Elon Musk and Sam Altman Allegedly Involved in Manipulative Behavior During Court Proceedings, According to a Judge
In a dramatic turn of events, tech mogul Elon Musk is locked in a legal battle with his former collaborator, Sam Altman, and OpenAI. The lawsuit, filed in a federal court in Northern California, alleges fraud and breach of contract, among other charges, related to OpenAI's shift from its nonprofit mission to a profit-driven model through a close partnership with Microsoft.
The lawsuit, which is currently ongoing, has seen several key developments. In a December blog post, Musk claimed that when he was still with OpenAI, he wanted it to become a for-profit entity with himself at the helm. However, he alleges that OpenAI abandoned its nonprofit, public-benefit origins in favour of maximising profits, engaging in an unregulated merger or self-dealing arrangement with Microsoft, and violating contract provisions by prioritising profits over its stated mission and legal obligations under nonprofit law. Musk seeks monetary damages and a judgment to void the licensing agreement between OpenAI and Microsoft.
In response, OpenAI and Altman have filed an initial broad set of 55 affirmative defenses. However, a federal judge has deemed this excessive and has ordered the defenses to be trimmed to 39. The judge has also criticised both sides for overlitigation and "gamesmanship" tactics that waste judicial resources.
Notably, Musk dropped a similar lawsuit against OpenAI earlier last year. Around the same time, Altman had a long one-on-one meeting with former President Donald Trump, who publicly praised Altman's AI infrastructure efforts, which Musk has been critical of.
The lawsuit claims that Altman built a secretive network of for-profit OpenAI affiliates, took control of the non-profit's board, engaged in self-dealing, and diverted the non-profit's talent and tech for financial gain. This has led to a corporate structure now worth an estimated $100 billion.
Jury selection for the case is scheduled to begin on March 30, 2026, in Oakland, California. Judge Yvonne Gonzalez Rogers has granted Musk's motion to strike several of Altman's defenses, ruling that some were "irrelevant, redundant, insufficient, or immaterial."
The rivalry between Musk and Altman has extended into the world of politics. Musk helped start OpenAI with Altman and others in 2015, but he left in 2018 after disagreements about the company's direction. Since then, Musk has launched his own AI for-profit company, xAI.
As the trial approaches, both parties are preparing for a legal showdown that could shape the future of AI development and nonprofit governance. Attorneys representing Altman did not immediately respond to a request for comment regarding the case.
- The ongoing lawsuit between Elon Musk, Sam Altman, and OpenAI involves claims of the shifting focus of OpenAI from a nonprofit mission to a profit-driven model through partnerships like the one with Microsoft.
- The legal battle between Musk and OpenAI includes allegations of fraud, breach of contract, and violations of contract provisions by OpenAI, as well as claims of self-dealing and prioritizing profits over their stated mission and legal obligations.
- The dispute between Musk and Altman has also extended into the world of politics, with Musk starting his own for-profit AI company, xAI, after disagreements about the direction of OpenAI.
- As the trial draws near, the case could significantly influence the future development of AI and governance practices within nonprofit organizations.
