Musk vs. OpenAI: Legal Battle Begins

S. District Court for the Northern District of California. The case also involves OpenAI CEO Sam Altman and centers on Musk’s claims about how the organization changed course from its original structure. Officials involved in the matter have framed the dispute as one that could shape expectations across the artificial intelligence sector and influence how investors view OpenAI’s future public offering plans.

Musk, identified as a co-founder of OpenAI, alleges the organization moved away from its initial non-profit mission. He says he provided more than $44 million to OpenAI based on an understanding that it would remain a non-profit entity. In the lawsuit, Musk alleges that Altman and OpenAI President Greg Brockman misled him during the shift toward a for-profit structure.

Microsoft, described as a major investor in OpenAI, is also named as a defendant. The dispute is unfolding against the backdrop of OpenAI’s corporate change in October 2025, when the company transitioned to a public benefit corporation. That status is central to the arguments about governance, mission, and how the organization balances public-interest commitments with commercial objectives.

OpenAI has pushed back on Musk’s account. The company has said Musk knew about the move toward a for-profit model, but that he sought to merge OpenAI with Tesla and take the CEO position. Those competing narratives are expected to be tested through testimony and documents as the trial proceeds.

The witness list includes Musk, Altman, and Microsoft CEO Satya Nadella, underscoring the case’s significance for both corporate leadership and the broader technology investment landscape. Jury selection began Monday, and opening arguments were anticipated on Tuesday. The jury’s verdict will be advisory, with U.S. District Judge Yvonne Gonzalez Rogers set to make the final determination.

Possible remedies, if the defendants are found liable, could include undoing OpenAI’s transition to a for-profit structure. Such an outcome would be closely watched by companies and investors tracking how AI developers structure themselves, raise capital, and define fiduciary duties. OpenAI’s most recent valuation was $85.2 billion, a figure that highlights the financial stakes tied to governance decisions and any potential changes ordered by the court.