Elon Musk's Lawsuit Against Sam Altman and OpenAI Heads to Trial in Oakland Federal Court

Jury selection is set to begin Monday in a federal courtroom in Oakland, California, for a civil trial pitting Elon Musk against Sam Altman and OpenAI. Musk, CEO of Tesla and SpaceX, alleges that Altman and others at OpenAI betrayed the organization's original nonprofit mission by converting it to a for-profit entity.

The trial is expected to last four weeks and may feature testimony from prominent figures including Microsoft CEO Satya Nadella and current and former OpenAI board members. OpenAI was founded in 2015 as a nonprofit research center with Musk and Altman as co-chairs.

Musk claims he contributed $38 million, representing 60% of the initial funding, under the understanding that it would remain nonprofit. He left OpenAI in 2018 and later founded rival AI startup xAI.

Musk's lawsuit, filed in 2024, seeks restitution initially estimated at $134 billion from OpenAI and Microsoft, a major investor and co-defendant. In a recent filing, Musk revised his demands to direct any disgorged funds to OpenAI's charitable arm and requested the removal of Altman and co-founder Greg Brockman, along with an injunction to restore the original charter.

OpenAI completed its restructuring to a for-profit model in October, still reporting to a nonprofit foundation. Altman's side argues that Musk agreed to the for-profit shift to raise capital but wanted to integrate OpenAI into Tesla. They state Musk never fulfilled a $1 billion pledge and left abruptly.

Both parties have expressed anticipation for the trial through posts on X, with Musk saying the testimony would "blow your mind" and Altman looking forward to Musk's oath testimony.

“Can’t wait to start the trial. The discovery and testimony will blow your mind.”

Judicial Context and Proceedings U.S.

Jurors will be drawn from San Francisco and surrounding counties, an area with many tech workers. The judge has enforced standard procedures, requiring all parties to enter through the front door and undergo security screenings. She previously warned against over-litigation and has experience with tech cases, including a ruling against Apple in an antitrust matter last year.

In a separate matter, Sam Altman issued a letter apologizing to the community of Tumbler Ridge, British Columbia, after OpenAI failed to alert law enforcement about a suspect's online behavior prior to a shooting that killed eight people. OpenAI identified the account through abuse-detection efforts but determined it did not meet the threshold for referral.

Altman expressed deepest condolences in the letter posted Friday. Altman is also involved in Tools for Humanity, a startup he co-founded in 2019, which expanded its World ID verification service last week. The service uses devices called Orbs to scan irises and confirm human identity, aiming to combat bots and deepfakes.

Tools for Humanity's chief product officer Tiago Sada explained that biometric data is encrypted and transferred to the user's phone, with the Orb deleting its copy.

“I am deeply sorry that his company failed to alert law enforcement about the suspect in a recent mass shooting.”

The trial occurs amid OpenAI's competition with rivals like Anthropic and Google in the AI market. A ruling in Musk's favor could disrupt OpenAI's operations, including its partnerships and leadership. Documents unsealed in the case include a 2016 email from Musk suggesting OpenAI partner with Microsoft over Amazon and personal notes from Greg Brockman.

Altman's efforts to monetize OpenAI have drawn scrutiny, with reports of culling projects for strategic discipline. Prediction market Polymarket gave Musk 32% odds of success as of Friday.

Altman share backgrounds as Bay Area tech billionaires with interests in AI, but differ in age, politics, and location—Musk, 54, supports far-right Republican causes and lives in Texas, while Altman, 41, donated $1 million to President Donald Trump's inauguration and boosts San Francisco.

Their feud has included public jabs, such as Musk calling Altman "Scam Altman" on X and Altman demanding a Tesla Roadster deposit refund. The case highlights tensions in AI development, from nonprofit origins to commercial pressures, with potential witnesses including top AI researchers.

Public anger over AI persists, as seen in a recent attack on Altman's home.