NEW DELHI — Elon Musk and Sam Altman, once collaborators in creating OpenAI as a nonprofit guardrail against unchecked artificial intelligence, are set to face off in federal court as a jury considers whether the company’s leadership abandoned its original mission.
The trial, opening with jury selection in Oakland, California, centers on claims that OpenAI — founded in 2015 with early backing from Musk — shifted away from its goal of developing AI for the public good and moved toward a profit-driven model now valued at about $852 billion.
Musk filed the lawsuit in August 2024 against Altman and OpenAI co-founder Greg Brockman, accusing them of misleading him and steering the organization away from its founding principles.
The complaint alleges OpenAI’s leadership redirected the company toward a commercial model aligned with major investors, including Microsoft, without his knowledge.
OpenAI has rejected the allegations, calling the case unfounded and arguing it is driven by Musk’s competitive interests following the launch of his rival AI company, xAI, in 2023.
The lawsuit seeks changes to OpenAI’s governance structure, including removing Altman from its board, as well as financial remedies tied to the organization’s nonprofit arm.
Musk, who invested about $38 million in OpenAI between 2015 and 2017, initially sought damages exceeding $100 billion, though that amount has been reduced after pretrial rulings.
The case is expected to feature testimony from both Musk and Altman, highlighting the breakdown of a relationship that began with collaboration and has since turned into a high-profile dispute.
The proceedings will be overseen by U.S. District Judge Yvonne Gonzalez Rogers, with the jury serving in an advisory capacity.
Musk has argued the lawsuit is rooted in concerns over OpenAI’s departure from its original mission, while the company maintains its shift toward a commercial model was necessary to scale AI development and remain competitive.
Earlier this month, Musk withdrew fraud claims against OpenAI and its co-founders, narrowing the scope of the case ahead of trial. (Source: IANS)
