Jury selection is underway in Oakland, California, for a high-profile legal showdown between tech titans Elon Musk and Sam Altman. The trial, presided over by Judge Yvonne Gonzalez Rogers, pits Musk, the world’s wealthiest individual and founder of xAI, against Altman, the CEO of OpenAI. Nine jurors will be empaneled, with no alternates, as the court delves into allegations that OpenAI, a leading artificial intelligence research lab, strayed from its original nonprofit mission.
Musk, a co-founder of OpenAI in 2015, initiated legal proceedings in 2024, accusing Altman and OpenAI President Greg Brockman of betraying their commitment to maintain the organization as a nonprofit entity dedicated to the common good. OpenAI has consistently refuted these claims, labeling the lawsuit as “baseless.” Musk’s departure from OpenAI’s board in 2018 preceded the establishment of his rival AI venture, xAI, which he later merged with SpaceX.
Throughout the legal process, Musk has pursued various forms of relief, including seeking the removal of Altman and Brockman from their leadership positions. In January, Musk’s legal team asserted potential damages reaching $134 billion in “wrongful gains,” though he has since indicated a preference for these funds to be channeled back into OpenAI’s charitable endeavors.
Judge Gonzalez Rogers has bifurcated the trial into two distinct phases: liability and remedies. The jury’s role will be confined to the liability phase, where they will determine if any wrongdoing occurred. Their verdict will be advisory, meaning the judge will ultimately render the final decision for both segments of the trial.
The liability phase is anticipated to conclude by mid-May. Should OpenAI be found liable, the remedies phase, slated to commence on May 18, will commence, allowing for arguments concerning appropriate damages and future actions.
Musk’s lawsuit contends that he was deliberately misled and “deceived” by OpenAI, Altman, and Brockman regarding their pledge to pursue a “safer, more open course than profit-driven tech giants.” He is seeking a reversal of OpenAI’s recent corporate restructuring, which solidified its nonprofit structure while establishing a for-profit subsidiary.
Of the initial 26 claims filed by Musk, only two remain: unjust enrichment and breach of charitable trust. Musk’s attorneys voluntarily dismissed fraud and constructive fraud claims prior to the trial, aiming to simplify the proceedings.
This landmark trial unfolds as Musk prepares for a potentially record-breaking initial public offering for SpaceX and as OpenAI is rumored to be gearing up for its own public debut later this year. Collectively, these two entities command a private market valuation exceeding $2 trillion, underscoring the immense economic stakes involved.
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