Musk vs. Altman: The Trial That Could Blow Up OpenAI’s $1 Trillion IPO

TLDR

• Jury selection begins Monday in Elon Musk’s lawsuit against OpenAI, Sam Altman, and Microsoft
• Musk claims OpenAI betrayed its nonprofit mission when it converted to a for-profit structure in 2019
• He is seeking $150 billion in damages, plus removal of Altman and Brockman from leadership
• Internal documents show early tensions between Musk and OpenAI founders over control and money
• The trial could disrupt OpenAI’s planned IPO, which could value the company at $1 trillion

Elon Musk’s lawsuit against OpenAI and Sam Altman is finally going to trial. Jury selection began Monday in the US District Court for the Northern District of California, with opening arguments expected Tuesday.

Musk co-founded OpenAI in 2015 alongside Altman and Greg Brockman. He claims he donated over $44 million to the company on the understanding it would stay a nonprofit. Court records show the figure was closer to $38 million between 2016 and 2020.

He says that when OpenAI converted to a for-profit entity in 2019, he was kept in the dark. He is now seeking $150 billion in damages from OpenAI and Microsoft, with proceeds going to OpenAI’s charitable arm.

Musk also wants OpenAI to revert to a nonprofit. He is asking for Altman and Brockman to be removed as officers, and for Altman to be removed from the board.

The witness list reads like a who’s who of tech. Elon Musk, Sam Altman, and Microsoft CEO Satya Nadella are all expected to testify in person. Shivon Zilis, a former OpenAI board member and mother to four of Musk’s children, is expected to be a key witness.

Musk emailed colleagues in January 2018 saying “OpenAI is on a path of certain failure relative to Google.” He left the board shortly after.

The For-Profit Dispute

OpenAI restructured as a for-profit unit in 2019, governed by the nonprofit. In October 2025, it became a public benefit corporation. Microsoft holds a 27% stake. OpenAI’s nonprofit arm received a stake valued at $130 billion.

OpenAI’s most recent funding round valued the company at $852 billion.

OpenAI counters that Musk knew about the for-profit plans and actually wanted to merge OpenAI with Tesla and become CEO himself. When Altman and Brockman refused, OpenAI says, Musk walked away and started his own AI company, xAI.

Microsoft denies it colluded with OpenAI and says it only partnered with the company after Musk left.

What’s at Stake

The trial could affect OpenAI’s IPO plans, which could value the company at $1 trillion. A string of damaging disclosures may complicate that path.

The jury’s verdict will be advisory only. The final decision rests with US District Judge Yvonne Gonzalez Rogers. If defendants are found liable, she could order OpenAI to reverse its for-profit transition.

The case is expected to run through mid-May.

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