofit." Mr. Musk replied that evening, saying the idea was "probably worth a conversation." Before the end of the year, the two tech entrepreneurs founded a nonprofit they called OpenAI, which would go on to launch the global A.I. boom with the release of ChatGPT. But by the time OpenAI's chatbot was created, Mr. Musk had left the organization after a power struggle with Mr. Altman and others at the lab. He sued OpenAI in 2024, claiming that Mr. Altman took advantage of his financial resources and breached the lab's founding agreement by putting commercial interests over the public good. On Monday, jury selection is expected to begin in the federal courthouse in Oakland, Calif., for a trial to decide if Mr. Musk really was Sam Altman's deep-pocketed dupe. The case will highlight the many personal squabbles and esoteric arguments that have driven A.I. development. Mr. Musk, Mr. Altman, and several other key industry figures, including Microsoft's chief executive, Satya Nadella, and Mira Murati, OpenAI's former chief technology officer, are slated to testify in the trial, which is expected to last several weeks. Mr. Musk is asking for more than $150 billion in damages from OpenAI and Microsoft, OpenAI's primary partner. He is also asking the court to remove Mr. Altman from OpenAI's board and unravel a shift the company recently made to operate as a for-profit company. The trial's outcome could upend the tech industry's A.I. race. OpenAI, which has emerged as one of the most important tech companies in the world, could be crippled just as it appears to be heading toward one of the biggest initial public offerings in history. A win for Mr. Musk would also be a win for OpenAI's competitors, from industry giants like Google to young companies like Anthropic, as well as international competitors such as China's DeepSeek.

Elon Musk vs Sam Altman heads to court in blockbuster AI showdown with billions at stake

A major legal battle begins this week in California. Elon Musk is suing Sam Altman and OpenAI. The case centers on OpenAI's shift from a nonprofit to a for-profit entity. Musk claims this was a betrayal of their original agreement. Prominent tech figures may testify. The trial could significantly impact OpenAI and ChatGPT's future. Jury selection starts Monday. A California federal courtroom is set to host an extraordinary legal clash this week -- one that, as NBC News put it, "not even artificial intelligence could make it up." Jury selection begins Monday in a civil trial pitting Elon Musk against Sam Altman, in a case that blends a high-stakes business dispute with a deeply personal feud. The proceedings, expected to run for about four weeks, could shape the future of OpenAI and its flagship product, ChatGPT. A roster of prominent tech figures may be called to testify, including Satya Nadella, alongside current and former OpenAI board members. Also Read: Stage set for Elon Musk's court battle with OpenAI Presiding over the case, Judge Yvonne Gonzalez Rogers has already described the dispute as "billionaires versus billionaires," underscoring the scale -- and spectacle -- of the confrontation. At the heart of the litigation is OpenAI's transformation from a nonprofit research lab founded in 2015 into a multibillion-dollar enterprise. While the organisation now operates with a for-profit arm overseen by a nonprofit foundation, Musk argues this shift represents a "betrayal." He claims Altman secured his backing under the "pretense of creating a public-spirited enterprise," only to allow others to "cash in." Altman's legal team has pushed back forcefully, accusing Musk of "rewriting history." They contend Musk exited OpenAI "in a huff in 2018" and failed to deliver on a pledged $1 billion contribution. The defence is also expected to argue that Musk himself once supported a for-profit transition -- provided it was integrated into Tesla. The courtroom drama comes against a backdrop of increasingly public animosity. Musk has mocked his rival as "Scam Altman," while Altman has taken jabs of his own, including calling for the return of a $45,000 deposit for a "long-delayed" Tesla sports car. Both appear to relish the impending face-off: Musk has said the evidence will "blow your mind," while Altman quipped it would feel like "Christmas in April!" to see Musk testify under oath. Also Read: US judge dismisses Elon Musk's fraud claims in OpenAI case at his request, plans to proceed to trial Despite their shared prominence in Silicon Valley, the two figures present stark contrasts. Musk, significantly older, commands an estimated net worth of around $645 billion and has relocated to Texas, while Altman remains closely tied to San Francisco and its tech ecosystem. The stakes are enormous. Musk is seeking a permanent injunction to enforce OpenAI's original charter, as well as the removal of Altman and co-founder Greg Brockman. He had initially pegged damages at $134 billion, later suggesting any recovery be directed to OpenAI's charitable arm. OpenAI has dismissed the claims as a "legal ambush" launched on the eve of trial. Judge Rogers has signalled a strict approach to proceedings, warning against "gamesmanship" and insisting the court will not "waste precious judicial resources." In a symbolic move to reinforce parity, she has directed all parties -- regardless of status -- to enter through the courthouse's "regular front door" for standard security checks, stating that prominence does not entitle anyone to "special privileges." A nine-member advisory jury will hear the case and deliver a verdict, though the final decision on liability and remedies will rest with the judge.

Stage set for Elon Musk's court battle with OpenAI - The Economic Times

As the courtroom doors swing open on Monday, tech titan Elon Musk steps into a fierce clash against AI powerhouse OpenAI. Musk argues that the organization has strayed from its foundational mission of serving the greater good. With OpenAI's ChatGPT challenging Musk's own AI initiative, Grok, the stakes couldn't be higher.Elon Musk's lawsuit accusing high-profile artificial intelligence company OpenAI of betraying its non-profit mission heads for trial on Monday with the selection of jurors. The legal clash in a courtroom across the bay from San Francisco pits the world's richest person against a startup Musk once backed and now competes with in the booming AI sector. OpenAI's ChatGPT is a formidable rival to the chatbot Grok, made by Musk's xAI lab. While Musk's lawsuit is part of a feud between him and OpenAI Chief Executive Sam Altman, it spotlights a debate as to whether AI should ultimately serve to benefit a privileged few or society as a whole. Court filings lay out how Altman convinced Musk to back OpenAI in 2015, acting as a co-founder for a non-profit lab whose technology "would belong to the world." Musk pumped millions of dollars into the lab, which he subsequently left. However, OpenAI established a commercial subsidiary as it needed hundreds of billions of dollars for data centers to power its technology. Microsoft has poured billions of dollars into OpenAI and its CEO Satya Nadella is among those slated to testify at the trial. Musk argues in his lawsuit that he was deceived about OpenAI's mission being altruistic. San Francisco-based OpenAI has countered in court filings that its break-up with Musk was due to his quest for absolute control rather than its nonprofit status. "This case has always been about Elon generating more power and more money for what he wants," OpenAI said in a recent X post. "His lawsuit remains nothing more than a harassment campaign that's driven by ego, jealousy and a desire to slow down a competitor." The startup noted that days after Musk entered the AI race in 2023 he called for a six-month moratorium on development of advanced AI. The judge presiding over the trial will decide by mid-May -- guided by an advisory jury's findings -- whether OpenAI broke a promise to Musk in a drive to lead in AI or just smartly rode the technology to glory. Along with calling for OpenAI to be forced to revert to a pure nonprofit, Musk's suit urges the ouster of Altman and co-founder Greg Brockman, who is startup president. Musk, who had sought as much as $134 billion in damages, has since renounced any personal benefit, pledging to redirect any award to the OpenAI nonprofit. Judge Yvonne Gonzalez Rogers has reserved the right to determine any remedies herself, without the jury's input. OpenAI now has a hybrid governance structure giving its nonprofit foundation control over a for-profit arm. Musk, who gutted the trust and safety team at Twitter after buying the social media platform that he renamed X, faces the challenge of convincing a jury and a judge that the company behind ChatGPT was built on a lie.

AI united Sam Altman and Elon Musk, then drove them apart - The Economic Times

Elon Musk and Sam Altman, co-founders of OpenAI, are set to face off in court over a clash of visions regarding artificial intelligence. Their initial collaboration, driven by a shared concern for AI's future, has fractured due to differing approaches to its development and commercialization.Elon Musk and Sam Altman bonded over artificial intelligence in a project that became OpenAI, but a clash of visions will see the polarising figures face off in court in a trial that opens next week. Silicon Valley lore traces their first meeting back to 2012, in an encounter prompted by investor Geoff Ralston. Nearly 14 years younger than Musk, who was born in June of 1971, Altman was said to be impressed by the Tesla chief's powers of persuasion. While yet to reach the age of 30, Altman already had a tech world reputation as a brilliant dealmaker. Altman's unassuming, friendly demeanour contrasted sharply with Musk's abrasive style, but they shared an entrepreneurial spirit and a penchant for risk-taking. Libertarian Musk and the apolitical Altman found common ground in a shared belief about the future of AI. Musk saw Google, and its subsidiary DeepMind, as out to create AI that thinks sharper than people do with little regard for controlling it. Just months before OpenAI was officially founded in early 2015, Altman published a blog post calling for measures to "limit the threat" posed by AI, complete with concrete proposals. This philosophy was set as the guiding principle at OpenAI: born a non-profit organisation dedicated to the responsible advancement of AI and boasting a commitment to making its research and source code freely accessible to the public. Altman successfully pitched the OpenAI concept to Musk, who went on to invest at least $38 million to get the nascent entity established. Altruistic AI? In February of 2018, the South Africa-born entrepreneur behind Tesla, SpaceX and other companies resigned from OpenAI's board to ostensibly focus on his other commercial endeavors. Behind the scenes, however, Musk and Altman were clashing over a proposed shift of OpenAI to a for-profit business that could attract investors in the capital-intensive AI race. OpenAI completed that transformation in 2025, some three years after its ChatGPT digital assistant made AI and those who build it all the rage in the tech world. After years as a champion of an approach in which AI serves society rather than corporate coffers, Musk muddied his message by launching a private xAI startup in July of 2023. The mission statements for xAI and its chatbot Grok give scant mention to dangers of the technology even though Musk once called it an "existential threat" to humanity. The rift between Altman and Musk widened as the world's richest man moved to Texas and became an ally of US President Donald Trump while OpenAI stayed in San Francisco and focused on improving its technology. Musk has used his social media platform X to go on the offensive with posts that include likening Altman to a "Game of Thrones" character seen as a master manipulator. Musk, 54, even filed a lawsuit seeking to oust 41-year-old Altman as OpenAI chief executive. Selection of jurors in a trial for that case is set for Monday. Altman has fired back on social media, contending Musk's agenda is to rule over the most powerful AI. "The current struggle between the two billionaires is shaped by their egos and belief that the winner will control a new technology," contended Darryl Cunningham, author of a book about Musk. "It seems doubtful to me that either can control AI."

OpenAI vs Musk: Courtroom drama intensifies as Musk faces gruelling cross-examination

Past emails and funding decisions brought Musk's role and intentions at OpenAI under scrutiny OpenAI trial that has been in the headlines has now taken a tense turn as Elon Musk faced an intense round of cross questions made on his claim. He presented himself as a calm and principled figure at the start but during the cross questioning, he reportedly avoided giving direct yes or no answers and repeatedly challenged the framing of the questions. Many times, even the judge Yvonne Gonzalez Rogers had to step in to urge him to respond more clearly. The previous claims that he rarely loses his temper and does not raise his voice were also seemed to be false. As per the reports, he grew visibly frustrated at times arguing with OpenAI's lead lawyer William Savitt and accusing him of asking misleading questions. On the other hand, observers in the courtroom noted these moments of tensions where Musk appeared defensive and occasionally inconsistent with statements he had made earlier in the day. The questions were also raised about Musk's past involvement with OpenAI which included his financial commitments and leadership ambitions. The lawyers claimed that Musk wanted a greater control with the organisation but became disengaged when those efforts did not materialise. His decision to halt funding and later recruit key talent away from OpenAI was also brought into focus. Also read: Will Pluto be a planet again? Here is what NASA chief has to say about it Emails and prior statements presented during session talked about Musk's earlier doubts about OpenAI's non-profit structure and its ability to compete in the rapidly evolving AI space. At the start, Musk initially downplayed these concerns, he eventually acknowledged some of the remarks when pressed. Throughout the exchange, Musk maintained his core argument that OpenAI had strayed from its original mission of serving the public good. However, his reluctance to provide direct answers, as well as his shifting responses, may have influenced how the message was received. The cross-examination has added a new layer of uncertainty to the case, as the jury now considers not only the claims made, but also the credibility and consistency of one of its key figures.

OpenAI vs Elon Musk trial begins: What happened so far, explained in 7 key points

The trial could impact OpenAI's future, Microsoft's role, and the broader direction of AI development The much-talked-about legal war between Elon Musk and Sam Altman started after Twitter feuds. The trial started with Musk taking the witness stand on the very first day of the trial. For the unversed, the case cuts to the heart of one of Silicon Valley's most consequential questions: did OpenAI betray the public trust when it abandoned its nonprofit roots to chase billions in investment? Here is everything that is happening. Musk has sued OpenAI and its CEO, Sam Altman, along with President Greg Brockman, stating that the organisation he helped found and fund was built on a promise that it would develop AI for the benefit of humanity and not the shareholders. He stated that the promise was broken when OpenAI created a for-profit subsidiary and accepted billions from Microsoft. Musk asked the court to award around $134-150 billion in damages, with any proceeds going to OpenAI's charitable arm rather than to himself. Musk wants Altman to be removed as the CEO and the organization to be restructured as a non-profit. Musk was the first witness called and spent much of the day walking the jury through his version of how OpenAI came to exist. He said OpenAI was his idea and he chose the name and brought the key researchers and provided the initial money, all with the intention of helping humanity. He also stated that he could have launched a for-profit AI company from the beginning, but deliberately chose not to. He also stated that AI could either make humanity more prosperous or kill everyone, comparing the ideal future to Star Trek and the nightmare scenario to Terminator. OpenAI's lead attorney, William Savitt, told the jury a very different story. He stated that Musk was never a pure-hearted philanthropist; he wanted control. Savitt argued that Musk had at various points pushed for OpenAI to become a for-profit entity, so long as he was at the helm, and even explored folding it into Tesla. He told the jury that Musk never fulfilled his full financial commitments to OpenAI and is why OpenAI had to find funding somewhere else. He mentioned that the lawsuit only materialised after Musk failed to get what he wanted and subsequently launched his own competing AI venture, xAI, in 2023. "We are here because Mr. Musk didn't get his way," Savitt told jurors. Before opening arguments started, OpenAI lawyers raised concerns about posts Musk had made on X the previous day, in which he referred to Altman as "Scam Altman" and accused him of stealing a charity. Judge Yvonne Gonzalez Rogers stopped short of issuing a formal gag order but made her feelings clear, asking Musk to rein in his habit of using social media to fight legal battles outside the courtroom. Musk said he had only responded after OpenAI itself posted publicly about the case. Both sides agreed to scale back their online activity for the duration of the trial. Microsoft, which has invested more than $13 billion in OpenAI since 2019, is also a defendant in this case. Musk's legal team argues the tech giant enabled OpenAI's alleged betrayal of its charitable mission through its financial backing. Microsoft's lawyer Russell Cohen pushed back, arguing his client had done nothing wrong and had been a responsible partner throughout. For OpenAI, this proceeding can risk the image of the company, specifically ahead of a potential IPO that could value the company at close to $1 trillion. And if the company loses the lawsuit, the structural changes may impact the company's growth. If Musk loses the lawsuit, a loss would undermine a central piece of his public identity as a defender of safe and open AI development, even as his own AI venture xAI faces regulatory scrutiny in multiple countries over harmful content. Musk is now set to return in the case with Jared Birchall, the man who manages Musk's personal finances and holds executive roles at both xAI and Neuralink, as the next witness. Altman and Microsoft CEO Satya Nadella are both expected to testify at some point during the trial. The jury may be asked to work through years of internal emails, texts, and corporate documents to decide if OpenAI broke a promise to the public or it is yet another publicity stunt by Elon Musk.

OpenAI accuses Elon Musk of harassment, smear campaign over lawsuit

'Scam Altman didn't tell the OpenAI board that he OWNED the OpenAI Startup Fund,' Musk posted on X. The rivalry between Elon Musk and Sam Altman is heating up. The two are facing off in a trial that began on Monday and is linked to Musk's 2024 lawsuit against OpenAI. The lawsuit claims that OpenAI has moved away from its original mission of building AI for humanity and is now more focused on profits. At the same time, Musk has been commenting on the issue on X (formerly Twitter), targeting Altman and OpenAI with a series of strong allegations. In response, OpenAI has published a blog post countering Musk's claims, accusing him of harassment and running a smear campaign. Also read: Sam Altman says AGI will lead to economy collapse, here is why Musk has been taking aim at Altman with serious accusations. In one post, he wrote, 'Scam Altman didn't tell the OpenAI board that he OWNED the OpenAI Startup Fund.' 'Altman lied in congressional testimony that he didn't have financial gain from OpenAI.' In another post, he said, 'Scam Altman owned the OpenAI Startup fund while simultaneously lying to the world that he didn't financially benefit from OpenAI.' He didn't stop there. Musk also claimed, 'Scam Altman and Greg Stockman stole a charity. Full stop.' He followed it up by saying, 'Greg got tens of billions of stock for himself and Scam got dozens of OpenAI side deals with a piece of the action for himself, Y Combinator style. After this lawsuit, Scam will also be awarded tens of billions in stock directly.' Also read: Claude Code product chief says constant AI launches are causing FOMO among users OpenAI has strongly pushed back against Musk's claims. In its blogpost, the AI company said that Musk's actions are driven by personal motives. It wrote, 'Motivated by jealousy, regret for walking away from OpenAI and a desire to derail a competing AI company, Elon has spent years harassing OpenAI through baseless lawsuits and public attacks.' According to OpenAI's post, there is also evidence suggesting he coordinated with Meta CEO Mark Zuckerberg in attempts to undermine OpenAI. OpenAI further clarified that both sides had once agreed that a for-profit structure was necessary to raise the massive funding needed for AI development. It also claimed that Musk demanded full control of the company and even proposed merging it with Tesla, which OpenAI rejected. 'When we wouldn't agree to his terms, he walked away and told us we had a 0% chance⁠ of success. He turned out to be wrong though, and a resentful Elon has attacked OpenAI ever since,' OpenAI said.