A pivotal trial that could shape the governance of artificial intelligence begins Tuesday in California, as Elon Musk and Sam Altman face off over OpenAI’s shift to a for-profit model.
Opening statements in Musk’s civil lawsuit against OpenAI and Altman will be heard in federal court after a jury of nine was selected on Monday.
Yvonne Gonzalez Rogers, U.S. District Judge, has indicated she expects jurors to begin deliberations on liability by 12 May.
Musk alleges that Altman and OpenAI president Greg Brockman abandoned the company’s founding mission to develop artificial intelligence for the benefit of humanity, instead turning it into what he describes as a “wealth machine” for investors.
He is seeking $150 billion in damages from OpenAI and its major backer Microsoft, with any award reportedly directed to OpenAI’s charitable arm. Musk is also asking for the organisation to revert to nonprofit status and for Altman and Brockman to be removed from leadership roles.
Musk, who helped co-found OpenAI in 2015 and reportedly contributed around $38 million in early funding, claims the company shifted towards a for-profit structure in 2019 after he left its board.
OpenAI disputes this, arguing Musk was aware of and supported the transition and only filed suit after failing to become chief executive and launching his own AI company.
The case is expected to feature testimony from Musk, Altman and Satya Nadella, and could provide rare insight into the early internal dynamics of one of the world’s most influential AI companies.
OpenAI argues Musk has attempted to undermine its growth while building his own competing AI venture, xAI, which it says trails OpenAI in usage and scale.
The dispute comes as OpenAI continues to expand rapidly, facing competition from firms including Anthropic and investing heavily in computing infrastructure. Reuters has reported the company could eventually pursue an IPO valuing it at up to $1 trillion.
Originally founded as a nonprofit research lab, OpenAI has since evolved into a hybrid structure involving a public benefit corporation model, with both nonprofit and investor stakes.
The outcome of the trial could influence not only OpenAI’s future structure but also broader expectations around governance, accountability and commercialisation in the fast-growing AI sector.
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Start your day informed with the AnewZ Morning Brief. Here are the top stories for 29 June, covering the latest developments you need to know.
A tanker reported being struck by a projectile in the Strait of Hormuz on Saturday, Britain's maritime security agency said, after the United States and Iran each launched strikes in the worst escalation since they signed their interim peace deal.
Fourteen people were killed on Sunday after a helicopter belonging to Saudi oil giant Aramco crashed in Ras Tanura, according to Saudi state media.
Eleven people were killed when a small plane carrying skydivers crashed near Nancy in eastern France on Sunday, local officials said.
Rescue teams raced on Sunday to find more survivors of the two powerful earthquakes that struck Venezuela this week, with signs of life bringing occasional relief to a grim quest to whittle down a list of tens of thousands missing.
The United States and Iran have agreed to halt strikes against each other, in a potential breakthrough after weeks of escalating tensions. The two sides are expected to meet in Doha on Tuesday to address their dispute over the Strait of Hormuz.
American technology company Snap has launched its first augmented-reality (AR) glasses for consumers, marking a major push into wearable computing as tech firms race to redefine personal devices in the AI era.
The Canadian government has introduced a digital safety bill that would ban children under the age of 16 from using social media, unless platforms meet specific safety standards.
NASA has named three American astronauts and one Italian astronaut to fly on its Artemis III mission, a major orbital test planned for late next year that will evaluate lunar landing vehicles developed by SpaceX and Blue Origin.
China will send an astronaut to its space station on Sunday for a one-year mission, the longest duration for the country so far. The mission will help study long-duration human physiology in space as China works toward a crewed Moon landing by 2030.
Anxiety over artificial intelligence is hardening among young workers as executives promote faster adoption and companies point to automation in fresh job cuts.
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