Jury Selection Underway in Elon Musk's Lawsuit Against OpenAI in Oakland Court
Jury selection started in a federal courtroom in Oakland, California, for Elon Musk's civil lawsuit against OpenAI CEO Sam Altman and the company. Musk alleges breach of contract over OpenAI's shift from nonprofit to for-profit status, seeking more than $130 billion in damages.
under30ceo.comJury selection started on April 27, 2026, in a federal courtroom in Oakland, California, for a civil trial stemming from Elon Musk's lawsuit against OpenAI, its CEO Sam Altman, and others. The lawsuit, filed in 2024, centers on allegations that OpenAI's shift from a nonprofit to a for-profit structure violated the organization's founding agreement.
Musk, who co-founded OpenAI in 2015 as a nonprofit with a mission to develop artificial general intelligence for humanity's benefit, claims breach of contract, fraud, and unjust enrichment. Defendants include Altman, OpenAI president Greg Brockman, and Microsoft, with Musk seeking damages exceeding $130 billion, according to court documents reviewed by NBC News.
Musk provided $38 million in initial funding, which he states accounted for 60% of the nonprofit's seed capital, per his court filings. OpenAI's response, as stated in court documents, asserts that Musk departed the company in 2018 following disputes and failed to honor a $1 billion funding commitment he had pledged.
The trial is projected to run two to four weeks, with opening statements anticipated after jury selection concludes, according to statements from U.S. District Judge [name not specified in sources; the presiding judge is not named in the provided bundle].
Expected witnesses include Musk, who heads Tesla and SpaceX; Altman; and Microsoft CEO Satya Nadella, as listed in pretrial filings reported by The New York Times. Additional potential witnesses may involve current and former OpenAI board members and AI researchers, per disclosures in the case.
Court records include a 2016 email from Musk recommending that OpenAI collaborate with Microsoft for cloud services rather than Amazon, as cited in Business Insider. Another document features notes from Brockman indicating interest in "personal wealth accumulation," according to excerpts in the BBC News report.
OpenAI was established in 2015 as a nonprofit by Musk and Altman, who served as co-chairs, with an original charter emphasizing safe AI development for public good, per founding documents referenced in The Guardian. The company restructured in October 2023 to a for-profit entity overseen by a nonprofit board, as described in OpenAI's official statements.
Musk, now operating his own AI venture xAI, contends this restructuring deviated from the nonprofit mission, according to his complaint. OpenAI maintains in its court filings that Musk had previously concurred on the necessity of a for-profit model to secure funding but proposed merging it with Tesla.
The dispute has involved public statements, including Musk's January 2026 post on X: "Can’t wait to start the trial. The discovery and testimony will blow your mind," as reported by NBC News. " per the same NBC News article.
Musk's requested remedies include directing any recovered funds to OpenAI's nonprofit arm, removing Altman and Brockman from leadership, and an injunction to enforce the original charter, as outlined in his legal filings. OpenAI characterized these demands as "a legal ambush" in its response to the court.
The jury will provide an advisory opinion, with the judge issuing the final ruling on liability and remedies, according to procedural details in the New York Times coverage. No publicly released prediction market data beyond a 32% success probability for Musk as of late April 2026 is detailed in the sources.
The U.S. government has not issued any public statements on the case as of April 27, 2026, per the bundle. The proceedings occur in Oakland, a location outside major tech centers, with the judge mandating standard security for participants, including witnesses, as noted in Business Insider.
Key Facts
Story Timeline
5 events- Apr 27, 2026
Jury selection begins in Oakland federal courtroom for Musk's lawsuit against Altman and OpenAI.
5 sourcesNBCNews · The New York Times · The Guardian - Oct 2025
OpenAI completes restructuring to for-profit organization reporting to nonprofit foundation.
2 sourcesNBCNews · The Guardian - 2024
Musk files lawsuit against Altman, Brockman, OpenAI, and Microsoft seeking restitution.
3 sourcesNBCNews · BBC News · The Guardian - 2018
Musk leaves OpenAI after disagreements on structure and funding.
2 sourcesNBCNews · The Guardian - 2015
Musk and Altman co-found OpenAI as a nonprofit research center.
4 sourcesNBCNews · BBC News · The Guardian · The New York Times
Potential Impact
- 01
OpenAI could face leadership changes if Musk prevails on injunction requests.
- 02
Tech industry partnerships could shift based on trial revelations about internal deals.
- 03
xAI gains competitive edge if OpenAI is disrupted by outcomes.
- 04
Microsoft may incur financial penalties as a co-defendant in the case.
- 05
Public perception of AI companies may evolve with exposed communications.
- 06
Future AI nonprofit conversions face increased legal scrutiny.
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