Musk-OpenAI Trial Opens in $134 Billion Suit Over Betrayal of Nonprofit Mission
Summary
- Elon Musk has filed a roughly $134 billion damages lawsuit against OpenAI and Sam Altman, and the case has now moved into full trial proceedings.
- The trial is focused on claims of breach of charitable trust and unjust enrichment, with the court planning by May to decide whether OpenAI breached its contract based on an advisory jury’s verdict.
- Musk said he would return any damages awarded to OpenAI’s charitable arm if he wins, while OpenAI said the case is a campaign by Musk to build his own power and wealth.
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Elon Musk’s damages lawsuit against OpenAI and Chief Executive Officer Sam Altman entered the trial stage on April 27.
Reuters and AFP reported that the federal court in Oakland, California, began proceedings with jury selection.
The court previously dismissed Musk’s fraud claim against OpenAI. It allowed the case to go forward on claims of breach of charitable trust and unjust enrichment.
Musk filed the roughly $134 billion lawsuit in January, alleging that OpenAI deceived the public by abandoning its founding mission as a nonprofit while partnering with Microsoft.
Musk co-founded OpenAI as a nonprofit with Altman in 2015 and invested several million dollars in the organization.
After clashing with Altman, Musk stepped down from OpenAI’s board in 2018. In 2023, he founded xAI, the developer of rival artificial intelligence chatbot Grok.
After Musk’s departure, Altman created a for-profit subsidiary and entered a partnership with Microsoft to raise funding as the cost of building data centers rose into the hundreds of billions of dollars.
Musk filed a lawsuit in December 2024 seeking to stop Altman from converting OpenAI into a for-profit company, accusing him of having lied from the start.
Musk argues that Altman promised when they co-founded OpenAI in 2015 that “the technology would belong to the world.” He alleges that Altman later created a for-profit subsidiary and partnered with Microsoft for private gain.
OpenAI, in an official statement on April 7, called the case a campaign by Musk to generate more power and wealth for himself.
The company also dismissed the lawsuit as harassment driven by vanity, jealousy and a desire to slow a competitor.
The court plans by May to make a final determination on whether OpenAI breached its contract, using the advisory jury’s verdict as a reference.
Musk said that if he wins the case, he will return any damages awarded to OpenAI’s charitable arm.
Park Sang-kyung, Hankyung.com reporter highseoul@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
