Musk v. Altman heads to court next week. Here’s what’s at stake

The years-long legal fight between the world’s richest man Elon Musk and OpenAI CEO Sam Altman heads to court in Northern California on Monday in a dramatic showdown between two of the tech industry’s highest-profile names.

with 134 billion dollars caseMusk claimed that OpenAI, Altman and the company’s president, Greg Brockman, had reneged on their vow to keep the AI ​​laboratory a nonprofit indefinitely. OpenAI has since been restructured to operate a for-profit subsidiary and is now valued at over $850 billion.

Musk and Altman were once close friends and were among a group of technologists who founded OpenAI in 2015. common concern On the potential power of artificial intelligence and the need to develop it to benefit humanity.

Now they are enemies of the people and bitter rivals; Musk founded xAI in 2023 as a rival to OpenAI and recently merged it with SpaceX in a deal that values ​​the combined entity at $1.25 trillion. The trial comes as Musk prepares to take SpaceX public in what is likely to be a record IPO.

OpenAI is aiming to launch potentially in the fourth quarter, as CNBC previously reported. In a document distributed to potential investors earlier this year, OpenAI described the ongoing litigation with Musk as a potential risk to its business.

The startup has repeatedly dismissed Musk’s lawsuit as “baseless” and called it a “campaign of harassment fueled by ego, jealousy, and a desire to slow down a competitor.” a post on x In early April.

The war of words has been going on for months.

“Con-man Altman lies as easily as he breathes,” Musk wrote in August. a post on xWhich is part of xAI.

“I’m really excited to swear in Elon in a few months, it’s Christmas in April!” Altman said. he wrote in x In February.

Musk v. Jury selection in the Altman case begins Monday at the federal courthouse in Oakland, just over the Bay Bridge from San Francisco, where OpenAI is headquartered. If successful, Musk said he wants the court to return all “ill-gotten gains.” OpenAI’s non-profit organizationNot to him personally. It also aims to remove Altman and Brockman from their roles and “unwind OpenAI’s for-profit transformation and restructuring.”

This isn’t the only lawsuit Musk has filed against OpenAI. X, formerly Twitter, with xAI A lawsuit was filed against OpenAI and Apple in 2025 for alleged anti-competitive conduct. The hearing in this case is scheduled for May in Texas. And in February, a federal judge in California dismissed a separate lawsuit by xAI accusing OpenAI of stealing its trade secrets.

The Musk-Altman dispute dates back to 2018, when Musk left OpenAI’s board following a series of disagreements with Altman and Brockman over the company’s direction; this included an unsuccessful effort to incorporate the startup. Tesla’sMusk’s electric vehicle company. Following Musk’s departure, OpenAI created a for-profit subsidiary that allowed it to more easily raise outside investment.

OpenAI briefly evaluated the following plans: transition to a for-profit company In 2024, this would take control of the nonprofit and keep it as a separate arm. But after facing pressure from civic leaders and former employees, including Musk, he changed course. The company completed its recapitalization in October, strengthening its structure as a nonprofit organization with a controlling interest in its nonprofit business.

Musk filed a lawsuit OpenAI, Altman and Brockman claimed in 2024, that the company had been “meticulously manipulated” and “deceived” by promises that it would “pave a safer, clearer path from the profit-driven tech giants.”

But the scope of Musk’s claims and his desired outcomes have changed significantly in recent months.

One January applicationMusk’s lawyers said he should receive up to $134 billion in damages from OpenAI and MicrosoftHe is a long-time supporter of OpenAI and is also named as a defendant in the lawsuit. Microsoft is accused of aiding and abetting the alleged abuse of OpenAI.

Of the 26 allegations Musk made against OpenAI, Altman and Brockman in November 2024 four remain: unjust enrichment, fraud, constructive fraud and breach of charitable trust. Musk’s lawyers are calling deny two claimsPre-trial fraud and constructive fraud for the purpose of “facilitating the case,” according to a filing.

OpenAI’s lawyers on Wednesday called Musk’s actions “escape tactics.”

“The trial begins in five days, but Plaintiff still refuses to state clearly what claims he will pursue and what remedies he will seek.” a filing.

The case is presided over by Judge Yvonne Gonzalez Rogers, who was appointed to the U.S. District Court for the Northern District of California in 2011 by former President Barack Obama. Gonzalez Rogers has handled numerous high-profile cases involving technology companies, including their antitrust case with Epic Games. Apple.

There will be nine jury members and there will be no substitute members. March application.

Gonzalez Rogers preferred Divide the essay into two parts: A liability phase to decide whether there was any wrongdoing and a compensation phase to determine appropriate damages and next steps. The jury will weigh in only during the liability phase, and its verdict will be advisory, meaning Gonzalez Rogers will make the final decision on both parts of the case.

The liability phase of the trial is expected to last until mid-May, and the court will be in session from 8:30 a.m. to 1:40 p.m. PT daily, Monday through Thursday.

Opening statements will be made after the jury selection. Gonzalez Rogers gave Musk and OpenAI lawyers a total of about 20 hours to present their case. According to Microsoft it will take five hours a filing.

All three parties applied list of witnesses that they can call. The names of Musk, Altman, Brockman and Microsoft CEO Satya Nadella were announced.

If OpenAI is found liable, Gonzalez Rogers will hear arguments regarding the resolution phase. planned It will start on May 18.

“However, if the jury finds that Musk did not file his lawsuit within the statute of limitations, it is highly likely that the Court will accept that finding and direct the verdict to the defendants,” Gonzalez Rogers wrote.

CNBC will be in the courtroom starting Monday. Follow the latest news here.

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