On Friday, US District Judge Yvonne Gonzalez Rogers approved Musk’s request to “streamline” the case, allowing only two claims to move forward out of the 26 listed in his complaint from November 2024.
Jury selection is scheduled for Monday in federal court in Oakland, California. Musk contends that the artificial intelligence startup deviated from its original mission to serve humanity as a nonprofit when it accepted billions in funding from Microsoft Corp. and planned a transition to a for-profit model.
Musk aims to recover up to $134 billion in damages, which he requests be allocated to OpenAI’s charitable arm if he prevails at trial. He also seeks a court order to reinstate the firm’s status as a nonprofit research organization and wants a judge to mandate the removal of Altman and Brockman from their positions. Altman holds the title of chief executive officer, while Brockman is the president.
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Two weeks ago, OpenAI informed the judge that Musk’s proposed remedies were unexpected and accused him of launching a “legal ambush” just before the trial.
OpenAI, Altman, Brockman, and Microsoft have all denied any wrongdoing, asserting that Musk’s allegations are unfounded harassment.
The trial will be conducted in two phases. In the first phase, a jury will examine Musk’s claims, which now center on two issues: unjust enrichment and breach of charitable trust.
The jury will deliver an “advisory verdict” that will not be binding on Gonzalez Rogers, who will have the final say on whether Musk has substantiated his claims.
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In the second phase, Gonzalez Rogers will evaluate arguments regarding the remedies Musk is pursuing and will issue a decision.
Musk co-founded OpenAI with Altman and others in 2015, though the former collaborators have turned into adversaries in recent years. Musk departed OpenAI’s board in 2018 and co-founded the competing AI company, xAI, in 2023.
In February, OpenAI turned down Musk’s unsolicited offer to acquire the nonprofit controlling the company for $97.4 billion. Later, the organization finalized its plan for restructuring as a for-profit entity, allowing it to raise additional funds and potentially explore a public offering.
The case is Musk v. Altman, 4:24-cv-04722, US District Court, Northern District of California (Oakland).
