A long-simmering feud is set to erupt in federal court as the Elon Musk and Sam Altman OpenAI trial begins Monday in Northern California, pitting two tech titans against each other in a case that could reshape the future of artificial intelligence.

The legal clash between Elon Musk and Sam Altman—once allies, now rivals—centers on allegations that the AI company abandoned its founding mission in pursuit of profit.

Lawsuit Challenges OpenAI’s Transformation

In a sweeping lawsuit seeking up to $134 billion in damages, Musk claims that OpenAI, along with Altman and president Greg Brockman, broke a promise to remain a nonprofit organization.

Since its founding in 2015, OpenAI has evolved into a hybrid structure, maintaining nonprofit oversight while operating a for-profit arm now valued at more than $850 billion.

Musk argues that shift betrays the original vision—like a compass suddenly pointing toward profit instead of public good.

From Founding Partners to Fierce Rivals

Musk and Altman were among the original group of technologists who launched OpenAI, united by concerns over AI’s power and its potential risks to humanity.

Their relationship fractured in 2018 when Musk left the board following disagreements over the company’s direction, including a failed attempt to merge OpenAI with Tesla.

Since then, Musk has launched his own AI venture, xAI, and recently merged it with SpaceX in a deal valuing the combined entity at $1.25 trillion, as he prepares for a potential record-breaking IPO.

Trial Begins in Oakland Federal Court

Jury selection is scheduled to begin Monday at a federal courthouse in Oakland, near San Francisco, where OpenAI is headquartered.

The case will be overseen by Yvonne Gonzalez Rogers, who has presided over major tech disputes, including the high-profile case between Epic Games and Apple.

Nine jurors will be seated, with no alternates. The trial will unfold in two phases: first determining liability, then addressing remedies if wrongdoing is found.

What Musk Wants From the Court

If successful, Musk is not seeking personal financial gain. Instead, he has asked the court to return what he describes as “ill-gotten gains” to OpenAI’s nonprofit arm.

He is also pushing to remove Altman and Brockman from leadership roles and to reverse the company’s for-profit restructuring.

Legal Claims Narrow as Trial Approaches

Of the 26 claims initially filed in 2024, only four remain: unjust enrichment, fraud, constructive fraud, and breach of charitable trust.

Musk’s legal team is seeking to drop two of those claims—fraud and constructive fraud—before trial in an effort to streamline proceedings.

Meanwhile, OpenAI has dismissed the lawsuit as baseless, calling it a campaign driven by rivalry and competition.

Broader Legal Battles and Industry Stakes

This is not Musk’s only legal action against OpenAI. In 2025, X, formerly Twitter, along with xAI, filed a separate lawsuit against OpenAI and Microsoft, alleging anticompetitive behavior. A hearing in that case is set for May in Texas.

An earlier lawsuit accusing OpenAI of stealing trade secrets was dismissed by a federal judge in California in February.

A War of Words Escalates

The courtroom drama follows months of public sparring between Musk and Altman.

Musk has criticized Altman in blunt terms on social media, while Altman has openly welcomed the chance to question Musk under oath—turning their dispute into a spectacle as much as a legal battle.

Trial Timeline and What Comes Next

The liability phase is expected to run through mid-May, with court sessions held Monday through Thursday mornings.

Attorneys for both Musk and OpenAI have been allocated roughly 20 hours each to present their cases, while Microsoft will have five hours.

If OpenAI is found liable, the case will move to a remedies phase beginning May 18, where the court will determine damages and next steps.

However, Judge Gonzalez Rogers noted that if the jury finds the lawsuit was filed outside the statute of limitations, the court may rule in favor of the defendants.

A Defining Moment for AI’s Future

As the Elon Musk and Sam Altman OpenAI trial unfolds, it represents more than a personal feud—it is a high-stakes test of how innovation, ethics, and profit intersect in the rapidly evolving AI industry.

Like a fault line beneath Silicon Valley, the outcome could reshape not just one company, but the direction of artificial intelligence itself.