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Elon Musk and OpenAI CEO Sam Altman, once allies in building one of the world's most influential artificial intelligence companies, face each other in a federal courtroom in Oakland, California, as a lawsuit that has divided the AI industry proceeds to trial.
A nine-person jury is being chosen to hear Musk’s claims of breach of contract and unjust enrichment against Altman, OpenAI, its president Greg Brockman, and Microsoft.
The trial is expected to last two to three weeks and will be overseen by Judge Yvonne Gonzalez Rogers. Musk, Altman, and Microsoft CEO Satya Nadella are among the key figures scheduled to testify.
Musk, Altman, and several other tech leaders started OpenAI in 2015 as a nonprofit, aiming to develop AI that benefits everyone. Musk provided about $38 million in funding before leaving the board in 2018 due to disagreements over control.
After Musk left, OpenAI launched ChatGPT, raised billions from Microsoft, and became one of the most valuable private companies in the world. In 2025, it got approval to restructure as a for-profit company, though it still operates under the nonprofit’s oversight.
Musk’s lawsuit claims that Altman misled him about OpenAI’s nonprofit mission and that turning the company into a for-profit venture violated their charitable agreement. Musk wants over $134 billion in damages, which he says would go to OpenAI’s nonprofit arm.
He is also asking that Altman and Brockman be removed and that the company undo its for-profit changes.
OpenAI denies all of Musk’s claims, saying that in 2017, Musk agreed it was necessary to set up a for-profit company. OpenAI also says Musk’s money was a tax-deductible donation, not an investment that gave him ownership.
In a post on X, OpenAI called the lawsuit "a harassment campaign that's driven by ego, jealousy, and a desire to slow down a competitor."
The outcome of the trial could shape OpenAI’s future. The company plans to go public later this year, aiming for a valuation of $1 trillion. If the court orders OpenAI to undo its for-profit changes, those plans could be seriously affected.
Court filings have already revealed numerous internal emails, depositions, and personal messages between Musk and Altman. Both sides seem ready for a heated trial. The judge will decide on any final remedies, separate from the jury’s findings, with a decision.
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