crime

Musk's OpenAI lawsuit jury selection begins Monday

The world's richest person will argue that Sam Altman deceived him about OpenAI staying nonprofit, a case that could reshape AI governance after his $134 billion damages claim was dismissed.

Apr 27th 2026 · United States

Elon Musk's high-profile lawsuit against OpenAI begins jury selection on Monday at an Oakland federal courthouse, where the world's wealthiest person will face off against the artificial intelligence company he helped create in 2015 as a nonprofit designed to develop AI for humanity's benefit. The world's richest person is now suing the startup he once backed and funded with millions of dollars, arguing that OpenAI's Chief Executive Sam Altman tricked him into believing the organization would remain altruistic before it transformed into a commercial enterprise that took billions in investment from Microsoft. The trial before Judge Yvonne Gonzalez Rogers will determine whether OpenAI broke promises to Musk or simply evolved strategically to compete in the booming AI sector, where ChatGPT now rivals Musk's own Grok chatbot made by his xAI lab. After his initial 26 claims were trimmed to four, Musk agreed last week to drop his two fraud claims to streamline proceedings, leaving his breach of charitable trust claim as the centerpiece of his case. Legal experts and prediction markets give Musk roughly a 40 percent chance of victory, down significantly from the 57 percent he touted in January. Even if he succeeds, experts believe any monetary award would fall far short of the $134 billion he originally sought, with Judge Rogers having dismissed that figure as being "pulled out of the air." The judge has also questioned Musk's standing to sue as a donor rather than a board member, though she is allowing the case to proceed using a 1964 California precedent that permits donors with a "special interest" to challenge alleged misuse of charitable assets. The trial will be split into liability and remedy phases, with the jury's findings on damages serving only in an advisory capacity. OpenAI has countered that Musk departed the company because he was not granted the absolute control he demanded, not because of concerns about its nonprofit mission, and noted that he launched his own AI venture just days before calling for a six-month moratorium on advanced AI development. The company dismissed his lawsuit as "nothing more than a harassment campaign that's driven by ego, jealousy and a desire to slow down a competitor." Microsoft CEO Satya Nadella is among those slated to testify at the trial, and the judge has reserved the right to determine remedies herself, potentially ordering governance reforms such as independent board seats and mission-protective covenants rather than the wholesale restructuring Musk demands. OpenAI's current hybrid structure gives its nonprofit foundation control over a for-profit arm, a restructuring approved by California's attorney general after months of negotiation.