Elon Musk's lawsuit against OpenAI is set to proceed to trial this week in Oakland, California, as jury selection begins. Musk, a co-founder of OpenAI in 2015, departed from the organization in 2018 after unsuccessful attempts to merge it with Tesla or transition it into a for-profit entity to secure necessary funding.
Musk's legal claims assert that OpenAI has strayed from its original nonprofit mission to develop artificial intelligence for the benefit of humanity by forming a for-profit entity in 2019. His lawsuit seeks over $150 billion in damages and calls for the removal of OpenAI CEO Sam Altman and President Greg Brockman, both of whom are also co-founders of the organization.
OpenAI's defense contends that Musk was involved in discussions regarding a potential merger and the creation of a for-profit model prior to his exit. The company argues that Musk's lawsuit may reflect competitive motives linked to his own AI startup, xAI.
The restructuring of OpenAI in 2019 allowed it to attract investment, facilitating significant advancements in AI technology, including the launch of ChatGPT in late 2022. OpenAI's nonprofit arm retains a stake in the newly formed for-profit entity, which is governed under a public benefit corporation model.
Musk's legal team calculated the requested damages by estimating the value of the nonprofit's stake attributable to his contributions, suggesting that he is entitled to between 50% and 75% of it. OpenAI has characterized Musk's litigation as a harassment campaign driven by competitive jealousy.
The jury will not determine specific penalties but will advise on potential financial reimbursements if OpenAI loses the case. Both Musk and Altman have expressed anticipation for the trial proceedings.