Musk v/s Altman: AI's biggest feud enters courtroom
28 Apr 2026

A high-profile legal battle between tech moguls Elon Musk and Sam Altman is about to begin in a US court.

The trial, overseen by Judge Yvonne Gonzalez Rogers in Oakland, California, will be the end of a years-long fallout between the two OpenAI co-founders.

The case could change the future of OpenAI and possibly the entire artificial intelligence (AI) industry.

Musk's claims against Altman
Legal claims

Musk, who contributed around $38 million to OpenAI in its early days, alleges that the company has strayed from its original mission.

He claims it has become more profit-oriented and deceived him and other early supporters.

Musk is seeking damages of up to $134 billion (though he said any compensation would go to OpenAI's nonprofit arm) and the removal of Altman and President Greg Brockman from their positions.

OpenAI's defense
Rebuttal

OpenAI has strongly denied Musk's allegations, claiming they contradict his own previous statements.

The company argues that Musk had once backed a for-profit shift and even considered integrating OpenAI into Tesla.

It also contends that Musk's contribution was a donation, not an investment, and accuses him of using litigation to sabotage a competitor due to his involvement with rival AI venture xAI.

Implications for Microsoft's stake in OpenAI
Market implications

The trial comes at a pivotal moment as OpenAI, estimated to be worth around $852 billion, is likely to go public in the coming months. Any changes to its structure or leadership could affect those plans.

Microsoft, which has a major stake in the company after multi-billion-dollar investments, also has a direct interest in the outcome of this trial.

Trial timeline and witness list
Court hearings

The trial will revisit OpenAI's early years with internal emails, messages, and disagreements leading to Musk's exit in 2018.

Both Musk and Altman are expected to testify along with potential witnesses such as Microsoft CEO Satya Nadella and former OpenAI chief scientist Ilya Sutskever.

The proceedings are divided into two phases: first, determining whether Musk's remaining claims—primarily breach of charitable trust and unjust enrichment—hold; second, deciding on remedies if the court rules in his favor.

Broader impact on AI industry
Industry impact

Beyond the legal arguments, this trial highlights a larger conflict in the AI industry: how to balance public-interest goals with the enormous capital requirements of cutting-edge technology.

OpenAI argues that its for-profit structure is necessary to fund artificial general intelligence (AGI) development, while Musk contends this shift undermines the original mission.

Even if Musk loses, this case could bring unprecedented transparency into OpenAI's operations and potentially alter the competitive landscape in the AI industry.