Elon Musk vs. Sam Altman: Trial Over OpenAI's For-Profit Shift Begins
Elon Musk and OpenAI CEO Sam Altman go to trial this week in Northern California over OpenAI's restructuring from a nonprofit to a for-profit entity. Musk, who co-founded OpenAI in 2015 and left in 2018, alleges Altman and president Greg Brockman deceived him into bankrolling the company with promises it would remain a nonprofit dedicated to benefiting humanity. He seeks up to $134 billion in damages from OpenAI and Microsoft, and asks the court to remove Altman and Brockman and restore OpenAI as a nonprofit. Nine jurors will deliver an advisory verdict; Musk, Altman, Brockman, former chief scientist Ilya Sutskever, former CTO Mira Murati, and Microsoft CEO Satya Nadella are expected to testify. The trial could impact OpenAI's planned IPO, valued at over $850 billion, and give Musk's rival xAI (valued at $1.25 trillion with SpaceX) an advantage. State attorneys general of California and Delaware have already approved OpenAI's new structure with conditions, but legal experts question Musk's standing and the applicable law.
Key facts
- Trial begins this week in Northern California.
- Musk seeks $134 billion in damages from OpenAI and Microsoft.
- Musk co-founded OpenAI in 2015, left in 2018.
- OpenAI valued at over $850 billion; xAI/SpaceX at $1.25 trillion.
- Nine jurors will deliver advisory verdict.
- Altman, Brockman, Sutskever, Murati, Nadella expected to testify.
- California and Delaware AGs approved OpenAI's restructuring.
- Musk alleges breach of charitable trust; experts say wrong body of law.
Entities
Artists
- Elon Musk
- Sam Altman
- Greg Brockman
- Ilya Sutskever
- Mira Murati
- Satya Nadella
- Jill Horwitz
- Rose Chan Loui
Institutions
- OpenAI
- Microsoft
- Tesla
- xAI
- SpaceX
- MIT Technology Review
- Northwestern University
- UCLA School of Law
- California Attorney General
- Delaware Attorney General
- Wired
Locations
- Northern California
- California
- Delaware
- Oakland
- United States