On Monday, jury selection wrapped in federal court in Oakland, California, setting the stage for a closely watched legal battle as Elon Musk intensifies accusations that OpenAI abandoned its nonprofit roots for private gain.

Musk Escalates Claims Against OpenAI Leadership

Musk, one of OpenAI’s original co-founders, is seeking roughly $150 billion in damages from OpenAI and Microsoft Corp (NASDAQ:MSFT), alleging that CEO Sam Altman and President Greg Brockman betrayed the organization’s founding mission to develop artificial intelligence for humanity’s benefit.

In a post on X, Musk framed the case as a broader fight over charitable governance.

“Do you want to set legal precedent in the United States that it is ok to loot a charity?” Musk wrote. “If so, you undermine all charitable giving in the United States forever.”

He also criticized Altman and Brockman, claiming, “Scam Altman and Greg Stockman stole a charity. Full stop.”

OpenAI Rejects Musk’s Allegations

Meanwhile, OpenAI has called the lawsuit baseless and rooted in competitive motives tied to Musk’s own AI company, xAI.

“We can’t wait to make our case in court where both the truth and the law are on our side,” OpenAI said in a statement posted to X, adding that Musk’s legal campaign is an effort “to derail a competitor.”

The company argues Musk was aware of structural discussions before his 2018 departure and says his frustrations were tied partly to control, including reported ambitions to lead OpenAI himself.

Why The Trial Could Reshape AI Governance

Opening statements are expected on Tuesday, with the case likely to influence not only OpenAI’s corporate future but also legal standards surrounding nonprofit-to-for-profit transitions in the rapidly evolving AI sector.

At its core, the trial could determine whether OpenAI’s transformation was a necessary business evolution — or, as Musk alleges, a historic betrayal of public trust.

In March, OpenAI reached an $850 billion valuation while completing a new $10 billion venture capital funding round.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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