Trial Between Musk and Altman Set to Begin

Elon Musk and Sam Altman are gearing up for a significant legal battle in Oakland, California. This trial marks the culmination of a long-standing dispute over Musk’s allegations that Altman violated their original agreement regarding OpenAI—a non-profit they co-founded—by converting it into a for-profit company.

A number of prominent figures from the tech world are expected to take the stand this week, with jury selection starting on Monday. The trial is anticipated to last two to three weeks, with Musk and Altman both expected to testify, along with Microsoft CEO Satya Nadella.

Musk, who leads xAI, claims Altman breached their contract and unjustly enriched himself by turning OpenAI—parent company of ChatGPT—into a business venture without his consent.

OpenAI, along with its president Greg Brockman and partner Microsoft, are named as defendants in this case. Microsoft stepped in as the primary investor after Musk stopped funding the organization in 2018, following his departure from the board.

Having invested around $38 million into OpenAI between late 2015 and mid-2017, Musk initially sought over $100 billion in damages. However, after some unfavorable pre-trial rulings, he has shifted his claim to an unspecified monetary amount intended for OpenAI’s charitable side.

Musk is also trying to have Altman removed from OpenAI’s board due to what he describes as misrepresentation. He noted that the board recognized this alleged misconduct when they briefly fired Altman as CEO in 2023—only to reinstate him days later.

OpenAI has countered Musk’s claims, suggesting he agreed back in 2017 that for the company to move forward, a profitable model would be necessary. They also accused him of acting out of jealousy and regret after stepping away.

The organization asserted that Musk’s contributions were merely tax-deductible donations, not investments, which means he doesn’t hold ownership rights.

Furthermore, OpenAI hinted that Musk may be leveraging this high-profile case to promote his own for-profit business, xAI.

“Part of this is about whether a jury believes the people who will testify and whether they are credible,” U.S. District Judge Yvonne Gonzalez Rogers remarked earlier this year during a hearing, highlighting the need for the trial.

The trial is expected to shed light on the bitter fallout between the two tech giants and further details regarding the competitive landscape in AI development.

An email exchange from 2023 has emerged as part of the evidence, offering insight into their once-cordial relationship.

In one email, Altman described Musk as his “hero,” expressing appreciation for his early support, while lamenting the public disputes: “I don’t think OpenAI would have happened without you—and it really … hurts when you publicly attack OpenAI.” Musk, in turn, responded, “I hear you and it is certainly not my intention to be hurtful, for which I apologize, but the fate of civilization is at stake.”

Musk is busy not just with this trial but also with another lawsuit against Colorado, which is introducing a law to prevent AI systems from discriminating based on race. The Department of Justice (DOJ) has intervened, arguing that the state’s new law infringes on First and Fourteenth Amendment rights by imposing Diversity, Equity, and Inclusion (DEI) standards on private businesses.