OpenAI Faces $134B Lawsuit as Musk-Altman Trial Begins April 27

Elon Musk and OpenAI CEO Sam Altman will face off in federal court starting April 27th, with jury selection beginning for a high-stakes trial that could reshape the AI company’s future. Musk is seeking up to $134 billion in damages and demanding the removal of both Altman and president Greg Brockman from their leadership roles.

The lawsuit centers on Musk’s allegation that OpenAI abandoned its founding nonprofit mission to develop AI for humanity’s benefit, instead prioritizing profits through its for-profit subsidiary structure. OpenAI responded that “this lawsuit has always been a baseless and jealous bid to derail a competitor” aimed at boosting Musk’s own AI ventures including xAI and Grok.

https://x.com/OpenAINewsroom/status/2048776645142872368

The Core Legal Claims

Musk, who co-founded OpenAI with Altman in 2015 before leaving in 2018, alleges that Altman and Brockman deceived him into providing early funding by promising to maintain the company as a nonprofit. According to court filings, Musk invested tens of millions of dollars based on OpenAI’s original mission statement to ensure artificial general intelligence benefits all humanity.

The lawsuit targets not only OpenAI’s current leadership but also seeks to prevent the company from operating as a public benefit corporation. Musk has requested that any awarded damages go to OpenAI’s nonprofit arm rather than to him personally, positioning the case as a mission-driven rather than financial dispute.

Trial Proceedings and Key Witnesses

Nine jurors will deliver an advisory verdict to guide the judge’s final decision on Musk’s claims. The witness list includes high-profile tech executives who shaped OpenAI’s evolution from nonprofit to its current hybrid structure.

Expected testimony will come from former OpenAI chief scientist Ilya Sutskever, former CTO Mira Murati, and Microsoft CEO Satya Nadella. According to MIT Technology Review, the trial will expose “cringey texts, raw diary entries, and endless scheming behind the founding and growth of OpenAI.”

Musk, Altman, and Brockman will all take the stand during proceedings expected to last several weeks in Northern California federal court.

Musk Amplifies Pre-Trial Criticism

As the trial began, Musk used his X platform to amplify criticism of Altman, boosting a post from New Yorker journalist Ronan Farrow promoting an investigation into Altman’s business practices. Musk also reposted the story with the comment: “Calling him ‘Scam’ Altman is accurate.”

The timing of Musk’s social media activity, coinciding with jury selection, demonstrates the public relations battle running parallel to the legal proceedings. WIRED verified that Musk paid to boost Farrow’s post through X’s promotion feature, though the boosted content did not carry standard advertising labels.

OpenAI’s Product Momentum Amid Legal Uncertainty

Despite the legal challenges, OpenAI continues advancing its technology offerings. The company recently launched ChatGPT Images 2.0, featuring the new `gpt-image-2` model that can generate complex multilingual text within images, create detailed infographics, and produce realistic user interface mockups.

According to VentureBeat, the update has been quietly available on LM Arena AI testing platform under the codename “duct tape” for several weeks before its official rollout to all ChatGPT tiers. The new model can generate floor plans, character models from multiple angles, and apply advanced features to user-uploaded imagery.

Industry speculation also surrounds potential announcements about ChatGPT 5.5, which some reports suggest Altman has internally characterized as “the last major milestone before AGI,” though OpenAI has not confirmed these claims.

What This Means

The trial outcome could fundamentally alter OpenAI’s corporate structure and leadership at a critical juncture for the AI industry. If Musk succeeds, OpenAI might be forced to revert to nonprofit status, potentially disrupting its planned IPO and Microsoft partnership worth billions.

The case also sets precedent for how founding mission statements bind AI companies as they scale and attract investment. With AGI development accelerating across the industry, the trial’s resolution will influence how other AI startups structure their governance and funding models.

Regardless of the legal outcome, the public airing of internal communications and strategic decisions will provide unprecedented insight into the power dynamics and philosophical tensions driving AI development at the world’s most influential AI company.

FAQ

When does the Musk vs. OpenAI trial start?
Jury selection begins April 27th in Northern California federal court, with the full trial expected to last several weeks.

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

What could happen to Sam Altman if Musk wins?
Musk is asking the court to remove both Sam Altman and Greg Brockman from their leadership roles at OpenAI and to restore the company’s nonprofit status.