Musk Takes OpenAI to Trial in High-Stakes Dispute Over AI Future

Jury selection begins as lawsuit raises questions over AI ethics and control

April 25, 2026 at 9:30 AM
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SAN FRANCISCO, United States: Elon Musk has entered a major courtroom battle against OpenAI, with jury selection set to begin Monday in a case that could reshape debates around the future of artificial intelligence.

The dispute pits Musk against the company he once supported, now led by chief executive Sam Altman, amid growing competition in the rapidly expanding AI sector.

Musk accuses OpenAI of abandoning its original non-profit mission, while the company insists the lawsuit is driven by rivalry.

Musk, who invested about $38 million in OpenAI in its early years, claims he was misled about the organisation’s commitment to remaining a non-profit entity. Court documents reveal that Altman had assured Musk in 2017 that he remained “enthusiastic about the non-profit structure” of the venture.

However, OpenAI later established a commercial arm to support the vast financial demands of AI development, attracting billions in investment, including significant backing from Microsoft.

Mission under scrutiny

The case highlights a broader debate about whether artificial intelligence should serve public interests or commercial ambitions.

OpenAI, now valued at hundreds of billions of dollars, has emerged as a leading player, with its ChatGPT platform competing directly with Musk’s xAI ventures.

Musk is seeking up to $134 billion in damages and has called for leadership changes, including the removal of Altman and co-founder Greg Brockman.

He also wants OpenAI to sever ties with Microsoft and return to a purely non-profit structure.

During preliminary hearings, US Judge Yvonne Gonzalez Rogers questioned the scale of damages, noting Musk’s team appeared to be “pulling numbers out of the air”.

OpenAI has strongly rejected the claims, stating: “This case has always been about Elon generating more power and more money for what he wants,” adding the lawsuit is “nothing more than a harassment campaign that’s driven by ego, jealousy and a desire to slow down a competitor.”

The trial is expected to run through May, with the jury tasked with determining whether OpenAI breached commitments made to its early backers.

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