Billionaire tech entrepreneur EElon Musk is set for a major courtroom battle with OpenAI as jury selection begins Monday in a closely watched case over the company’s founding mission.
The trial, holding in a federal court near San Francisco, will determine whether OpenAI strayed from its original non-profit mandate, as alleged by Musk, or lawfully evolved into a commercial force in the global AI industry.
Musk, an early backer of OpenAI, accuses the company of abandoning its altruistic mission in favour of profit-driven expansion, particularly following its transition to a hybrid structure that includes a for-profit arm.
Central to his claim is a 2017 email from OpenAI CEO Sam Altman expressing commitment to a non-profit structure—an assurance Musk argues was later reversed.
Commercial shift and big tech influence
OpenAI established a commercial subsidiary shortly after, citing the massive funding required to develop advanced AI systems.
Tech giant Microsoft subsequently invested billions into the company, with its stake now reportedly valued at around $135 billion.
Microsoft CEO Satya Nadella is expected to testify during the trial.
Legal demands and financial stakes
Musk is seeking up to $134 billion in damages and has asked the court to compel OpenAI to revert to a fully non-profit structure.
He is also pushing for the removal of Altman and OpenAI co-founder Greg Brockman, as well as a severing of ties between OpenAI and Microsoft.
Presiding judge Yvonne Gonzalez Rogers has questioned the basis of Musk’s financial claims, suggesting his legal team may have overstated damages.
OpenAI’s response
OpenAI has strongly rejected the allegations, framing the lawsuit as an attempt by Musk to gain influence and slow down a competing AI venture.
“This case has always been about Elon generating more power and more money,” the company said, describing the suit as “a harassment campaign driven by ego and jealousy.”
The company maintains that its shift to a hybrid model was necessary to secure the funding required for large-scale AI development.
A jury is expected to decide by late May whether OpenAI breached any obligations to Musk.
If the ruling favours Musk, the court will then determine potential remedies, including financial compensation or structural changes to OpenAI’s governance.
Musk has stated that any damages awarded would be directed to OpenAI’s non-profit foundation.
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