Elon Musk sues OpenAI for $150 billion damages

In Short:
– Elon Musk’s lawsuit against OpenAI and CEO Sam Altman is in jury selection, citing betrayal and internal conflict.
– Musk seeks $150 billion in damages, claiming OpenAI shifted from its nonprofit mission to corporate interests.

Elon Musk’s lawsuit against OpenAI and CEO Sam Altman is now in jury selection in Oakland, California. The case revolves around Musk’s claim of betrayal by OpenAI, with documents revealing an internal power struggle.

OpenAI lawsuit progresses

Musk is seeking $150 billion in damages, claiming OpenAI changed its nonprofit mission to corporate gain.

Prospective jurors expressed varied opinions on AI’s impact on their work and Musk’s motivations.

Opening statements are expected this Tuesday, revealing internal dynamics of OpenAI, a tech leader valued over $850 billion.

Musk alleges the defendants exploited his name and financial backing for personal gain, while OpenAI argues Musk’s motivation stems from a desire for control over the company.

Musk demands OpenAI revert to nonprofit status and leadership changes, while OpenAI maintains its discussions with Musk occurred during structural changes he supported.

Key figures, including Musk, Altman, and Microsoft CEO Satya Nadella are scheduled to testify.

The trial could impact OpenAI’s IPO plans and reflects on the competitive landscape of AI against rivals like Anthropic.

Musk’s xAI, integrated with SpaceX, faces challenges in competing against OpenAI’s advancements.

Court documents indicate Musk provided approximately $38 million to OpenAI before departing its board.

ELON MUSK: “The ‘Open’ in OpenAI is supposed to mean ‘open source’. And it was created as a nonprofit open source. And now it is a closed-source for maximum profit.”pic.twitter.com/6fqPBEW1ig

— Dima Zeniuk (@DimaZeniuk) April 27, 2026

In 2019, OpenAI restructured as a profit-oriented entity retaining responsibilities to its original mission.

The company further evolved into a public benefit corporation, balancing investor interests while adhering to its goals.

Musk’s legal team claims damages based on OpenAI’s valuation and contributions attributable to him.

Musk and Altman initially created OpenAI to advance AI technologies for humanity, amidst rivalries, including with Google.

Discontent from Musk reportedly arose in 2017 over the direction of OpenAI and tensions regarding leadership roles.

Musk once noted OpenAI’s trajectory implied failure compared to Google, a sentiment documented in emails.

OpenAI’s 2022 launch of ChatGPT redefined the AI landscape.