Musk-OpenAI trial opens in Oakland over nonprofit mission

Elon Musk's $150 billion civil lawsuit against OpenAI and CEO Sam Altman moved to trial Tuesday in Oakland, with nine jurors seated to hear claims that Altman abandoned the company's original nonprofit mission and turned it into a commercial enterprise for personal gain.

The outcome could reshape governance at one of the world's most valuable AI companies — OpenAI is currently valued at $850 billion — at a moment when a potential IPO could push that figure above $1 trillion, according to Reuters.

Nine jurors — including nurses, city workers and retirees — were seated Monday before the trial opened Tuesday under U.S. District Judge Yvonne Gonzalez Rogers, according to the Korea Times. The judge expects deliberations on defendants' liability to begin by May 12.

Musk, who provided roughly $38 million in seed funding when he and Altman co-founded OpenAI in 2015, alleges that Altman and company president Greg Brockman betrayed him by converting the organization into a "wealth machine" for themselves and investors rather than stewarding AI for humanity's benefit. He is seeking $150 billion in damages directed to OpenAI's charitable arm, along with the removal of Altman and Brockman from leadership. Musk is pressing only breach of charitable trust and unjust enrichment claims, having dropped a bid for personal damages.

OpenAI counters that Musk knew about and supported the transition to a for-profit structure, and that he filed suit only after failing to become CEO and after founding his competing AI company xAI in 2023.

OpenAI created a for-profit subsidiary in March 2019, about a year after Musk departed the board. Last fall, the company restructured as a public benefit corporation with its nonprofit arm retaining a 26 percent stake. Reuters has reported that a potential IPO could value the company above $1 trillion.

Both Musk and Altman are expected to testify, with Musk potentially taking the stand this week. Microsoft Chief Executive Satya Nadella, a key OpenAI backer, is also expected to appear as a witness.

If the defendants are found liable, both sides will present possible remedies to the judge rather than leaving the matter to the jury.

The trial represents the most consequential legal test yet of whether the nonprofit founders of a major AI lab can hold its leadership accountable when commercial ambitions diverge from an original charitable mission.