Musk lawsuit over OpenAI nonprofit claims goes to trial

Summary

A trial will test Musk’s claim that OpenAI abandoned its nonprofit mission as it expanded its for-profit business.

Why this matters

The case could shape how one of the most prominent artificial intelligence companies is governed and whether its nonprofit commitments remain enforceable as AI investment grows. It also highlights broader questions about who benefits from advanced AI systems.

Elon Musk’s lawsuit accusing OpenAI of abandoning its nonprofit mission is set to go to trial Monday with jury selection.

The case in a courtroom across the bay from San Francisco centers on OpenAI’s shift from a nonprofit lab to a company with a for-profit arm. Musk, an OpenAI co-founder and early backer, argues he was misled about the startup’s mission.

Court filings said Sam Altman persuaded Musk in 2015 to support OpenAI as a nonprofit lab whose technology “would belong to the world.” Musk invested millions in the lab before leaving.

OpenAI later created a commercial subsidiary, saying it needed vast sums to build the data centers required for its technology. Microsoft invested billions of dollars in OpenAI, and Chief Executive Satya Nadella is among those expected to testify. Musk and Altman are also on the witness list.

OpenAI said in court filings that its split with Musk stemmed from his effort to gain control, not from its nonprofit status. In a recent post on X, the company said: “This case has always been about Elon generating more power and more money for what he wants. His lawsuit remains nothing more than a harassment campaign that’s driven by ego, jealousy and a desire to slow down a competitor.”

OpenAI also said Musk called for a six-month pause in advanced artificial intelligence development days after entering the sector in 2023.

Judge Yvonne Gonzalez Rogers is expected by mid-May to decide, with guidance from an advisory jury, whether OpenAI broke a promise to Musk. Musk asked that OpenAI return to a purely nonprofit structure and that Altman and co-founder Greg Brockman, the company’s president, be removed.

Musk had sought as much as $134 billion in damages but later said he would not personally benefit and would direct any award to the OpenAI nonprofit. The judge reserved the right to determine remedies without the jury.

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