Musk Lawsuit Against OpenAI, Altman Threatens $1 Trillion IPO

TLDR

• Jury selection is underway in Elon Musk’s legal case targeting OpenAI, Sam Altman, and Microsoft.
• Musk alleges OpenAI abandoned its nonprofit founding principles by shifting to a for-profit model in 2019.
• He is pursuing $150 billion in damages and the ouster of Altman and Brockman from their leadership positions.
• Documents from the case indicate early friction between Musk and the OpenAI founders regarding control and finances.
• The lawsuit’s outcome has the potential to derail OpenAI’s anticipated initial public offering, which might value the firm at $1 trillion.

---

(SeaPRwire) –   The lawsuit filed by Elon Musk against OpenAI and Sam Altman has now reached the trial phase. The process of selecting a jury commenced on Monday in a California federal court, with opening statements anticipated to follow on Tuesday.

MUSK DROPS FRAUD CLAIMS AGAINST ALTMAN – TRIAL SHIFTS FROM JURY TO JUDGE

Elon Musk’s lawsuit against Altman and OpenAI had four claims going to trial:

1. Breach of charitable trust
2. Unjust enrichment
3. Promissory fraud
4. Constructive fraud

On Friday, Elon Musk’s lawyers… pic.twitter.com/hFeTFfqYrh

— NIK (@ns123abc) April 25, 2026

Musk was a co-founder of OpenAI in 2015 with Sam Altman and Greg Brockman. He asserts that he contributed more than $44 million based on the belief the organization would remain a nonprofit, though court filings indicate the amount was approximately $38 million donated between 2016 and 2020.

Musk states he was not informed when OpenAI transitioned to a for-profit entity in 2019. His lawsuit demands $150 billion in damages from OpenAI and Microsoft, with any awarded funds directed to OpenAI’s charitable division.

Additionally, Musk is calling for OpenAI to return to its nonprofit status. He has requested the removal of Altman and Brockman as officers and for Altman to be taken off the board.

The list of witnesses features prominent figures from the technology sector. Elon Musk, Sam Altman, and Microsoft’s CEO Satya Nadella are all scheduled to provide live testimony. Shivon Zilis, a former OpenAI board member who is the mother of four of Musk’s children, is anticipated to be a significant witness.

Internal case documents have exposed early disagreements among OpenAI’s founding team. A 2017 diary entry from Brockman reads: “This is the only chance we have to get out from Elon. Is he the ‘glorious leader’ that I would pick?”

In a January 2018 email, Musk told colleagues that “OpenAI is on a path of certain failure relative to Google.” He departed from the board not long after.

The For-Profit Dispute

OpenAI was reorganized into a for-profit division in 2019, which remained under the control of the original nonprofit. The company transitioned to a public benefit corporation in October 2025. Microsoft owns a 27% share, and OpenAI’s nonprofit arm was granted a stake worth $130 billion.

The company’s latest funding round established a valuation of $852 billion.

OpenAI has responded by claiming Musk was aware of the plans to become for-profit and had instead proposed merging OpenAI with Tesla under his own leadership as CEO. According to OpenAI, when Altman and Brockman rejected this idea, Musk left and founded his own AI venture, xAI.

Microsoft has refuted allegations of collusion, stating its partnership with OpenAI began only after Musk’s departure.

What’s at Stake

The trial poses a threat to OpenAI’s ambitions for an initial public offering that could result in a $1 trillion valuation. A series of negative revelations during the proceedings could hinder that goal.

The jury’s decision will serve as a recommendation. The ultimate ruling lies with US District Judge Yvonne Gonzalez Rogers, who possesses the authority to mandate that OpenAI undo its transition to a for-profit company if the defendants are found liable.

The case is projected to conclude around the middle of May.