Musk vs. Altman: Opening statements begin in high-stakes federal trial

The long-standing digital feud between Elon Musk and OpenAI CEO Sam Altman has moved from social media jibes to a federal courtroom in Oakland, California. 

The month long-trial, overseen by Judge Yvonne Gonzalez Rogers, centers on Musk’s allegations of fraud and breach of contract regarding the origins and mission of OpenAI. 

“Musk and Altman are so big, so larger than life, and so unrelatable,” says University of San Diego professor Sarah Federman, who specializes in conflict resolution. “That's what makes them so delicious to watch as they clash.”

Musk alleges Altman and co-founder Greg Brockman manipulated him into donating $40 million to start OpenAI as a non-profit, only to illegally pivot to a for-profit model to enrich themselves and Microsoft. 

Musk argues the company abandoned its founding goal of developing artificial general intelligence (AGI) for the benefit of humanity, focusing instead on maximizing profits. 

Musk is seeking billions in wrongfully gained to be returned to the non-profit arm and is calling for the ouster of Sam Altman.

“If Musk wins, it could result in the defeat of a key competitor in the race to AGI," said law professor Rose Chan Loui, the executive director of the Lowell Milken Center for Philanthropy and Nonprofits at UCLA.

“Whoever wins that race will have a lot of power.”

OpenAI maintains that Musk’s lawsuit is fueled by “jealousy and regret” after he walked away from the company in 2018. They contend that Musk previously agreed that a for-profit entity was necessary but left after his own attempt to take "absolute control” of the startup was rejected. 

The trial comes as OpenAI’s valuation nears a reported $850 billion, while Musk’s own AI startup, xAI works to catch up. Legal experts suggest the outcome could determine who holds the most power in the race toward AGI-technology that surpasses human intelligence. 

At present, the Musk vs Altman trial is transpiring as the public has only just started to grapple with AI’s complicated entry into our lives. The trial could offer new insights into their ambition and intent for the development of a technology now used by a growing subset of the global population.