Musk's lawsuit against OpenAI begins: demands reversal of for-profit transition, removal of Altman, and $134 billion in damages

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The legal showdown between Musk and Altman has officially begun at the federal court in Oakland, California. Musk alleges that OpenAI breached its charitable trust and was unjustly enriched, seeking up to $134 billion in damages, while demanding the reversal of its transition to a for-profit company and the removal of Altman and Brockman. OpenAI counters that Musk was fully aware of and consented to the transition discussions at the time, characterizing the lawsuit as nothing more than harassment by a competitor. (Previous coverage: Musk offered $97.4 billion to acquire OpenAI! Sam Altman rejected it instantly and retorted: "Then I'll buy X (Twitter) for $9.74 billion.") (Background: OpenAI loses political leverage; will Sam Altman be unable to withstand the "AI alliance" between Musk and Trump?) This is not merely a personal feud between two billionaires, but a judicial trial on the development path of AI. The decision for OpenAI to transition from a non-profit organization to a profit-distributing commercial company will now be influenced by the federal court. Musk co-founded OpenAI in 2015 as an early major donor and advisor, leaving in 2018 due to disagreements with Altman over the company's direction. Six years later, he is striking back through legal means. There are two core allegations: breach of charitable trust (i.e., OpenAI deviated from its original non-profit commitment to "benefit humanity") and unjust enrichment (Altman and others privately gained commercial benefits through the transition). As for the fraud-related claims, the judge dismissed them during the pre-trial review phase, and they will not proceed to the formal trial. Musk's legal demands are aggressive: - Rescind the decision for OpenAI to transition into a for-profit company. - Remove Altman and Brockman from their positions and expel Altman from the board of directors. - He also demands up to $134 billion in damages, claiming that if awarded, he will donate the entire amount back to OpenAI's non-profit entity. Jury selection began on April 28, with opening statements expected on April 29. The entire trial is projected to last four weeks. Judge Yvonne Gonzalez Rogers is presiding over the proceedings: the jury's opinion will only serve as a reference for the judge during the first phase of liability determination, while the final discretion—both in terms of liability and subsequent remedies—rests solely with the judge. OpenAI's defense strategy is straightforward but lethal: Musk is not an outside victim; he is an informed participant. The company argues that during his tenure, Musk not only understood the discussions regarding OpenAI's shift toward a more commercial model but was actively involved in them. His lawsuit, therefore, cannot be interpreted as a defense of the AI mission, but rather as a retaliatory action by a competitor who lost control. OpenAI points out that the timeline of the case is intriguing: Musk's AI company, xAI, only began to catch up after ChatGPT became a sensation in late 2022. With xAI yet to close the gap, the lawsuit serves as a distraction, slowing down OpenAI's transformation and creating a more favorable competitive environment for Musk. Both sides are expected to call heavyweight witnesses to the stand, including Musk himself, Altman, Brockman, former Chief Scientist Ilya Sutskever, former CTO Mira Murati, and Microsoft CEO Satya Nadella. This list is essentially a complete roll call of the core decision-making circle in the AI industry in recent years. The two potential outcomes of this trial would have diametrically opposite impacts on the AI industry. If Musk wins, OpenAI's plan to transition into a for-profit company will face legal hurdles, Altman and Brockman may be forced to leave, and OpenAI's path to growth through commercial financing will be obstructed. This would not only affect its partnership structure with Microsoft but could also force OpenAI to redefine the financial feasibility of its "mission-first" approach. If Altman wins, OpenAI's commercial transition will receive judicial endorsement, but the binding power of its non-profit structure will be further diluted. The most common comparison cited by outsiders is Google, which once held "Don't be evil" as its core tenet, a phrase that has long since disappeared from the company's formal code of conduct. Whether OpenAI follows the same path, this lawsuit serves as the first major fork in the road.

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