Jury selection begins Monday in Oakland for a federal civil trial pitting tech tycoon Elon Musk against OpenAI CEO Sam Altman in a dispute that could reshape the AI industry.
NBC News reports that the trial, scheduled to run for four weeks, represents both a business dispute and a personal conflict between two of technology’s most prominent figures. At its center lies the question of whether OpenAI betrayed its nonprofit mission when it transformed into a for-profit enterprise.
Judge Yvonne Gonzalez Rogers, who is presiding over the case, characterized the proceedings as “billionaires versus billionaires” during a hearing last year. The trial is expected to feature testimony from a roster of high-profile tech executives, including Musk, the CEO of Tesla and SpaceX, Altman, and possibly Microsoft CEO Satya Nadella, along with current and former OpenAI board members and leading AI researchers.
The dispute stems from OpenAI’s evolution since its 2015 founding. Musk and Altman served as the organization’s founding co-chairs when it was established as a nonprofit research center. However, OpenAI completed a restructuring in October that created a for-profit organization still reporting to a nonprofit foundation.
Musk, who now competed with OpenAI through xAI, alleges that Altman and other OpenAI leaders betrayed the company’s original mission. He claims they accepted his financial contributions, guidance, and time under false pretenses of building a public-spirited enterprise, only to later pursue profit. Musk filed suit against Altman and numerous co-defendants in 2024, initially seeking restitution he later valued at $134 billion.
The defense argues that Musk is distorting the historical record. They contend that Musk departed OpenAI in 2018 after a disagreement and never fulfilled his pledged one billion dollar contribution. Furthermore, they assert that Musk himself supported converting OpenAI into a for-profit entity years ago to facilitate capital raising, but wanted to merge the organization into Tesla rather than allow it to operate independently.
Both parties have expressed confidence in their positions. “Can’t wait to start the trial. The discovery and testimony will blow your mind,” Musk posted in January on X. Altman responded in February, also on X, stating “Really excited to get Elon under oath in a few months, Christmas in April!”
The relationship between Musk and Altman relationship has deteriorated into personal attacks. Musk has repeatedly referred to “Scam Altman” on X, while Altman publicly demanded the return of his $45,000 deposit for a Tesla Roadster, Musk’s long-delayed sports car.
If Musk prevails, the consequences for OpenAI could be severe. In a January court filing, Musk indicated he would seek 134 billion dollars from OpenAI and Microsoft, a major OpenAI backer and co-defendant. However, in an amended filing this month, Musk proposed that any funds recovered should go to OpenAI’s charitable division. He also requested the judge order the removal of Altman and OpenAI co-founder Greg Brockman, along with a permanent injunction preserving OpenAI’s original charter. OpenAI characterized these proposed remedies as a “legal ambush” on the eve of trial.
The case features an unusual structure where the jury serves in an advisory capacity. Judge Rogers will consider their verdict but retain final authority over liability questions. She has also stated that she alone would determine any remedy if the case reaches that stage.
Judge Rogers has established strict courtroom protocols. She has ordered all participants, regardless of wealth or status, to use the regular courthouse entrance and undergo standard security screening. “That some of the parties and witnesses may have high profiles does not warrant special privileges,” she wrote in an order last month. She has also cautioned the parties against excessive litigation tactics, warning that the court “will not waste precious judicial resources on the parties’ gamesmanship.”
As tech tycoons battle it out in court, it is more important than ever for conservatives to control how AI is used by their loved ones, organizations, and the country at large. Breitbart News social media director Wynton Hall has written his instant bestseller Code Red: The Left, the Right, China, and the Race to Control AI to serve as the definitive guide on how the MAGA movement can create positions on AI that benefit humanity without handing control of our nation to the leftists of Silicon Valley or allowing the Chinese to take over the world.
Read more at NBC News here.
Lucas Nolan is a reporter for Breitbart News covering issues of AI, free speech, and online censorship.