Elon Musk and Sam Altman are going to court over OpenAI’s future
A jury will decide if OpenAI can go public or must stay nonprofit.
A yearslong legal feud between Elon Musk and OpenAI CEO Sam Altman reaches a climax this week in a Northern California courtroom, with sweeping implications for OpenAI's future. Musk, who co-founded OpenAI in 2015 with a $38M donation, alleges Altman and president Greg Brockman deceived him into funding the company by promising it would remain a nonprofit dedicated to open-source AI for humanity's benefit. Instead, Musk claims, they secretly pivoted to a for-profit subsidiary, abandoning the original mission. He is seeking up to $134 billion in damages from OpenAI and Microsoft, removal of Altman and Brockman from leadership, and a court order to restore OpenAI as a nonprofit. A nine-person jury will deliver a non-binding advisory verdict to guide the judge.
The trial comes as OpenAI prepares for a highly anticipated IPO, and the court could block the for-profit restructuring or even oust current executives. Key witnesses include Musk, Altman, Brockman, former chief scientist Ilya Sutskever, former CTO Mira Murati, and Microsoft CEO Satya Nadella. The case hinges on whether Musk has legal standing as a former donor and board member—a point that puzzles legal scholars, who note that state attorneys general typically enforce nonprofit rules. California and Delaware already approved OpenAI's new structure in October 2025 with conditions on safety oversight. Critics, including Musk and AI safety advocates, argue the deal doesn't ensure accountability. The trial promises rare transparency into the secretive AI industry, with internal texts and diaries expected to reveal the founding and growth of OpenAI.
- Musk seeks $134B in damages from OpenAI and Microsoft for breach of nonprofit promise
- Trial could block OpenAI's IPO and remove Altman and Brockman from leadership
- Nine jurors will deliver advisory verdict; key witnesses include Sutskever, Murati, Nadella
Why It Matters
This trial could redefine AI governance and set precedent for nonprofit-to-for-profit conversions in tech.