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Tech billionaires clash in federal court over OpenAI's future
The long-simmering dispute between Elon Musk and OpenAI CEO Sam Altman moves from social media jabs to a California courtroom Tuesday, where a month-long trial will examine allegations of broken promises and betrayal in the race to artificial general intelligence (AGI).
Musk's allegations: Broken mission and lost millions
Musk, who co-founded OpenAI as a nonprofit in 2015, claims Altman and the company abandoned its original humanitarian mission to prioritize profits for Microsoft. He alleges he was swindled out of millions and seeks billions in damages to restore OpenAI's nonprofit arm. His lawsuit also demands Altman's removal from leadership.
In a 2018 email cited in court filings, Musk wrote, "Either go do something on your own or continue with OpenAI as a nonprofit. I will no longer fund OpenAI until you have made a firm commitment to stay or I'm just being a fool who is essentially providing free funding for you to create a startup."
OpenAI's defense: Jealousy and competitive sabotage
OpenAI counters that Musk's lawsuit stems from regret over leaving the company and jealousy of its success. The company argues that shifting to a for-profit model in 2017 was necessary to advance AGI responsibly and that Musk rejected their offer to remain involved unless he gained "absolute control" as CEO.
"Musk is trying to derail one of his key rivals in the AGI race," OpenAI stated in its legal response. The company also dismissed Musk's 2023 offer to buy OpenAI for $97.4 billion-far below its $157 billion valuation at the time-as evidence of ulterior motives.
Key witnesses and legal drama
Both Musk and Altman are expected to testify, alongside high-profile figures like Microsoft CEO Satya Nadella and former OpenAI scientists Mira Murati and Ilya Sutskever. Judge Yvonne Gonzalez Rogers, who presided over the Apple-Epic Games antitrust case, has warned that neither billionaire will receive special treatment despite their wealth or celebrity.
Pre-trial motions revealed colorful details, including a ruling to exclude evidence about Musk's use of "rhino ket" (a Silicon Valley term for ketamine) and revelations about his legal team-one lawyer moonlights as a clown, while another is a Hollywood producer.
Stakes beyond the courtroom
The trial arrives as public debate intensifies over AI's rapid development. Musk, who once called for a pause in AI research, now leads xAI, a competitor to OpenAI's ChatGPT. His startup, Grok, lags behind but reflects his deep investment in the AGI race, recently bolstered by xAI's acquisition by SpaceX ahead of its planned IPO.
"If Musk wins, it could result in the defeat of a key competitor in the race to AGI. Whoever wins that race will have a lot of power."
Rose Chan Loui, Executive Director, Lowell Milken Center for Philanthropy and Nonprofits at UCLA
Critics question Musk's motives, noting his history of attempted takeovers. "Musk has tried to take over OpenAI multiple times. He's been spurned," said Columbia Law School professor Dorothy Lund. "Even the judge has called his motives suspect."
What's next
A nine-person jury, sworn in Monday, will decide whether OpenAI violated its nonprofit charter and whether Musk is entitled to damages. The trial is expected to last four weeks, with testimony from tech leaders, scientists, and former OpenAI board members, including Shivon Zilis, mother of four of Musk's children.
As University of San Diego professor Sarah Federman noted, the spectacle mirrors a clash of titans: "Musk and Altman are so big, so larger than life... That's what makes them so delicious to watch as they clash." Yet the outcome may shape not just their legacies but the trajectory of AI development for years to come.
