It’s happening. Today, April 28, jury selection begins in a federal courthouse in Oakland for one of the most high-profile tech trials in recent years: Elon Musk versus Sam Altman and OpenAI.
What’s at Stake
Musk co-founded OpenAI in 2015 as a nonprofit dedicated to developing AI safely for the benefit of humanity. The promise: the technology stays open, the organization stays charitable. Then OpenAI created a for-profit subsidiary in 2019, brought in Microsoft as an investor, and became the most valuable AI startup in the world.
Musk says that was a betrayal. In his lawsuit, he’s seeking up to $134 billion in damages from OpenAI and Microsoft for ‘unjust enrichment.’ He also wants Altman and OpenAI president Greg Brockman removed from their positions, and for OpenAI to revert to operating as an actual nonprofit.
Four Claims, One Jury
Of the original 26 claims Musk filed in 2024, only four remain: unjust enrichment, fraud, constructive fraud, and breach of charitable trust. Judge Yvonne Gonzalez Rogers has split the trial into two phases. First, a jury will determine liability — whether any wrongdoing occurred. Only then will damages be assessed.
Nine jurors will be seated with no alternates. The court will be in session Monday through Thursday, 8:30 AM to 1:40 PM Pacific. The liability phase is expected to run through mid-May.
Why This Matters
This trial isn’t just about two heavyweight egos clashing. It raises fundamental questions: Can an organization founded as a nonprofit simply flip to for-profit? Who owns the results when an organization changes its mission? And what does it mean for the AI industry if courts draw lines here?
Meanwhile, OpenAI has pushed ahead with its conversion to a for-profit structure. Musk runs his own AI company with xAI and Grok. Both sides have massive financial interests at play. But the outcome of this trial could set precedents that extend far beyond this specific dispute.
My Take
Whatever the verdict, the AI industry will look different afterward. Not because of the money, but because of the precedent. If a court rules that OpenAI’s nonprofit pledge was binding, it has implications for every company that starts with a charitable structure and later wants to make profits. Get the popcorn ready.
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