Elon Musk is set to face OpenAI in a high-profile courtroom showdown, as jury selection begins Monday in a case centred on allegations that the company abandoned its original non-profit mission.
The legal clash, unfolding near San Francisco, pits the world’s richest man against a company he once supported but now competes with in the rapidly expanding artificial intelligence sector. OpenAI’s ChatGPT is a direct rival to the Grok chatbot developed by Musk’s xAI venture.
At the heart of the dispute is whether OpenAI deviated from its founding goal of developing AI for the benefit of humanity, a vision Musk claims he supported when he contributed approximately $38 million to the organisation in its early days.
Court filings indicate that Sam Altman had assured Musk in 2017 that he remained “enthusiastic about the non-profit structure” of the venture. However, OpenAI later established a commercial arm as it sought significant investment to scale its operations.
Now valued at $852 billion, with backing from Microsoft, OpenAI is preparing for a potential public listing, a move that has intensified scrutiny over its governance and structure.
The presiding judge, Yvonne Gonzalez Rogers, is aiming for the jury to determine by late May whether OpenAI breached any commitments to Musk or legitimately transitioned into a commercial powerhouse.
Musk’s lawsuit seeks sweeping remedies, including forcing OpenAI to revert to a fully non-profit model, removing Altman and co-founder Greg Brockman, and awarding damages of up to $134 billion. He has also called for the company to sever ties with Microsoft.
However, during pre-trial proceedings, Judge Rogers questioned the basis for the damages, suggesting Musk’s legal team may be “pulling numbers out of the air.”
OpenAI has strongly rejected the claims, arguing that the dispute stems from Musk’s desire for greater control rather than concerns about the organisation’s mission.
“This case has always been about Elon generating more power and more money for what he wants,” the company said in a statement on X. “His lawsuit remains nothing more than a harassment campaign that’s driven by ego, jealousy and a desire to slow down a competitor.”
The case also highlights broader tensions within the AI industry, including debates over governance, ethics and control of powerful technologies. Internal communications disclosed during the case point to past leadership conflicts, including the temporary removal of Altman in 2023.
Satya Nadella is among key figures expected to testify as proceedings unfold.
If the jury rules in Musk’s favour, the court will determine appropriate remedies or compensation. Musk has said any damages awarded would be directed to OpenAI’s non-profit foundation.
