Elon Musk sues OpenAI in court

Jury selection began Monday in Oakland in Elon Musk’s lawsuit against OpenAI, Sam Altman, Greg Brockman and Microsoft over OpenAI’s shift away from its nonprofit roots. (reuters.com) U.S. District Judge Yvonne Gonzalez Rogers is overseeing the federal civil trial, with opening arguments expected Tuesday in the Northern District of California. (reuters.com) On April 24, Gonzalez Rogers dismissed Musk’s fraud and constructive-fraud claims at his request, leaving breach of charitable trust and unjust enrichment for trial. (reuters.com) Musk says OpenAI’s leaders promised to build artificial intelligence for humanity as a nonprofit and then formed a for-profit entity in 2019 after he left the board in 2018. (reuters.com) OpenAI says Musk knew about the restructuring talks, pushed to become chief executive and wanted to merge OpenAI into Tesla before cutting off funding. (reuters.com) (finance.yahoo.com) Reuters reported Musk is seeking $150 billion in damages for OpenAI’s charitable arm, plus an order forcing OpenAI back to nonprofit status and removing Altman and Brockman from leadership. (reuters.com) The case now reaches OpenAI after its October 2025 conversion to a public benefit corporation, a structure that can issue shares while still naming a public-purpose goal. (finance.yahoo.com) Yahoo Finance reported Microsoft received a 27% stake in that public benefit corporation, while OpenAI’s nonprofit foundation received a stake valued at about $130 billion. (finance.yahoo.com) Reuters reported the trial could complicate OpenAI’s preparation for a potential initial public offering that it has discussed at a valuation of up to $1 trillion. (reuters.com) The court fight also opened a new window into OpenAI’s internal history, including Greg Brockman diary entries and other private documents disclosed in pretrial filings. (reuters.com) A day before jury selection, OpenAI published new operating principles centered on democratization, empowerment, universal prosperity, resilience and adaptability. (openai.com) The trial is expected to run into mid-May, with the jury’s verdict advisory and the final remedies left to Gonzalez Rogers. (finance.yahoo.com)