Musk vs OpenAI trial begins in $134bn lawsuit
A major legal battle between Elon Musk and OpenAI has entered the trial phase, with Musk seeking roughly $134 billion in damages over allegations that the company abandoned its original nonprofit mission.
The case began proceedings in federal court in Oakland, California, where jury selection is now underway. The lawsuit focuses on claims of breach of charitable trust and unjust enrichment, after the court previously dismissed a fraud allegation, News.Az reports, citing foreign media.
Musk, who co-founded OpenAI in 2015 alongside CEO Sam Altman, argues that the organization misled the public by shifting away from its founding principles. He claims OpenAI was originally intended to develop artificial intelligence “for the benefit of humanity,” but later moved toward a for-profit structure and entered a deep partnership with Microsoft.
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After stepping down from OpenAI’s board in 2018 following internal disagreements, Musk later launched his own AI company, xAI, which developed the chatbot Grok.
The lawsuit, filed in early 2024, also sought to block OpenAI’s transition into a for-profit model, accusing its leadership of betraying its original mission. Musk alleges that the company’s shift was driven by commercial interests rather than public benefit.
OpenAI has rejected the claims, describing the lawsuit as an attempt by Musk to slow down a competitor and expand his own influence in the rapidly growing AI industry.
The company says its restructuring was necessary to secure the massive funding required for advanced AI development, including partnerships that support the construction of high-cost data infrastructure.
The court is expected to weigh the advisory jury’s findings in May as it considers whether OpenAI breached its contractual obligations tied to its original nonprofit structure.
Musk has said that if he wins the case, any awarded damages would be directed back to OpenAI’s charitable arm. The trial is expected to become one of the most closely watched legal disputes in the global technology sector, with major implications for the future of artificial intelligence governance.
By Aysel Mammadzada
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