A high-stakes legal battle has commenced between billionaire entrepreneur Elon Musk and artificial intelligence firm OpenAI over claims that the company deviated from its founding non-profit mission.
The case, to be heard in a courtroom near San Francisco, pits Musk against a company he once supported but now rivals in the rapidly expanding artificial intelligence sector.
At the centre of the dispute is OpenAI’s transformation from a non-profit organisation into a commercially driven entity, a move Musk claims contradicts its original mission of developing AI for the benefit of humanity.
Court documents indicate that OpenAI’s Chief Executive Officer, Sam Altman, had in 2015 persuaded Musk to support the creation of a non-profit AI research lab whose innovations would be widely accessible.
Musk reportedly invested about $38m in the venture before severing ties with the organisation.
However, OpenAI has since evolved into a major player in the AI industry, with an estimated valuation of $852bn and backing from tech giant Microsoft. The company is also said to be preparing for a public listing.
The presiding judge has indicated that the jury could reach a decision by late May on whether OpenAI violated any commitments made to Musk or acted within its rights in pursuing commercial growth.
In his suit, Musk alleges that he was misled regarding the company’s long-term direction, citing internal communications in which Altman reaffirmed support for the non-profit structure shortly before the creation of a for-profit subsidiary.
He is seeking up to $134bn in damages, the removal of Altman and OpenAI President Greg Brockman from leadership, and an order compelling the company to revert to a fully non-profit model. He is also asking the court to mandate a separation between OpenAI and Microsoft.
Among those expected to testify is Microsoft Chief Executive Officer, Satya Nadella.
OpenAI, however, has dismissed the lawsuit as baseless, arguing that its split from Musk stemmed from disagreements over control rather than its organisational structure.
In a statement, the company accused Musk of attempting to stifle competition and advance personal interests.
“This case is about Elon seeking greater power and financial gain,” the company said, describing the suit as a campaign driven by rivalry.
The trial is expected to draw global attention, as it raises broader questions about the governance of artificial intelligence and whether the technology should prioritise public good or commercial interests.
