A high-profile legal battle is underway in a federal court in Oakland, as tech billionaire Elon Musk intensifies his lawsuit against OpenAI and its top executives.
Proceedings began this week, with Musk withdrawing his personal damages claim as the case opened before a nine-member jury. Opening arguments commenced Tuesday, following jury selection a day earlier.
Musk is suing OpenAI, its president Greg Brockman, and CEO Sam Altman over allegations of unjust enrichment and breach of charitable trust.
The case is being presided over by Yvonne Gonzalez Rogers, who indicated that jurors are expected to begin deliberations on liability on May 12.
Musk alleges that OpenAI’s leadership deviated from the organization’s founding mission by shifting toward a profit-driven model, describing the company as having become a “wealth machine” for investors. He is seeking up to $150 billion in damages from OpenAI and Microsoft, with any awarded funds proposed to be directed to OpenAI’s nonprofit arm.
He has also asked the court to remove Altman and Brockman from their leadership roles and compel the company to revert to its original nonprofit structure.
Musk, who co-founded OpenAI in 2015, said he contributed approximately $38 million to its early development. He argued that the company’s transition to a for-profit structure in 2019 occurred after his departure from the board.
However, OpenAI maintains that Musk was aware of and supported the structural changes. The company has also suggested that the lawsuit is linked to Musk’s competing AI venture, xAI, which he launched in 2023.
Key figures expected to testify include Musk, Altman, and Satya Nadella. Musk is anticipated to take the stand later this week.
OpenAI reiterated that its evolution followed the success of its AI products, including ChatGPT, and denied any improper coordination with Microsoft, stating that their partnership developed after Musk exited the company.
The jury, comprising individuals from both public and private sector backgrounds, will first determine liability before any decisions on potential remedies are made.