Elon Musk vs OpenAI Trial Explodes in Court as $150B Battle for AI Control Begins

(Elon Musk. Photo Credit: CBC)

When Elon Musk’s action against OpenAI began in federal court in Oakland on Monday, he withdrew his personal damages claim.

A nine-person jury was chosen the day before, and opening remarks got underway on Tuesday.

Musk is suing OpenAI, its president Greg Brockman, and its chief executive Sam Altman for alleged unjust enrichment and breach of charitable trust.

Jurors will start deliberating on liability on May 12, according to Judge Yvonne Gonzalez Rogers.

According to Musk, Altman and Brockman abandoned the company’s original goals and transformed it into a “wealth machine” for investors.

He wants $150 billion from Microsoft and OpenAI, with any money raised going to OpenAI’s nonprofit division. Additionally, he requested that Altman and Brockman be removed from their leadership roles and that the court mandate a return to a nonprofit format.

Musk claimed to have contributed roughly $38 million to the founding of OpenAI. He said that in 2019, a little more than a year after he departed the board, the company established a for-profit organization.

According to OpenAI, Musk was aware of the modification and approved of it. In 2023, he founded xAI, a competing AI corporation, and filed a lawsuit after failing to be appointed CEO.

Before deciding on remedies, nine jurors with backgrounds in both the public and private sectors will determine liability.

Satya Nadella, Altman, and Musk are anticipated to testify; Musk is probably going to do so this week.

In order to create artificial intelligence for the general population and take on businesses like Google, Musk and Altman co-founded OpenAI in 2015.

Microsoft denied any organizational coordination and claimed to have cooperated with OpenAI following Musk’s departure.

According to OpenAI, Musk’s assertions are related to his rival AI business. The company modified its organizational structure after launching ChatGPT.