A high-profile legal battle between Elon Musk and OpenAI’s Sam Altman is now underway in a federal court in Oakland, California, marking one of the most closely watched technology trials of 2026.
The case centers on Musk’s allegations that OpenAI deviated from its original mission as a nonprofit organization dedicated to developing artificial intelligence for the benefit of humanity.
Musk, who was among the co-founders of OpenAI and an early financial backer, argues that the company shifted away from its founding principles when it restructured into a “capped-profit” model and entered into a deep commercial partnership with Microsoft. He claims this transformation prioritized corporate interests and investor returns over openness and safety in artificial intelligence development.
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OpenAI, led by CEO Sam Altman, has rejected these claims. The company maintains that its restructuring was necessary to secure the vast computing resources required to build advanced AI systems. It also argues that Musk was aware of and engaged in early discussions around scaling funding and infrastructure needs before his departure from the organization.
The trial opened this week with jury selection, which has already drawn significant attention. Courtroom observers report that potential jurors have expressed a range of views about Musk, with many indicating skepticism toward him, though most also stated they could remain impartial. The selection process is seen as critical, given the complexity of the case and the prominence of the individuals involved.
Altman appeared in court during jury selection proceedings, while Musk was not present on the opening day. The trial is expected to feature testimony from both figures, along with other senior executives and former employees connected to OpenAI’s early development and governance structure.
Legal filings and investigative reporting referenced in court have also highlighted internal disagreements within OpenAI over leadership decisions, safety oversight, and organizational direction. These materials have been cited by Musk’s legal team as evidence supporting claims of mismanagement and deviation from the company’s original mission, though their interpretation is disputed and not legally established as fact. OpenAI, however, disputes these interpretations and argues that its evolution reflects the realities of scaling frontier artificial intelligence research.
The trial is expected to last several weeks, with both sides presenting extensive documentary evidence and witness testimony. At its core, the case raises broader questions about how AI companies should balance rapid technological development with governance, safety concerns, and accountability to founding principles.
Outside the courtroom, the case has sparked wider debate across the technology sector about the future structure of advanced AI organizations and the role of private capital in shaping systems that may have global societal impact.
As the trial is set to start, it looks like Musk is losing it on social media. The tech billionaire recently took to X, where he posted a rant about Altman and how he stole the charity that was supposed to be OpenAI. Musk’s post said:
“Scam Altman and Greg Stockman stole a charity. Full stop.
Greg got tens of billions of stock for himself and Scam got dozens of OpenAI side deals with a piece of the action for himself, Y Combinator style. After this lawsuit, Scam will also be awarded tens of billions in stock directly.
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The fundamental question is simply this:
Do you want to set legal precedent in the United States that it is ok to loot a charity? If so, you undermine all charitable giving in the United States forever.
I could have started OpenAI as a for-profit corporation. Instead, I started it, funded it, recruited critical talent and taught them everything I know about how to make a startup successful FOR THE PUBLIC GOOD.
Then they stole the charity.”