Elon Musk’s lawsuit against Sam Altman and OpenAI begins this week in Oakland, California. A nine-person jury will hear claims that Altman betrayed the company’s founding mission by transforming OpenAI from a nonprofit into a for-profit enterprise. Dara Kerr and Nick Robins-Early report for The Guardian.
Musk co-founded OpenAI in 2015 alongside Altman and others. The company’s original mission was to develop artificial intelligence for the benefit of humanity, free from financial pressures. Musk contributed around $38 million before leaving the board in 2018 following internal disputes.
Musk alleges Altman deceived him about OpenAI’s nonprofit structure to secure his funding, then pursued lucrative deals with Microsoft and created for-profit subsidiaries. He is seeking over $134 billion in damages, the removal of Altman and president Greg Brockman, and a reversal of the company’s restructuring.
OpenAI denies all allegations. The company says Musk agreed in 2017 that a for-profit structure would be necessary and argues his contributions were tax-deductible donations, not investments. OpenAI describes the lawsuit as a “harassment” campaign driven by jealousy.
The trial is expected to last two to three weeks. Key witnesses include Musk, Altman, and Microsoft CEO Satya Nadella. Court filings have already revealed personal communications between the parties. Unsealed depositions include questions about Musk’s personal life, which his lawyers are seeking to exclude as irrelevant.
The outcome could affect OpenAI’s plans to go public later this year at an estimated $1 trillion valuation.
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