Two of Silicon Valley's most prominent billionaires are set to face off in a federal courtroom in Oakland, California, starting Monday, as a lawsuit between Elon Musk and Sam Altman goes to trial. The case centers on the founding mission of OpenAI, the artificial intelligence company they co-founded in 2015 as a non-profit organization.
Musk's Allegations
Musk accuses Altman, OpenAI, its president Greg Brockman, and Microsoft of breach of contract and unjust enrichment. He claims that Altman betrayed the original non-profit agreement by transforming OpenAI into a for-profit enterprise. Jury selection begins Monday morning, with opening arguments expected later this week. The trial is anticipated to last two to three weeks.
Internal communications from Musk and key OpenAI executives are expected to be presented. A roster of Silicon Valley luminaries, including Musk, Altman, and Microsoft CEO Satya Nadella, may testify.
OpenAI's Defense
OpenAI has strongly denied Musk's allegations, asserting that Musk agreed in 2017 that establishing a for-profit entity was a necessary step. The company claims Musk is "motivated by jealousy" and "regret for walking away." OpenAI also contests that Musk's $38 million contribution was a tax-deductible donation, not an investment, and does not entitle him to ownership.
High Stakes for OpenAI
The case carries enormous implications for OpenAI, which is expected to go public later this year at an estimated $1 trillion valuation. Musk is seeking a range of remedies, including the removal of Altman and Brockman, over $134 billion in damages to be redistributed to OpenAI's non-profit arm, and a reversal of the company's restructuring as a for-profit entity.
Background of the Feud
Altman, Musk, and several others launched OpenAI in 2015 as a non-profit, with Musk providing about $38 million. Their relationship soured around 2017, when Musk grew impatient with OpenAI's progress and attempted to gain more control, a move that failed. He left the board in 2018 and ceased funding.
After Musk's departure, OpenAI launched the wildly successful ChatGPT, raised billions from Microsoft, and became one of the world's most valuable private companies. Altman emerged as the face of the AI boom. In 2025, OpenAI received regulatory approval to restructure its main business into a for-profit corporation, though technically still overseen by the original non-profit.
Legal Claims
Musk's lawsuit alleges that Altman's dealmaking and maneuvering violate OpenAI's fundamental mission as a non-profit to benefit humanity, amounting to breach of contract. The suit also claims Altman and Brockman unjustly enriched themselves through their control of the company.
