Musk vs. OpenAI: Legal Battle Begins

Opening arguments in the legal fight between Elon Musk and OpenAI began on April 27, 2026, in a U.S. court, launching a closely watched trial over the company’s direction and governance.

Musk, who helped found OpenAI, filed the lawsuit in 2024. He alleges the organization moved away from its original non-profit purpose of developing artificial intelligence for the benefit of humanity and instead shifted toward profit-driven priorities under the leadership of Sam Altman and Greg Brockman.

Musk’s claims and the remedies he is seeking

In the case, Musk is asking the court to remove Altman and Brockman from their roles. He is also seeking an order that would stop OpenAI from operating as a public benefit corporation.

The lawsuit further seeks damages of up to $150 billion for the non-profit entity, according to the claims described in court.

OpenAI’s response and its characterization of the lawsuit

OpenAI has rejected Musk’s allegations. The company has described the case as a “baseless and jealous bid to derail a competitor,” and has argued that the lawsuit is intended to strengthen Musk’s own artificial intelligence efforts.

OpenAI pointed to Musk’s AI ventures, including xAI and its Grok product, as part of its contention about his motivations.

Altman and Microsoft arguments focus on timing and investment

During opening arguments, attorneys representing Altman and Microsoft said Musk’s claims came too late and were driven by OpenAI’s success after he left. Microsoft is a major investor in OpenAI.

Microsoft’s counsel told the court that its investment supplied key resources for OpenAI’s research and development. The lawyer also said there were no conditions that would have barred such investments.

First witness and what remains uncertain

Elon Musk is scheduled to be the first witness to testify. The trial is expected to examine competing accounts of OpenAI’s mission, leadership decisions, and the role of outside funding.

It remains unclear how the court will weigh Musk’s requested remedies, including leadership changes, the company’s corporate form, and the scale of damages sought for the non-profit entity.