The legal battle between Elon Musk and Sam Altman has moved to a decisive stage, with the trial set to begin in a federal court in Oakland, California. The proceedings are being overseen by Judge Yvonne Gonzalez Rogers, who has earlier described the dispute as a clash between billionaires.
What the case is about
The case, first filed in 2024, centres on Musk’s claim that OpenAI moved away from its founding purpose of building artificial intelligence for the public good. According to court filings, Musk alleged that the organisation transitioned towards a commercial model, particularly through its association with Microsoft.
Musk has said he contributed about $38 million in OpenAI’s early years, claiming his support was based on assurances that the organisation would remain non-profit and committed to open technology development.
Musk escalates attack before trial
Just hours before the courtroom proceedings, Musk escalated his criticism on X, alleging that Sam Altman and Greg Brockman had diverted a charitable mission for personal gain. In his post, he accused them of having “stole a charity,†and questioned whether US law would permit such actions.
The lawsuit seeks damages estimated at over $100 billion, with Musk stating that any compensation should be directed to OpenAI’s non-profit arm. He has also called for Altman’s removal from leadership.
OpenAI pushes back
OpenAI has denied the allegations, maintaining that it remains committed to developing artificial general intelligence that benefits humanity. The company has argued that Musk left in 2018 after disagreements over control and direction.
In its response, OpenAI said Musk had sought significant authority within the organisation, which was not accepted by other co-founders, including Greg Brockman and Ilya Sutskever. It also stated that Musk’s contribution was a donation, not an investment, and was used in line with its mission.
How the dispute began
The dispute traces back to 2015, when Musk and Altman discussed creating a non-profit entity focused on advanced AI development for public benefit. OpenAI was founded with that vision, positioning itself as an alternative to large technology firms.
Over time, internal differences emerged over funding requirements and the risks of open-sourcing advanced AI. Musk later stepped away, while OpenAI established a for-profit arm to attract investment.
A US court has allowed claims related to breach of charitable trust and unjust enrichment to proceed, while dismissing fraud allegations. The case will now be decided by a jury.
The outcome could shape how AI companies balance public interest commitments with commercial expansion, especially those that began as non-profit entities.
First Published on April 28, 2026, 09:46:07 IST
