Musk vs Altman Trial Enters Week Two

Elon Musk’s $134 billion lawsuit against OpenAI and Sam Altman entered its second week Monday, with OpenAI cofounder Greg Brockman scheduled to testify in Oakland federal court. The trial, which could fundamentally reshape OpenAI’s corporate structure and remove Altman from leadership, centers on Musk’s claims that he was deceived into funding the company’s early development.

According to MIT Technology Review, Musk is seeking to force OpenAI back to nonprofit status, strip Microsoft’s licensing agreements, and remove both Altman and Brockman from their executive roles. The nine-member jury will deliver an advisory verdict to guide the judge’s final decision.

Musk’s Three Days of Testimony

Musk took the stand for three consecutive days starting April 28th, portraying his OpenAI involvement as “an effort to help save humanity.” The Tesla CEO claims Altman and Brockman promised to maintain OpenAI as a nonprofit dedicated to beneficial AI development, only to later restructure the company around a for-profit subsidiary.

The Verge reported that Musk faced cross-examination on April 29th and returned for a third day of testimony on April 30th. His testimony was followed by appearances from his financial manager and Neuralink CEO Jared Birchall.

Musk cofounded OpenAI with Altman in 2015 but left in 2018 following what sources describe as a bitter power struggle over the company’s direction.

Settlement Talks Turn Hostile

Two days before the trial began, Musk texted Brockman suggesting OpenAI settle the lawsuit, according to a Sunday court filing from OpenAI’s lawyers. When Brockman suggested both sides drop their suits, Musk allegedly responded: “By the end of this week, you and Sam will be the most hated men in America. If you insist, so it will be.”

The judge ruled the text exchange inadmissible as evidence, but OpenAI’s legal team argues it demonstrates Musk’s true motivations. The company has filed a countersuit alleging Musk’s case represents “a baseless and jealous bid to derail a competitor” rather than genuine concern for AI safety.

High-Stakes Witness List

Week two features testimony from professor Stuart Russell and Greg Brockman, with live audio streaming available for the first time. Sam Altman is expected to take the stand as the trial continues.

Other scheduled witnesses include:

• Former OpenAI chief scientist Ilya Sutskever
• Former OpenAI CTO Mira Murati
• Microsoft CEO Satya Nadella

The witness list suggests the trial will expose internal communications and decision-making processes that shaped OpenAI’s transformation from nonprofit to hybrid structure.

OpenAI’s Corporate Structure at Stake

Musk’s lawsuit challenges OpenAI’s 2019 creation of a for-profit subsidiary, which enabled the company to raise billions in funding while maintaining its nonprofit parent organization. The structure allowed OpenAI to secure major investments from Microsoft and others while theoretically preserving its mission to develop AI for humanity’s benefit.

If successful, Musk’s case could force OpenAI to unwind its for-profit operations and make its technology publicly available. The lawsuit also seeks to void Microsoft’s exclusive licensing agreements for GPT models, which form the foundation of products like Copilot and Azure AI services.

According to court documents, Musk is asking that any damages be awarded to OpenAI’s nonprofit arm rather than to him personally, positioning the case as a mission-driven effort rather than a financial grab.

Microsoft’s $13 Billion Investment Under Scrutiny

Microsoft has invested approximately $13 billion in OpenAI since 2019, securing exclusive rights to commercialize the company’s AI models. The partnership has been central to Microsoft’s AI strategy, powering everything from Windows Copilot to enterprise AI services.

The trial could reveal internal communications between OpenAI and Microsoft executives about the company’s transition to for-profit status. Satya Nadella’s testimony may shed light on Microsoft’s role in OpenAI’s corporate restructuring and the terms of their licensing agreements.

Industry observers note that unwinding the Microsoft partnership would be extraordinarily complex, given the deep technical and financial integration between the companies.

What This Means

The Musk-Altman trial represents more than a personal dispute between tech billionaires — it could establish legal precedent for how AI companies balance profit motives with stated missions to benefit humanity. The case arrives as OpenAI prepares for a highly anticipated IPO that could value the company at over $100 billion.

A ruling in Musk’s favor would send shockwaves through the AI industry, potentially forcing other companies to reconsider hybrid nonprofit-for-profit structures. The case also highlights tensions between AI safety advocates and commercial interests as the technology becomes increasingly valuable.

The trial’s outcome may influence regulatory approaches to AI governance, particularly regarding corporate structures for companies developing potentially transformative technologies.

FAQ

When will the Musk vs OpenAI trial conclude?
The trial timeline hasn’t been officially announced, but given the witness list and complexity of issues, it’s expected to continue for several weeks. The jury will deliver an advisory verdict to guide the judge’s final ruling.

What happens to ChatGPT if Musk wins the lawsuit?
If Musk’s lawsuit succeeds, OpenAI could be forced to make its AI models publicly available rather than exclusively licensing them to Microsoft. This could dramatically change how ChatGPT and other OpenAI products are distributed and monetized.

How much money is Musk seeking from OpenAI?
Musk is seeking up to $134 billion in damages from OpenAI and Microsoft combined. However, he has requested that any awarded damages go to OpenAI’s nonprofit organization rather than to him personally.