On Monday, a high-profile legal confrontation between Elon Musk and OpenAI (OPAI.PVT) will enter the courtrooms of the US District Court for the Northern District of California, with jury selection commencing ahead of opening arguments set for Tuesday.
This case features a formidable list of witnesses from the tech world, including Musk himself, OpenAI CEO Sam Altman, and Microsoft CEO Satya Nadella. Musk may take the stand as early as Tuesday, depending on the strategy employed by the plaintiffs.
The implications of this trial could resonate throughout the artificial intelligence (AI) sector, especially if the court rules in Musk’s favour, which may jeopardise OpenAI’s plans for an initial public offering (IPO).
In his lawsuit, Musk alleges that Altman, OpenAI President Greg Brockman, and other executives misrepresented the company’s intentions regarding its transition from a nonprofit organisation to a for-profit model. Microsoft, a key investor in OpenAI, has also been named as a defendant.
Shifting OpenAI to for-profit status would empower the company to issue shares, thereby attracting significant external investment to foster the development and operation of advanced AI systems.
Musk, one of OpenAI’s co-founders, claims to have donated over $44 million to the organisation in its formative years under the understanding that it would remain non-commercial. He argues that Altman and Brockman’s move to a for-profit arrangement represents a betrayal of that trust.
In response, OpenAI contends that Musk was supportive of the transition but sought to merge OpenAI with Tesla (TSLA) and take up the role of CEO. According to OpenAI, when Musk’s proposal was declined, he chose to sever ties and establish his own competing AI venture, recently acquiring xAI through his company SpaceX (SPAX.PVT) in a pre-IPO deal.
OpenAI reset its structure as a public benefit corporation (PBC) in October 2025. During this transition, Microsoft acquired a 27% interest in the PBC, while OpenAI’s nonprofit arm received shares valued at roughly $130 billion. The latest fundraising round has pegged the company at a valuation of $85 billion, raising $2 billion.
The legal proceedings are anticipated to continue until mid-May, with the jury’s opinion being advisory and the final ruling resting with US District Judge Yvonne Gonzalez Rogers. Should the jury find the defendants liable, a potential remedy from Judge Rogers could include reinstating OpenAI’s nonprofit status.
The contentious history between Musk and Altman has often played out publicly. Musk has taken to social media to criticise Altman and had even expressed interest in buying OpenAI in February 2025, proposing a staggering offer of $97.4 billion.
