{"id":625215,"date":"2026-04-24T08:57:19","date_gmt":"2026-04-24T08:57:19","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/625215\/"},"modified":"2026-04-24T08:57:19","modified_gmt":"2026-04-24T08:57:19","slug":"elon-musk-and-sam-altmans-epic-fight-heads-to-court","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/625215\/","title":{"rendered":"Elon Musk and Sam Altman\u2019s Epic Fight Heads to Court"},"content":{"rendered":"<p class=\"css-ac37hb evys1bk0\">On May 25, 2015, Sam Altman sent an email to Elon Musk proposing a \u201cManhattan Project for A.I.\u201d He envisioned a Silicon Valley research lab that would build enormously powerful artificial intelligence and share it with the rest of the world \u201cvia some sort of nonprofit.\u201d<\/p>\n<p class=\"css-ac37hb evys1bk0\">Mr. Musk replied that evening, saying the idea was \u201cprobably worth a conversation.\u201d Before the end of the year, the two tech entrepreneurs founded a nonprofit they called OpenAI, which would go on to launch the global A.I. boom <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2022\/12\/10\/technology\/ai-chat-bot-chatgpt.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">with the release of ChatGPT<\/a>.<\/p>\n<p class=\"css-ac37hb evys1bk0\">But by the time OpenAI\u2019s chatbot was created, Mr. Musk had left the organization after a power struggle with Mr. Altman and others at the lab. He <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/08\/05\/technology\/elon-musk-openai-lawsuit.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">sued<\/a> OpenAI in 2024, claiming that Mr. Altman took advantage of his financial resources and breached the lab&#8217;s founding agreement by putting commercial interests over the public good.<\/p>\n<p class=\"css-ac37hb evys1bk0\">On Monday, jury selection is expected to begin in the federal courthouse in Oakland, Calif., for a trial to decide if Mr. Musk really was Mr. Altman\u2019s deep-pocketed dupe. The case will highlight the many <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2023\/12\/03\/technology\/ai-openai-musk-page-altman.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">personal squabbles and esoteric arguments<\/a> that have driven A.I. development. Mr. Musk, Mr. Altman, and several other key industry figures, including Microsoft\u2019s chief executive, Satya Nadella, and Mira Murati, OpenAI\u2019s former chief technology officer, are slated to testify in the trial, which is expected to last several weeks.<\/p>\n<p class=\"css-ac37hb evys1bk0\">Mr. Musk is asking for more than $150 billion in damages from OpenAI and Microsoft, OpenAI\u2019s primary partner. He is also asking the court to remove Mr. Altman from OpenAI\u2019s board and unravel a shift the company recently made to <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/10\/28\/technology\/openai-restructure-for-profit-company.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">operate as a for-profit company<\/a>.<\/p>\n<p class=\"css-ac37hb evys1bk0\">The trial\u2019s outcome could upend the tech industry\u2019s A.I. race. OpenAI, which has emerged as one of the most important tech companies in the world, could be crippled just as it appears to be heading toward one of the biggest initial public offerings in history. A win for Mr. Musk would also be a win for OpenAI\u2019s competitors, from industry giants like Google to young companies like Anthropic, as well as international competitors such as China\u2019s DeepSeek.<\/p>\n<p class=\"css-ac37hb evys1bk0\">But if Mr. Musk loses, Mr. Altman will continue to solidify control of a company that has become synonymous with corporate dysfunction. And OpenAI, which has expanded to more than 4,000 employees working in offices around the world, will be free to pursue a data center expansion plan that could cost hundreds of billions of dollars.<\/p>\n<p class=\"css-ac37hb evys1bk0\">\u201cThis is just one front in a no-holds-barred billionaire battle for financial resources, government support and, ultimately, A.I. supremacy,\u201d said <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/04\/02\/technology\/an-ai-researcher-takes-on-election-deepfakes.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">Oren Etzioni<\/a>, a veteran A.I. researcher who co-founded the Allen Institute for AI and the start-up Vercept.<\/p>\n<p class=\"css-ac37hb evys1bk0\">Mr. Musk argues in his suit that OpenAI \u2014 now worth an estimated $730 billion as a for-profit company overseen by the original nonprofit \u2014 has abandoned its humanitarian mission in favor of monetary gain. OpenAI says that\u2019s nonsense.<\/p>\n<p class=\"css-ac37hb evys1bk0\">Mr. Musk also tried to recast OpenAI as a commercial enterprise before he left in 2018, according to emails filed as evidence ahead of the trial. And once the A.I. boom arrived, he created his own for-profit lab, xAI. That is now part of the rocket company SpaceX, which is expected to go public as soon as this summer, in an offering worth as much as $1.75 trillion.<\/p>\n<p class=\"css-ac37hb evys1bk0\">The feud between Mr. Musk, 54, and Mr. Altman, 41, is typical of the schisms at A.I. companies over the years. Several times, top researchers have come together with plans to build powerful A.I., before <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2023\/12\/03\/technology\/ai-openai-musk-page-altman.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">fighting over best way to do it, parting ways and launching new companies<\/a>.<\/p>\n<p class=\"css-ac37hb evys1bk0\">\u201cWe don\u2019t typically see Silicon Valley companies engaged in scorched-earth tactics in the courts, but Elon is singular,\u201d said Anupam Chander, a professor of law and technology at Georgetown Law School. \u201cWhen the richest man in the world sues you, you\u2019re going to be worried about the suit, even if you feel that you are in the right.\u201d<\/p>\n<p class=\"css-ac37hb evys1bk0\">A nine-person jury will decide Mr. Musk\u2019s claims against OpenAI. If the jury finds in his favor, Judge Yvonne Gonzalez Rogers \u2014 who oversaw <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/04\/30\/technology\/apple-epic-app-store-ruling.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">Epic Games\u2019 lawsuit against Apple<\/a> over its control of the iPhone App Store \u2014 will decide on damages and other remedies.<\/p>\n<p class=\"css-ac37hb evys1bk0\">Silicon Valley insiders expect high drama in the Oakland courtroom.<\/p>\n<p class=\"css-ac37hb evys1bk0\">Shivon Zilis, a former OpenAI board member and mother of four of Mr. Musk\u2019s children, is on the witness list. So are Helen Toner, Tasha McCauley and Ilya Sutskever, three of the OpenAI board members who unexpectedly <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2023\/11\/17\/technology\/openai-sam-altman-ousted.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">fired Mr. Altman<\/a> in late 2023 before he <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2023\/11\/22\/technology\/how-sam-altman-returned-openai.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">fought his way back<\/a> into the organization five days later. They ousted Mr. Altman because they, too, did not trust him to build A.I. for the benefit of humanity.<\/p>\n<p class=\"css-ac37hb evys1bk0\">Ms. Murati, who helped Mr. Altman regain his spot at OpenAI but <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/03\/07\/technology\/openai-executives-role-in-sam-altman-ouster.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">was later revealed<\/a> to be a key part of his firing, is also expected to testify. Before Mr. Altman\u2019s brief removal, she took questions about his management to the board, people familiar with the board\u2019s talks said.<\/p>\n<p class=\"css-ac37hb evys1bk0\">(The New York Times has <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2023\/12\/27\/business\/media\/new-york-times-open-ai-microsoft-lawsuit.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">sued OpenAI<\/a> and Microsoft, claiming copyright infringement of news content related to A.I. systems. The two companies have denied the suit\u2019s claims.)<\/p>\n<p class=\"css-ac37hb evys1bk0\">When Mr. Musk founded OpenAI with Mr. Altman and several young A.I. researchers, he saw the research lab as a necessary counterweight to the A.I. work underway at Google. He believed that Google and Larry Page, one of its founders, <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2023\/12\/03\/technology\/ai-openai-musk-page-altman.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">did not understand the dangers of A.I<\/a>.<\/p>\n<p class=\"css-ac37hb evys1bk0\">When OpenAI\u2019s founders created it as a nonprofit \u2014 backed largely by donations from Mr. Musk \u2014 they vowed to freely share its technology with the public as open source software. They argued that A.I. would be too powerful and too dangerous to be controlled by a single company.<\/p>\n<p class=\"css-ac37hb evys1bk0\">But by late 2017, many inside OpenAI were arguing that open sourcing may be more dangerous than keeping the technology closed. And they worried that if the lab remained a nonprofit, it could not raise the money it would need to reach its lofty goal of building artificial general intelligence, or A.G.I., a machine that can do anything the human brain can do.<\/p>\n<p class=\"css-ac37hb evys1bk0\">That included Mr. Musk. In February 2018, he forwarded an email to the lab\u2019s other founders suggesting that OpenAI should attach itself to Tesla, his electric car company, and build its A.I. using the supercomputers that Tesla was developing.<\/p>\n<p class=\"css-ac37hb evys1bk0\">\u201cTesla is the only path that could even hope to hold a candle to Google,\u201d he wrote. \u201cEven then, the probability of being a counterweight to Google is small. It just isn\u2019t zero.\u201d<\/p>\n<p class=\"css-ac37hb evys1bk0\">After Mr. Altman and others refused to give Mr. Musk control, he quit. Later that month, he announced his departure to OpenAI\u2019s staff on the top floor of the lab\u2019s office in San Francisco. He withdrew his financial support for the lab.<\/p>\n<p class=\"css-ac37hb evys1bk0\">Forced to find other sources of funding, Mr. Altman bolted a for-profit company onto the original nonprofit and eventually raised $13 billion from Microsoft. The lab also curtailed its efforts to open source its technologies.<\/p>\n<p class=\"css-ac37hb evys1bk0\">Mr. Musk claims in his suit that Mr. Altman and Greg Brockman, OpenAI\u2019s president and a co-founder, intentionally manipulated and deceived him, falsely promising that they would chart a safer path to A.I. than profit-driven tech giants like Google and Microsoft. They fooled him, the suit claims, into donating tens millions of dollars to the OpenAI nonprofit.<\/p>\n<p class=\"css-ac37hb evys1bk0\">The suit demands that OpenAI pay tens of billions of dollars in damages. In a recent filing, Mr. Musk amended his complaint to ask that these damages go to OpenAI\u2019s nonprofit rather than to him.<\/p>\n<p class=\"css-ac37hb evys1bk0\">\u201cHe is asking the court to return everything that was taken from a public charity \u2014 and to make sure the people responsible are never in a position to do this again,\u201d Marc Toberoff, Mr. Musk\u2019s lawyer, said in a statement.<\/p>\n<p class=\"css-ac37hb evys1bk0\">OpenAI <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/12\/13\/technology\/openai-elon-musk-lawsuit.html\" title=\"\" rel=\"nofollow noopener\" target=\"_blank\">argues<\/a> that Mr. Musk is merely trying to hamstring OpenAI as he mounts his own A.I. effort.<\/p>\n<p class=\"css-ac37hb evys1bk0\">Documents released as part of the case seem to show that in 2017, Jared Birchall, the head of Mr. Musk\u2019s family office, registered a company called Open Artificial Intelligence Technologies, which was meant to be a for-profit incarnation of OpenAI.<\/p>\n<p class=\"css-ac37hb evys1bk0\">\u201cHis own words and actions speak for themselves,\u201d OpenAI said in a court filing. \u201cElon not only wanted, but actually created, a for-profit as OpenAI\u2019s proposed new structure.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"On May 25, 2015, Sam Altman sent an email to Elon Musk proposing a \u201cManhattan Project for A.I.\u201d&hellip;\n","protected":false},"author":2,"featured_media":625216,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[62,9661,276,277,234497,49,48,3283,234495,60371,3284,117690,234493,234494,61,234496],"class_list":{"0":"post-625215","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-altman","10":"tag-artificial-intelligence","11":"tag-artificialintelligence","12":"tag-brockman","13":"tag-ca","14":"tag-canada","15":"tag-elon","16":"tag-gonzalez-rogers","17":"tag-greg","18":"tag-musk","19":"tag-openai-labs","20":"tag-samuel-h","21":"tag-suits-and-litigation-civil","22":"tag-technology","23":"tag-yvonne-1965"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/625215","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=625215"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/625215\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/625216"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=625215"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=625215"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=625215"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}