A major trial involving Elon Musk and OpenAI CEO Sam Altman has begun in a US federal court in California. The case is significant as it could influence the future structure of OpenAI and broader artificial intelligence governance. Musk is seeking $150 billion in damages, alleging the company abandoned its original nonprofit mission.
The lawsuit claims OpenAI shifted from a public-benefit organisation to a profit-driven entity benefiting investors. Musk argues that this transformation betrayed the company’s founding principles aimed at developing AI for humanity’s benefit. The case also targets Microsoft, a major OpenAI investor, alongside its leadership.
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Moreover, Musk alleges that he was misled about OpenAI’s long-term structure after providing early funding. He claims the company’s shift occurred after he left its board in 2018. OpenAI, however, argues that Musk was aware of and supported structural changes before leaving. The company also says the lawsuit is motivated by competitive interests.
Additionally, OpenAI maintains that Musk’s legal action followed failed attempts to gain greater control of the organisation. The company has also pointed to Musk’s creation of rival AI firm xAI as a competing interest. The trial is expected to feature testimony from Musk, Altman, and Microsoft CEO Satya Nadella.
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Finally, the case could impact OpenAI’s future plans, including a potential public listing. The company is currently valued at over $850 billion and faces increasing competition in the AI sector. The trial is set to continue over the coming weeks, with liability deliberations expected in mid-May.