The biggest lawsuit in AI history is no longer coming — it’s happening right now.
Elon Musk, Sam Altman, and Greg Brockman are seated in an Oakland, California courtroom as the Elon Musk vs. OpenAI trial gets underway — and the outcome could reshape the entire AI industry.
Here’s everything you need to know.
The TLDR: How We Got Here
Musk co-founded OpenAI a decade ago as a nonprofit meant to develop advanced AI for the benefit of humanity, free of profit motives.
In 2018, he stepped down from the board. Musk split from the company after an acrimonious power struggle — and depending on who you ask, he was pushing to merge OpenAI with Tesla or take outright control of the organization.
After he left, OpenAI made its move. A year after his exit, OpenAI created a for-profit subsidiary to raise more cash, and in 2025 the company further evolved into a for-profit public benefit corporation. Microsoft poured in billions and took a significant stake.
Elon — the co-founder who came up with the name, recruited the early team, and provided the initial funding — was left out entirely.
That’s the switcheroo. And that’s what this trial is about.
What’s Actually Being Argued in Court
Musk’s lawyers argue that Altman and others profited illegally through the for-profit conversion, enriching themselves and breaching the very principles on which the charity was founded.
His lawsuit is seeking $130 billion in damages from OpenAI and wants the company to return to a nonprofit structure and remove Altman and Brockman from its board.
Microsoft is also in the crosshairs. Musk accuses Microsoft of aiding and abetting OpenAI’s alleged misconduct, arguing that Microsoft enabled the breach of charitable trust through its investments and partnerships.
OpenAI’s defense? Their attorney argued that Musk had actually pushed for a for-profit structure himself but walked away when he couldn’t get total control — and that this lawsuit is really about hobbling a competitor to his own AI company, xAI.
What Musk Said on the Stand
Musk testified that he would have started a nonprofit to develop safe AI “with or without Sam Altman and Greg Brockman,” but decided to team up with them because their interests aligned.
“I came up with the idea, the name, recruited the key people, taught them everything I know, providing the initial funding,” he said on the stand.
On AI risk, Musk didn’t hold back. “I have extreme concerns over AI,” he told the jury, noting the technology could make everyone prosperous — “but it could also kill us all.”
What Happens If Elon Wins?
This is where it gets serious. There are three possible outcomes if the verdict goes Musk’s way:
1. Massive financial damages Musk is seeking $130 billion, arguing that OpenAI’s leaders wrongfully profited from his charitable contributions. A win could mean one of the largest damage awards in corporate history.
2. OpenAI forced back to nonprofit status Musk is seeking a rollback of the for-profit conversion entirely. If a judge orders it, OpenAI’s planned IPO — expected to be a blockbuster — could be stopped cold. The company would have to restructure from scratch.
3. Altman and Brockman removed Musk is also seeking Altman’s removal as a director of OpenAI’s nonprofit board, and removal of both Altman and Brockman as officers of the for-profit company. A leadership wipeout at the world’s most prominent AI company would send shockwaves through the entire industry.
Why Elon Is Motivated to Push This All the Way
Let’s be real about the incentives here. If Musk wins, his own xAI company could set back a major rival and potentially leap ahead in the AI race. xAI is currently pushing toward a trillion-dollar valuation and a public offering of its own. A wounded or restructured OpenAI clears a significant amount of runway.
OpenAI’s attorney made exactly this argument to the jury — that Musk brought the lawsuit to hobble OpenAI after founding competitor xAI.
Both things can be true: Musk may have a legitimate legal grievance and a massive competitive incentive to pursue it.
What Happens Next
In addition to further testimony from Musk, Altman is expected to testify, along with Brockman, Microsoft CEO Satya Nadella, and several key researchers and engineers involved in OpenAI’s founding.
This trial will run for weeks. Follow it closely — because whatever the verdict, AI will not look the same on the other side of it.
Do you think Elon wins? And if he does — what happens to OpenAI? Drop your prediction in the comments.