What Musk’s lawsuit against Altman could change about the AI industry
A lawsuit filed by billionaire Elon Musk against OpenAI CEO Sam Altman is scheduled to go to trial this week, beginning with jury selection on Monday in federal court in Oakland, California. The dispute could last about four weeks and hinges on whether OpenAI’s leadership prioritized profit over the institution’s original mission to ensure AI benefits humanity.
Musk and Altman previously co-founded OpenAI in 2015 as a nonprofit; they split in 2018 after Musk left amid disagreement over OpenAI’s nonprofit status. OpenAI later created a for-profit subsidiary in 2019, and Musk’s complaint alleges Altman favored financial goals. Musk also claims he wanted OpenAI to merge with tesla,an idea he says Altman rejected,leading Musk to pursue xAI instead.
The trial is tied to the broader competition between OpenAI and Musk’s efforts in AI and computing infrastructure.Musk is seeking around $150 billion in damages from OpenAI and Microsoft, and he asks the court to remove Altman from OpenAI’s board and roll back its for-profit structure.OpenAI denies wrongdoing, saying Musk supported the shift to a for-profit model.
A nine-person jury will be seated,but the verdict will be advisory; the final decision will be made by U.S. District judge Yvonne Gonzalez Rogers. Witnesses expected to testify include Musk and Altman, plus Microsoft CEO Satya Nadella and former OpenAI CTO Mira Murati. The court may also hear from former and current openai board members, including those involved in Altman’s brief 2023 ouster and later reinstatement.
Separately, OpenAI is also facing an expanding Florida criminal inquiry related to the alleged use of ChatGPT during an April 2025 shooting at Florida State University, and authorities have broadened the matter to include additional killings involving missing students at the University of South Florida. Musk has publicly criticized OpenAI in connection with that reporting.
A highly anticipated lawsuit filed by billionaire Elon Musk against OpenAI CEO Sam Altman is set to go to trial this week, starting with jury selection on Monday, as the artificial intelligence firm’s future hangs in the balance.
Regardless of who wins the four-week trial, the outcome could very well upend the technology industry’s AI race. Both OpenAI and Musk’s startup, xAI, are actively pursuing ways to outcompete the other in a contest fueled by personal drama.
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In 2015, Musk and Altman cofounded OpenAI as a nonprofit organization dedicated to researching and advancing AI technology. The two officially split in February 2018 when Musk quit over disagreements regarding the firm’s nonprofit status. OpenAI launched a for-profit subsidiary in 2019, which Musk said he never wanted.
In his lawsuit, the tech mogul accuses Altman of prioritizing money over the organization’s humanitarian mission of ensuring AI technology benefits the world. OpenAI disputes the claim, saying Musk was on board with its for-profit move.
Musk allegedly wanted to merge OpenAI with Tesla, and when that idea was rejected by Altman, he decided to part ways and start his own AI initiative.
As of March 31, OpenAI is valued at $852 billion after raising $122 billion. Anthropic overtook its competitor this week, surging to an approximate $1 trillion valuation. In February, xAI and SpaceX merged in a deal valued at $1.25 trillion.
Musk’s combined company is seeking to go public this summer, filing an initial public offering worth $1.75 trillion that could make its founder the world’s first trillionaire. OpenAI is similarly seeking to go public as soon as this year, but that goal could be postponed depending on the trial’s outcome.
If the court rules in favor of Musk, OpenAI’s rivals would be emboldened to take the lead in the AI race. But if Musk loses the case, Altman would maintain his leadership position at the company and continue pursuing the rapid development of AI-fueled data centers.
Musk is seeking about $150 billion in damages from OpenAI as well as Microsoft, which partners with Altman’s company. The plaintiff also demands the court remove Altman from OpenAI’s board and roll back its for-profit status. Notably, Altman was briefly ousted in 2023 but reinstated after OpenAI staffers threatened to join him.
Jury selection is set to start on Monday in federal court in Oakland, California. A nine-person jury will deliver a verdict, but unlike other trials, the jurors merely serve an advisory role here. The final decision will be determined by U.S. District Judge Yvonne Gonzalez Rogers, nominated in 2011 by then-President Barack Obama.
Musk and Altman will participate in witness testimony, and Microsoft CEO Satya Nadella and former OpenAI chief technology officer Mira Murati are also slated to take the stand.
The judge and jury may hear from former OpenAI board member Shivon Zilis, who is the mother of four of Musk’s children, and three other OpenAI board members who fired Altman in November 2023, only for him to return to the board days later.
OpenAI is facing a criminal investigation in Florida over an April 2025 shooting at Florida State University, where the suspect asked OpenAI’s ChatGPT about how to carry out the crime. The state investigation was expanded on Monday to include the recent murders of two missing doctoral students at the University of South Florida. In this case, the suspect also used ChatGPT.
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On Monday, Musk indirectly criticized OpenAI over the suspects’ alleged use of ChatGPT on Monday by reposting a conservative podcaster’s response to the latest news from Florida.
“This is the 7th consecutive week with new reporting that ChatGPT was used in connection with murder or suicide,” Katie Miller posted on X. “OpenAI doesn’t ‘benefit all of humanity,’” she said, quoting part of OpenAI’s mission statement that Musk often questions.
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