Elon Musk vs Sam Altman: High-stakes ‘billionaires versus billionaires’ trial over OpenAI’s ‘betrayal’ begins in California

CALIFORNIA: A federal courtroom in California is set to host a legal confrontation so extraordinary that, according to a report by NBC News, “not even artificial intelligence could make it up”. Jury selection commences this Monday in a civil trial featuring Tesla CEO Elon Musk suing OpenAI chief Sam Altman.

The proceedings, described as “one part business dispute and one part highly personal grudge match”, carry significant implications that “could determine the future of red-hot startup OpenAI and its signature app, ChatGPT”.

Spanning an expected four weeks, the trial will feature a high-profile “cast of prominent tech executives set to testify.” NBC News reports that witnesses likely to take the stand include Musk and Altman, alongside potential testimony from Microsoft CEO Satya Nadella and various current and former OpenAI board members.

Presiding Judge Yvonne Gonzalez Rogers previously characterised the legal battle as “billionaires versus billionaires” during a preliminary hearing held just across the bay from OpenAI’s headquarters.

The litigation centres on the evolution of OpenAI from a “nonprofit research center founded in 2015 into a for-profit behemoth,” which now commands billions of USD in external funding. While Altman and Musk served as founding co-chairs, the organisation underwent a restructuring in October, where the for-profit arm remains accountable to a “nonprofit foundation”.

Musk, who has since launched his own competitor, xAI, contends this shift was a “betrayal,” alleging that Altman solicited his resources under the “pretense of creating a public-spirited enterprise” only to permit others to “cash in.”

In response to these allegations, Altman’s legal team argues that Musk is “rewriting history,” claiming the billionaire departed the venture “in a huff in 2018” without fulfilling his pledged USD 1 billion contribution. NBC News notes that the defence intends to show Musk previously supported a for-profit pivot, provided the entity was folded into Tesla.

Both titans have expressed a desire for the public showdown; Musk posted on X that the evidence would “blow your mind,” while Altman remarked it would feel like “Christmas in April!” to have Musk under oath. The personal friction between the two has frequently manifested as “petty and personal,” with Musk labelling his rival “Scam Altman” and Altman publicly seeking the return of his USD 45,000 deposit for a “long-delayed” Tesla sports car.

Despite their shared status as household names, their profiles differ sharply; Musk is nearly a generation older and maintains a net worth of approximately USD 645 billion. Furthermore, NBC News highlights their divergent political and social views, noting Musk’s move to Texas while Altman remains a “booster for San Francisco.”

The stakes of the trial are immense, as Musk is seeking a “permanent injunction to preserve OpenAI’s original charter” and the removal of both Altman and co-founder Greg Brockman. Musk initially estimated restitution at USD 134 billion, though he later requested that any funds recovered be directed to OpenAI’s “charitable arm.”

According to NBC News, OpenAI has dismissed these demands as a “legal ambush” occurring on the very eve of the trial. As the proceedings begin, the court has adopted a no-nonsense policy, with Judge Rogers warning against “gamesmanship” and refusing to “waste precious judicial resources.”

In an effort to maintain decorum, she has mandated that all parties enter through the “regular front door” for security screenings, noting that high profiles do not justify “special privileges”. The nine-member advisory jury will provide a verdict for the judge to consider, though she will ultimately determine liability and any potential remedy herself. (ANI)