Jury Selection Begins in Elon Musk's Lawsuit Against OpenAI in Oakland Federal Court
Elon Musk's lawsuit against OpenAI and CEO Sam Altman over the company's shift from nonprofit status started with jury selection in Oakland, California. The case centers on allegations of betraying OpenAI's founding mission. Outcomes could affect OpenAI's structure and funding for its charitable arm.
Tesla Owners Club Belgium / Wikimedia (CC BY 2.0)Jury selection began Monday in Oakland, California, for Elon Musk's lawsuit against OpenAI and its CEO Sam Altman, accusing them of abandoning the company's nonprofit mission. S. District Judge Yvonne Gonzalez Rogers in Northern California, follows Musk's filing of the suit in August 2024.
OpenAI, founded in 2015 as a nonprofit startup, is now valued at $852 billion. Musk invested about $38 million in OpenAI from December 2015 through May 2017. Microsoft became OpenAI's biggest investor after Musk cut off his funding, with investments estimated at more than $13 billion to date.
Musk initially sought more than $100 billion in damages but abandoned the bid for personal damages and now seeks an unspecified amount to fund OpenAI's charitable arm. The lawsuit seeks Sam Altman's ouster from OpenAI's board. OpenAI's board fired Altman as CEO in 2023 and reinstated him days later.
ChatGPT was launched in 2022.
Some potential jurors expressed negative views of Musk but stated they could treat him fairly. A jury in another case held Musk liable last month for defrauding investors during his $44 billion takeover of Twitter in 2022. SpaceX plans an initial public offering this summer.
Elon Musk is 54 years old, and Sam Altman is 41 years old. She is allowing Musk to be questioned about his attendance at the 2017 Burning Man festival in Nevada.
She is also allowing Musk to be questioned about his relationship with Shivon Zilis, a former OpenAI board member and mother of several of his children. A 20-year-old man was arrested earlier this month on attempted murder charges after throwing a Molotov cocktail at Sam Altman's San Francisco home. Elon Musk's estimated fortune is about $780 billion.
Sam Altman's fortune is roughly $3 billion. OpenAI converted to a for-profit public benefit corporation, with the original charitable foundation retaining roughly a 26% minority stake.
Sam Altman updated OpenAI’s mission statement in a 1,100-word document published on OpenAI’s website on Sunday. The updated mission statement details five guiding principles for artificial general intelligence including democratization, user empowerment, safety resilience, corporate adaptability, and universal prosperity.
Sam Altman wrote 'Power in the future can either be held by a small handful of companies using and controlling superintelligence, or it can be held in a decentralised way by people' and 'We believe the latter is much better, and our goal is to put truly general AI in the hands of as many people as possible...
Altman claimed that holding back models like GPT-2 was a 'misplaced worry' and that OpenAI would 'embrace that uncertainty' by deploying systems. 5 last week. 5 is available only to ChatGPT Plus, Pro, Business, and Enterprise users.
Greg Brockman said 'What’s really special about this model is how much more it can do with less guidance' and claimed it could conduct 'messy, multi-part tasks' intuitively and independently. 5. Musk accuses Altman of fraud and is seeking more than $130 billion in damages for betraying OpenAI's founding mission of being non-profit.
Jury selection kicked off in the Musk v. Altman trial at a federal courthouse in Oakland, California, followed by opening arguments. Judge Yvonne Gonzalez Rogers stated during a court hearing earlier this year that 'Part of this is about whether a jury believes the people who will testify and whether they are credible' while explaining why the case merited a trial.
Musk and Altman agreed in 2015 to build AI in a more responsible and safer way than profit-driven companies controlled by Larry Page, Sergey Brin, and Mark Zuckerberg.
Key Facts
Story Timeline
6 events- 2026-05-03 (current)
Trial ongoing following jury selection on Monday in Oakland, California.
5 sourcesThe Washington Times · Ars Technica · France 24 · cnbc.com - Last week
OpenAI unveiled GPT-5.5.
1 sourceThe Independent - Sunday
Sam Altman published updated OpenAI mission statement.
1 sourceThe Independent - Earlier this month
20-year-old arrested for throwing Molotov cocktail at Altman's home.
1 sourceThe Washington Times - Last month
Jury held Musk liable for defrauding investors in Twitter takeover.
1 sourceThe Washington Times - August 2024
Musk filed lawsuit against OpenAI.
1 sourceThe Washington Times
Potential Impact
- 01
Influence on AI industry governance and nonprofit conversions.
- 02
Reputational effects on Musk amid SpaceX IPO plans.
- 03
Potential ouster of Sam Altman from OpenAI board if Musk prevails.
- 04
Funds redirected to OpenAI's charitable arm, affecting for-profit operations.
- 05
Possible delays in OpenAI's development while xAI advances.
Transparency Panel
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