OpenAI trial begins: Elon Musk challenges Sam Altman over profit shift

Technology By Technology Editor
Last Updated: 2026-04-28 17:17:37
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A high-profile legal battle involving Elon Musk and OpenAI CEO Sam Altman has begun in a federal court in Oakland, California. The case centres on Musk’s claims that OpenAI abandoned its original nonprofit mission in favour of becoming a profit-driven company.

Opening statements are set to begin after a jury of nine members was selected. The case is expected to run for several weeks, with jurors tasked with determining whether OpenAI’s leadership breached its obligations.

Musk’s allegations and demands

Musk, who co-founded OpenAI in 2015, alleges that Altman and OpenAI president Greg Brockman deviated from the organisation’s founding goal of developing artificial intelligence for the benefit of humanity. He claims the company instead evolved into a commercial entity focused on financial gain.

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The Tesla and SpaceX CEO is seeking damages of $150 billion from OpenAI and Microsoft, one of its key investors. The lawsuit proposes that any awarded damages be directed to OpenAI’s charitable arm.

Musk has also called for OpenAI to return to its nonprofit structure and has requested the removal of Altman and Brockman from leadership roles.

OpenAI and Microsoft respond

OpenAI has rejected Musk’s claims, stating that he was aware of and supported the shift to a capped-profit model during his involvement with the organisation. The company has argued that Musk’s legal action stems from disagreements over leadership and strategy.

Microsoft has denied any wrongdoing, maintaining that its partnership with OpenAI began after Musk left the board.

Broader implications for OpenAI

The trial is expected to examine internal decisions, funding structures, and leadership dynamics at OpenAI. It could also impact the company’s future plans, including a potential initial public offering.

Witnesses in the case are expected to include Musk, Altman, and Microsoft CEO Satya Nadella. The court aims to have jurors deliberate on liability by mid-May.

The outcome may influence how AI companies balance commercial interests with broader societal commitments, at a time when artificial intelligence is drawing increased public and regulatory attention.

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