Musk v. Altman
Two of the founders of OpenAI are now in federal court fighting over what the company was supposed to be — and what it's allowed to become.
A decade after Elon Musk and Sam Altman helped found OpenAI as a nonprofit research lab, the two men are facing each other across a federal courtroom in Oakland. Musk alleges that Altman and OpenAI president Greg Brockman betrayed the lab's founding charitable mission by spinning its core technology into a for-profit business. OpenAI says Musk's lawsuit is a baseless attempt to hobble a competitor he failed to control.
Jury selection wrapped on April 27, 2026, with nine jurors seated in an advisory capacity. The trial is being heard in equity rather than at law, which means Judge Gonzalez Rogers — not the jury — will issue the binding ruling. A decision is expected by mid-May. The proceedings are scheduled to run roughly two to three weeks, with both Musk and Altman expected to testify.
The case at a glance
- Plaintiff
- Elon Musk
- Defendants
- OpenAI, Sam Altman, Greg Brockman
- Filed
- 2024 (originally state court, refiled federal)
- Court
- U.S. District Court, Northern District of California (Oakland)
- Judge
- Yvonne Gonzalez Rogers
- Damages sought
- Up to $134 billion in alleged "wrongful gains," directed to OpenAI's nonprofit rather than Musk personally
- Other relief
- Removal of Altman and Brockman; unwinding of OpenAI's for-profit conversion
- Verdict
- Advisory jury; binding decision by judge expected mid-May 2026
How we got here
Musk, Altman, Brockman and others co-found OpenAI as a nonprofit dedicated to developing artificial intelligence "to benefit humanity." Musk becomes the largest individual donor, contributing roughly $44 million by court filings (other reports cite about $38 million).
After internal disputes over leadership and direction, Musk leaves OpenAI's board. The company cites potential conflicts with Tesla's own AI work.
OpenAI creates a for-profit subsidiary that operates under the nonprofit parent. The structure is intended to attract investment for the compute and chips required to build cutting-edge AI.
ChatGPT launches and goes viral. OpenAI's valuation climbs into the hundreds of billions, and Microsoft becomes a major commercial partner.
Musk founds xAI as a competitor to OpenAI.
Musk sues OpenAI, Altman and Brockman, alleging they reneged on commitments to keep the lab nonprofit. The case is later refiled in federal court in Oakland.
OpenAI restructures, cementing its form as a public benefit corporation under the nonprofit parent. Musk asks the court to unwind the conversion.
Jury selection. Nine jurors are seated to serve in an advisory capacity.
Opening arguments begin in Oakland.
The two sides
Musk's claims
Musk alleges he was "manipulated" and "deceived" into bankrolling OpenAI on the explicit understanding that any artificial general intelligence developed there would be open and shared with the world.
His complaint covers breach of contract, breach of fiduciary duty, false advertising, and unfair business practices.
He has asked the court to remove Altman and Brockman from their roles, unwind the for-profit conversion, and direct any damages to OpenAI's nonprofit arm rather than to him personally.
OpenAI's defense
OpenAI calls the lawsuit "baseless" and characterizes it as "a jealous bid to derail a competitor" — pointing to Musk's launch of xAI in 2023.
The company argues Musk knew early on that significant outside investment would be necessary, and was part of internal discussions about creating a for-profit arm.
OpenAI notes that its nonprofit still exists and retains the upside from the for-profit subsidiary; nonprofits are permitted to earn profits, only not distribute them to shareholders.
The legal question underneath
Beyond the personal feud, the case turns on a genuinely unsettled question of nonprofit law: when a donor gives money to a charity, what rights does that donor retain over how the charity later evolves? Musk's theory frames the case as a breach of charitable trust. Some legal scholars are skeptical that the framing maps cleanly onto how nonprofit law actually works, noting that OpenAI's nonprofit parent still exists and still controls the for-profit subsidiary.
California's attorney general — who would normally be the party with clearest standing to enforce a charitable trust — has declined to join Musk's suit, saying the office did not see how the action serves the public interest.
Who's expected to testify
- Elon Musk — Plaintiff. His testimony about what he was promised in 2015 is central to the case.
- Sam Altman — Defendant; OpenAI CEO.
- Greg Brockman — Defendant; OpenAI president.
- Satya Nadella — Microsoft CEO; relevant to OpenAI's commercial partnerships.
- Ilya Sutskever — Former OpenAI chief scientist and co-founder.
- Mira Murati — Former OpenAI CTO.
What a ruling could change
If Musk prevails, the most far-reaching remedies on the table would force OpenAI to unwind its for-profit structure and remove its current leadership. Even short of that, an adverse ruling — or a prolonged appeal — would cloud OpenAI's path to a public offering. Reporting suggests an IPO previously rumored for 2027 could slip to 2028 or later if the case extends through appellate review.
If OpenAI prevails, the company is positioned to continue its current trajectory: a roughly $500 billion–to–$1 trillion-valued enterprise, with a public benefit corporation operating under a nonprofit parent, and a path toward a stock listing.
Sources
This page is compiled from contemporaneous reporting by major outlets. Specific figures, dates, and quotations above are drawn from:
- CNBC — "Judge in Musk v. Altman seats nine-person jury" (April 27, 2026) and live trial coverage.
- NPR — "Musk vs. Altman: Tech CEOs head to court over the fate of OpenAI" (April 27, 2026).
- MIT Technology Review — "Elon Musk and Sam Altman are going to court over OpenAI's future" (April 27, 2026).
- The Washington Post — "Elon Musk's court battle with Sam Altman exposes Silicon Valley secrets" (April 23, 2026).
- Fortune — "Musk vs. Altman: a trial almost no one thinks Musk can win" (April 27, 2026).
This site is independent and not affiliated with OpenAI, xAI, Tesla, SpaceX, or any party to the litigation.