Elon Musk’s long-running legal battle against OpenAI, Sam Altman and Microsoft is heading to trial, with a jury now seated in federal court in Oakland, California.
Jury selection was completed on Monday for a high-stakes case that could expose years of internal tension inside OpenAI, including disputes among its founders over control, money and the company’s shift away from its original nonprofit structure.
A trial over OpenAI’s founding promise
Musk, one of OpenAI’s original co-founders, is trying to convince a nine-person jury that Altman and OpenAI president Greg Brockman misled him into supporting the company by moving away from its founding mission as a nonprofit focused on benefiting humanity.
Reuters reported that Musk is seeking $150 billion in damages from OpenAI and Microsoft, with proceeds intended for OpenAI’s charitable arm, according to a person involved in the case.
Fox Business reported that Musk’s lawsuit claims OpenAI violated its nonprofit mission when it created a for-profit entity in 2019. The report said Musk is also seeking the removal of Altman and Brockman, and that he has argued any damages would go to OpenAI’s nonprofit entity.
Internal documents could shape the case
The trial is expected to surface internal communications from OpenAI’s early years. One key document is a diary entry from Brockman in fall 2017, where he wrote, “This is the only chance we have to get out from Elon,” and questioned whether Musk was the “glorious leader” he would choose. The entry is part of thousands of pages of internal documents revealed in court since Musk sued OpenAI, Altman and Brockman in 2024.
Those documents could be central to Musk’s argument that OpenAI’s leaders exploited his name, funding and recruiting influence to build what his lawsuit describes as a profit-focused “wealth machine.”
Musk wants OpenAI to revert to a nonprofit, remove Altman and Brockman as officers, and remove Altman from OpenAI’s board.
OpenAI says Musk wanted control
OpenAI is pushing back by arguing that Musk’s lawsuit is driven by competition and control, not by charitable principle. OpenAI says Musk was involved in discussions about creating a new structure and had demanded to be CEO.
Microsoft, also named as a defendant, denies colluding with OpenAI and says its partnership with the company began only after Musk left.
OpenAI counters Musk’s claims by pointing to his earlier efforts to merge OpenAI with Tesla or create a for-profit entity led by him. OpenAI also frames the suit as a tactic to help Musk’s own AI company, xAI, compete against OpenAI.
Major tech figures may testify
The trial is expected to draw some of Silicon Valley’s biggest names.
Musk, Altman and Microsoft CEO Satya Nadella are expected to testify, while Shivon Zilis, a former OpenAI board member and mother to four of Musk’s children, is likely to be a key witness. OpenAI’s lawyers argue that Zilis funneled information about OpenAI to Musk.
The case also arrives at a sensitive moment for OpenAI. The company faces growing competition from rivals including Anthropic, is spending billions on computing resources, and is preparing for a potential IPO that could value the company at $1 trillion. OpenAI’s nonprofit arm now holds a 26% stake in the company after its latest restructuring into a public benefit corporation.
A courtroom test for AI’s most powerful company
The trial is about more than a personal feud between Musk and Altman. It could force OpenAI’s origin story, governance model and commercial transformation into public view at a time when the company is one of the most influential forces in artificial intelligence.
Opening statements are expected Tuesday. If the case proceeds as expected, the courtroom battle may become one of the clearest public tests yet of whether OpenAI’s rapid evolution from nonprofit research lab to AI giant was a necessary adaptation — or, as Musk argues, a betrayal of its founding mission.
