Elon Musk’s legal battle against OpenAI and Sam Altman officially began in Oakland, pitting Musk’s claims of a “stolen charity” against OpenAI’s allegations of a competitor-driven harassment campaign.
In a federal courtroom on Tuesday, legal counsel for Elon Musk accused OpenAI and Microsoft of “stealing a charity” as opening statements commenced in a high-stakes trial centered on the soul of the artificial intelligence industry. Attorney Steven Molo told jurors that Musk was deceived into funding a nonprofit mission that was later subverted for commercial gain, while OpenAI’s defense countered that the lawsuit is merely a “harassment campaign” fueled by Musk’s ego and competitive jealousy.
Amidst a backdrop of billion-dollar valuations and looming IPOs, Judge Yvonne Gonzalez Rogers cautioned both Musk and CEO Sam Altman who sat just feet apart in court with to limit their social media commentary after Musk referred to his former partner as “Scam Altman” online. The case, which could force OpenAI to revert to a pure nonprofit or oust its current leadership, ultimately asks the court to decide if the startup breached its founding promise to develop AI for the benefit of humanity rather than private profit.

