Elon Musk vs Sam Altman: OpenAI lawsuit enters trial as jury selection begins
Last Updated: 2026-04-29 15:06:39
A legal dispute between Elon Musk and OpenAI CEO Sam Altman has entered a new stage, with jury selection underway in a US federal court in Oakland, California. The case focuses on allegations that OpenAI deviated from its original nonprofit mission and shifted toward a commercial model.
What Musk alleges
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Musk, who co-founded OpenAI in 2015 and contributed about $38 million, argues that the organisation was initially set up as a nonprofit aimed at developing artificial intelligence for the benefit of humanity. According to the lawsuit, this mission included commitments to transparency and open-source development.
He claims that OpenAI later transitioned into a for-profit structure, which he says contradicts its founding principles. The lawsuit further alleges that Musk was misled into supporting the organisation financially while internal plans for commercialisation were already being considered.
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Musk is seeking compensation estimated at $134 billion. He has also called for Altman’s removal as CEO and stated that any financial award should go to OpenAI’s nonprofit arm rather than to him personally.
Role of Microsoft partnership
A central issue in the case is OpenAI’s partnership with Microsoft. The technology company has invested billions in OpenAI and has integrated its AI technologies into its products.
Musk argues that this partnership shifted OpenAI’s direction toward profit-driven operations. He claims such commercial agreements are not aligned with the organisation’s original nonprofit intent and have altered its governance and priorities.
OpenAI’s response
OpenAI has denied the allegations. The company maintains that it continues to work toward building artificial general intelligence that benefits humanity.
In its defence, OpenAI states that developing advanced AI systems requires significant financial resources, which makes partnerships and commercial structures necessary. The company also claims Musk exited OpenAI after disagreements over control and leadership direction.
OpenAI further argues that Musk’s financial contribution was treated as a donation, not an investment, and was used in line with its mission.
What happens next
With jury selection now underway under Judge Yvonne Gonzalez Rogers, the trial is expected to examine OpenAI’s structural evolution, funding decisions, and governance model.
The outcome could have broader implications for how AI organisations balance nonprofit goals with the need for capital, especially as the cost of developing advanced systems continues to increase