The high-profile lawsuit between former allies turned adversaries, Elon Musk and Sam Altman, has formally begun with the jury selection process at a federal court in Oakland, California. Presided over by Judge Yvonne Gonzalez Rogers, the trial commenced this Monday, pitting the world's wealthiest individual, Musk, against the CEO of OpenAI, Sam Altman. According to court documents filed in March, the proceedings aim to select nine primary jurors with no alternates. Journalists from CNBC are present in the courtroom providing live coverage. Musk co-founded OpenAI in 2015 and filed a lawsuit against the company, Altman, and President Greg Brockman in 2024. Musk accuses the defendants of violating founding promises: abandoning the organization's non-profit nature and deviating from its public-benefit mission. OpenAI has repeatedly countered, stating that Musk's claims are baseless. Musk left OpenAI's board in 2018; five years later, he founded competing AI firm xAI and merged it with SpaceX earlier this year. Among the remedies sought in the lawsuit, Musk has requested the removal of Altman and Brockman from all their positions at OpenAI. His attorneys argued in January that the defendants had realized unjust gains amounting to $134 billion, which Musk is entitled to claim. Subsequently, Musk proposed that any awarded damages be reinvested into OpenAI's public-benefit framework. Judge Gonzalez Rogers has bifurcated the trial into two primary phases. The first phase is the liability stage, determining whether the defendants committed violations. The second phase is the remedial stage, deciding the amount of damages and subsequent corrective actions. The jury will participate only in the first, liability phase, and its verdict will be advisory. The judge will issue the final rulings for both stages. On Monday, the judge indicated that the liability phase is expected to conclude by May 21st. At the start of the trial, the judge welcomed the prospective jurors, providing a light-hearted overview of the case background and schedule. She then questioned them individually, including inquiries about their personal views on Musk and the artificial intelligence industry. Altman and Brockman were present in court on Monday to face the lawsuit. Musk's complaint alleges that OpenAI, Altman, and Brockman engaged in a prolonged campaign of deliberate inducement and intentional deception. He claims they initially promised to build an AI institution that would be safer and more open than profit-driven tech giants but have since completely reneged on this agreement. Musk is asking the court to reverse OpenAI's recent restructuring, which established a core model of a "non-profit parent controlling a for-profit subsidiary." In the months leading up to the trial, Musk and Altman have been publicly trading accusations. On Monday, Musk posted on his X platform, stating directly: "The facts are clear: con man Sam Altman and Greg Brockman stole a public-benefit corporation." In response, OpenAI's official account posted a rebuttal: "We look forward to presenting the facts and the law in court. This lawsuit is meritless, driven by jealousy, and intended to hinder a competitor." Musk initially filed 26 claims in the 2024 lawsuit but has since pared them down to just two: unjust enrichment and breach of fiduciary duty for a public charity. Court documents show that, to streamline the case and ensure trial efficiency, Musk's lawyers voluntarily dropped claims of fraud and constructive fraud. The trial's commencement coincides with a critical juncture for both parties. Musk's SpaceX is nearing a potential public listing, which could set a new global record for IPO fundraising. OpenAI also plans to enter the public markets later this year. Combined, the two companies boast private market valuations exceeding $2 trillion.
Comments