A yearslong legal dispute between Elon Musk and OpenAI CEO Sam Altman heads to trial Monday in Oakland, California, marking a dramatic courtroom confrontation between two prominent figures in the technology industry.
Musk filed a $134 billion lawsuit claiming that OpenAI, Altman, and company president Greg Brockman violated a commitment to maintain the artificial intelligence lab as a nonprofit in perpetuity. OpenAI has since restructured to operate a for-profit subsidiary and is now valued at over $850 billion.
Musk and Altman cofounded OpenAI in 2015 alongside other technology entrepreneurs, driven by shared concerns about artificial intelligence's potential power and a desire to advance the technology in ways that would benefit humanity. The relationship between the two has since deteriorated into public rivalry.
In 2023, Musk launched xAI as a competitor to OpenAI. He subsequently merged xAI with SpaceX in a transaction valuing the combined entity at $1.25 trillion. xAI, now part of SpaceX, has filed for an initial public offering.
OpenAI is rumored to be considering an IPO itself. The timing of the trial coincides with significant financial stakes for both parties, with billions of dollars potentially affected by the outcome.
Over the past several years, Musk's legal theories against OpenAI have encompassed breach of contract, unfair business practices, and false advertising claims. Both Musk and Altman are expected to testify during the trial, which begins April 27.