Elon Musk is expected to testify as early as Tuesday in a closely watched legal battle against Sam Altman, a key moment in a case that could shape the future of artificial intelligence management.
The lawsuit, which is being held in federal court in California, centers on Musk’s lawsuit against OpenAI and its management over the organization’s transition from a nonprofit to a for-profit structure.
Opening statement: “They stole charity”
In a scathing opening statement, Musk’s lawyer, Steven Molo, accused the defendants of betraying the public trust.
“The defendants in the case stole from charity and we ask you to hold them accountable,” Molo told jurors.
He argued that OpenAI’s leadership prioritizes profit over public good, undermining Musk’s vision for ethical AI development.
Musk calls for a $150 billion structural fix
Musk, one of the world’s richest people, is seeking up to $150 billion in damages from OpenAI and Microsoft, one of its biggest investors.
It further requests the court to:
-Restore OpenAI to a non-profit structure
-Remove Altman and Brockman from leading roles
-Remove Altman from the board
The suit includes claims for breach of charitable trust and unjust enrichment.
Controversy over OpenAI mission shift
At the heart of the case is OpenAI’s transition from a non-profit to a for-profit model.
Molo told the court: “It was not a means for people to get rich.”
He likened the shift to a museum being used for profit: “The museum shop can’t loot a museum and sell Picassos… Stealing from charity is absolutely wrong.”
Musk argued that the company’s transformation into a commercial powerhouse violated commitments to donors and the public.
OpenAI is pushing back
OpenAI vehemently denied Musk’s allegations, saying he supported the restructuring and sued only after he failed to gain control.
-He failed to deliver on his $1 billion funding pledge
-He left after being denied management control
-He is now trying to undermine OpenAI in favor of his own AI venture
OpenAI also reported that Musk was involved in early discussions about restructuring the company.
From non-profit to tech giant
OpenAI was co-founded by Musk, Altman and others in 2015 to develop safe artificial intelligence and counter competitors like Google.
Molo said Musk played a key early role: “He developed the strategy. He taught them everything he knows about building a business.”
Musk claims to have contributed about $38 million and helped recruit leading AI researchers, including Ilya Sutskever.
The dispute intensified after OpenAI created a profitable spin-off in 2019 and later secured major funding, including a $10 billion investment from Microsoft in 2023.
Witnesses and Timeline
The trial is expected to last four weeks and the jury is expected to decide on liability by May 12.
Key witnesses can be:
What’s at stake?
The case could reshape the management of one of the world’s most influential artificial intelligence companies and affect its potential IPO plans.
OpenAI, now valued in the hundreds of billions, recently restructured as a public benefit company, allowing it to attract investment while retaining ties to its nonprofit origins.
Bigger questions about the future of AI
Beyond personal disputes, the court raises broader questions about whether artificial intelligence should be developed as a public good or a for-profit enterprise.
As the courtroom battle plays out, the outcome could set a precedent for how AI companies balance innovation, ethics and commercial interests for years to come.
Read also | Elon Musk is the underdog in his $180 billion fight against OpenAI
