tech
April 27, 2026
Musk v. Altman goes to trial in Oakland
A four-week federal case over OpenAI’s soul, a diary entry, $150 billion in claimed damages, and the question of whether a nonprofit can become the world’s most valuable AI company.
TL;DR
- Elon Musk is suing Sam Altman and OpenAI, alleging breach of charitable trust, fraud, and that Microsoft aided and abetted the breach.
- Musk claims he co-founded OpenAI as a nonprofit and was deceived when it became a for-profit entity, seeking $150 billion in damages for OpenAI's charitable arm and Altman's removal.
- OpenAI argues Musk was not deceived and wanted to merge OpenAI with Tesla, leading the combined entity himself.
- A diary entry by Greg Brockman from 2017 is central evidence, interpreted differently by both sides regarding Musk's exclusion and control ambitions.
- Key figures expected to testify include Elon Musk, Sam Altman, Microsoft CEO Satya Nadella, and Shivon Zilis.
- Pre-trial rulings have limited Musk's claims for personal damages and restricted questioning about his alleged ketamine use.
- The trial's outcome could threaten OpenAI's ability to raise capital, pursue an IPO, and operate as a commercial enterprise if the for-profit conversion is reversed.
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