AI trial showdown: Elon Musk vs. Sam Altman over OpenAI’s origins

An unprecedented AI trial begins Monday in Oakland as billionaire Elon Musk and OpenAI chief Sam Altman prepare to clash over the nonprofit’s 2015 launch.

AI trial: Musk vs. Altman

The case, overseen by Judge Yvonne Gonzalez Rogers, alleges Musk funded the venture with roughly ↑ $38 million only to be sidelined when the startup pivoted to a for‑profit model now valued at ↑ $852 billion. Musk, who once sought > $100 billion in damages, now asks that any award fund OpenAI’s charitable arm, a request that could siphon cash from its lucrative partnership with Microsoft. Both men will testify, offering a rare glimpse into the strategic calculations that ignited the modern AI race.

“The jury must decide which testimony they find credible,” Judge Rogers told reporters.

Musk’s lawsuit also seeks Altman’s removal from OpenAI’s board, a move tied to a 2023 board decision that briefly ousted the CEO before reinstating him. Meanwhile, Musk faces fresh scrutiny after a separate jury found him liable for defrauding investors in his $44 billion Twitter takeover. The outcome could reshape control of AI technologies that critics warn may disrupt labor markets and pose existential risks. For context, see Reuters coverage of the case and Bloomberg analysis of OpenAI’s valuation.

Words by: Julian Reed

Consumer Electronics Expert