Musk, Altman set for OpenAI trial

The legal battle between Tesla CEO Elon Musk, a former co-founder of OpenAI, and Sam Altman, the CEO of OpenAI, is set to begin on April 27 local time. AFP reported that the U.S. District Court for the Northern District of California in Oakland has notified both Musk and Altman of the trial date.

The case stems from a lawsuit filed by Musk against Altman and OpenAI. At the center of the dispute is whether Altman misled Musk, who invested tens of millions of dollars, by breaking a pledge to operate OpenAI as a nonprofit organization dedicated to the public good. OpenAI argued that Musk’s claims amounted to baseless harassment and sought dismissal of the case, but the court rejected the request. The trial will be conducted before a jury.

Once business partners, the two men are now widely seen as prominent rivals in the Big Tech industry. Their split began over disagreements about OpenAI’s management structure and guiding philosophy. Musk and Altman co-founded OpenAI in 2015, but conflicts of interest emerged in 2018 between Tesla’s AI research efforts and OpenAI. Musk also opposed Altman’s push to create a for-profit subsidiary and pursue commercialization, citing concerns about the risks posed by AI technology. He left the company later that year. Musk went on to found another AI company, xAI, in 2023 and filed lawsuits seeking to block OpenAI’s transition to a for-profit entity. In February last year, he also expressed interest in acquiring OpenAI. Musk said it was time for OpenAI to return to a focus on open source principles and safety, a remark that drew strong opposition from Altman.

OpenAI formally announced plans in October 2024 to transition into a for-profit company and finalized a restructuring plan that same month to adopt a public benefit corporation model aimed at pursuing both commercial and public interest goals. Industry observers view the move as a de facto step toward a future initial public offering. While a nonprofit structure makes a public listing impossible, conversion to a public benefit corporation removes that barrier. Before the restructuring, the company operated under a structure in which the nonprofit OpenAI Foundation retained control while limiting its equity influence and participation in management decisions.


장은지 jej@donga.com