Musk vs. OpenAI Trial: What the Lawsuit Is Really About

TLDR

• Jury selection completed in Oakland federal court for Musk’s lawsuit against OpenAI and Sam Altman
• Musk is seeking $150 billion in damages, claiming OpenAI abandoned its nonprofit mission
• Internal documents, including a co-founder’s diary, reveal early power struggles at OpenAI
• The case centers on charitable trust law — whether OpenAI illegally moved public assets into private hands
• Key witnesses expected include Musk, Altman, and Microsoft CEO Satya Nadella

Elon Musk’s lawsuit against OpenAI and its CEO Sam Altman officially moved to trial this week after jury selection wrapped up Monday in an Oakland, California federal court.

Musk, one of OpenAI’s original co-founders, sued the company, Altman, and co-founder Greg Brockman in 2024. He claims they betrayed OpenAI’s founding mission as a nonprofit designed to benefit humanity.

He is seeking $150 billion in damages from OpenAI and Microsoft, one of OpenAI’s largest investors. Any proceeds would go to OpenAI’s charitable arm.

Opening statements are expected Tuesday. Nine jurors were seated after questioning from the judge and lawyers on both sides. Some prospective jurors expressed negative views of Musk, though most said they could remain fair.

Internal documents released during the case give a rare look inside OpenAI’s early days. A diary entry from Brockman, written in 2017, reads: “This is the only chance we have to get out from Elon.”

Another entry shows Brockman weighing personal finances: “Financially, what will take me to $1B?”

Musk gave around $38 million to OpenAI between 2016 and 2020. He left the board in early 2018. In 2019, OpenAI restructured as a for-profit unit, still governed by the nonprofit. Last year, it converted again to a public benefit corporation.

Musk argues this conversion moved valuable assets — built using charitable donations and his own money — into private hands. He wants OpenAI returned to nonprofit status and both Altman and Brockman removed from their roles.

What the Case Is Actually About

Legal analysts say this trial is less about artificial intelligence and more about nonprofit conversion law. The core question is whether OpenAI’s leadership respected its charitable obligations when it shifted to a for-profit structure.

Under U.S. charitable trust law, nonprofit assets are held in trust for the public good. When a nonprofit restructures, those assets are supposed to remain in the charitable sphere.

OpenAI’s nonprofit arm now holds a 26% stake in the for-profit company. Musk’s legal team calculated damages by looking at OpenAI’s valuation and what share of it they say is attributable to Musk’s early contributions.

Microsoft, also named as a defendant, says it only partnered with OpenAI after Musk left the board and denies any collusion.

Who Will Testify

Musk, Altman, and Microsoft CEO Satya Nadella are all expected to take the stand.

Shivon Zilis, a former OpenAI board member and mother to four of Musk’s children, is also expected to testify. OpenAI’s lawyers allege she passed internal OpenAI information to Musk.

OpenAI is currently valued at over $850 billion and is preparing for a potential IPO that could push that valuation to $1 trillion. The trial could complicate those plans by drawing attention to leadership disputes.

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