Musk and Sam Altman set for courtroom clash

Elon Musk and Sam Altman -- once allies in building what they envisioned as a nonprofit safeguard against runaway AI -- were set to face each other in a federal courtroom on Monday as a jury begins to decide whether Altman betrayed that founding promise by steering OpenAI toward a $852 billion commercial empire, as per reports.

The trial, which opens with jury selection in Oakland, California, centres on allegations that OpenAI -- co-founded in 2015 with early funding from Musk -- strayed from its original mission of developing AI for the public good and instead pivoted toward a profit-driven model now valued at around $852 billion.

Musk, the world’s richest person, filed the lawsuit in August 2024 against Altman, OpenAI chief executive, and senior executive Greg Brockman, accusing them of misleading him and abandoning the organisation’s founding principles.

The complaint alleges that the leadership shifted OpenAI’s direction behind his back, transforming it into a commercial enterprise aligned with major investors, including Microsoft.

OpenAI has dismissed the claims, describing the case as unfounded and motivated by Musk’s competitive interests, particularly his launch of rival AI company xAI in 2023.

The lawsuit seeks governance changes at OpenAI, including Altman’s removal from its board, as well as financial remedies directed toward the company’s nonprofit arm.

Musk, who invested about $38 million in OpenAI between 2015 and 2017, initially sought damages exceeding $100 billion, though that figure has since been scaled back following pre-trial rulings.

The case is expected to feature testimony from two of the most prominent and polarising figures in the tech industry, whose relationship has shifted from collaboration to confrontation since OpenAI’s early days.

The proceedings will be overseen by US District Judge Yvonne Gonzalez Rogers, with the jury serving in an advisory role.

Musk has argued that the case is rooted in concerns over OpenAI’s departure from its original mission, while the company maintains that its shift was necessary to scale AI development and remain competitive in a rapidly evolving global industry.

Earlier in April, Musk reportedly withdrew fraud claims against OpenAI and its co-founders Sam Altman and Greg Brockman, narrowing the scope of his lawsuit on the eve of trial.