A major legal showdown is set to unfold in the artificial intelligence sector as Elon Musk takes on Sam Altman in a closely watched courtroom battle.
The trial, involving OpenAI, is expected to begin with jury selection on Monday and will be held near San Francisco.
Musk has accused Altman of betraying OpenAI’s original nonprofit mission, alleging that he was misled into investing millions of dollars in 2015 under the belief that the company would operate as a nonprofit entity for the benefit of humanity.
According to Musk’s complaint, OpenAI later shifted toward a commercial model, creating a for-profit arm to fund large-scale infrastructure such as data centres. He argues that this move contradicts the organisation’s founding principles and has called for OpenAI to return to its nonprofit structure. Musk has also demanded the removal of Altman and co-founder Greg Brockman from leadership roles.
Initially seeking damages of up to $134 billion, Musk has since stated that any compensation awarded would be redirected to OpenAI’s nonprofit foundation.
OpenAI, however, has rejected the allegations, arguing that Musk’s departure from the company was driven by his desire for greater control rather than concerns about its mission. The company described the lawsuit as a “harassment campaign” motivated by rivalry and competition.
The case also highlights intensifying competition in the AI industry, particularly between OpenAI’s widely used chatbot and Musk’s alternative developed through xAI.
With Microsoft backing OpenAI with significant investments, the company is now valued at approximately $852 billion.
Beyond the legal dispute, the trial is expected to raise broader questions about the future of artificial intelligence, including concerns over job displacement, ethical use, and potential risks to humanity.
A ruling in the case is anticipated by mid-May.
