Musk-Altman OpenAI Trial Opens With Musk Seeking Altman's Removal And Massive Disgorgement
The Musk v. Altman/OpenAI trial opened Tuesday, April 28, 2026, in federal court in Oakland, where Elon Musk asked a judge to remove Sam Altman from OpenAI's nonprofit board and force massive disgorgement.[1]
Musk's attorney Steve Molo delivered opening statements, accusing the defendants of stealing a charity and saying founders illegally enriched themselves when OpenAI converted to a for-profit structure. The suit asks the court to roll back that conversion and to have Altman, Greg Brockman and Microsoft disgorge "tens of billions of dollars" in alleged ill-gotten gains. Jury selection began Monday, April 27, 2026, in Oakland, and Judge Yvonne Gonzalez Rogers will make the final decision while jurors serve only in an advisory role.[2]
The episode traces back to OpenAI's founding, when Musk and others provided early funding and Musk stepped down as co-chair in 2018. Molo told jurors Musk gave about $38 million to the project, while filings cited by another report put the total at $44 million. As Musk withdrew support, Microsoft became OpenAI's largest investor and xAI's Grok chatbot, launched in 2023, emerged as a direct competitor.[1][2]
OpenAI called the lawsuit on X a "baseless and jealous bid to derail a competitor" and said it will question Musk under oath about alleged attempts to undermine its work. Analyst Dan Ives said the case could heighten the AI arms race and reshape corporate governance, though he predicted only "scrapes and bruises" for OpenAI and Altman as the industry watches the outcome.[2]
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📌 Key Facts
- Jury selection in Elon Musk's lawsuit against Sam Altman and OpenAI began Monday, April 27, 2026, in federal court in Oakland, California (jury selection).
- Judge Yvonne Gonzalez Rogers will make the final decision in the case, with the jury serving in an advisory role rather than issuing a binding verdict (Judge Yvonne Gonzalez Rogers).
- Opening statements formally began Tuesday, April 28, 2026, when Musk’s attorney Steve Molo delivered opening remarks in U.S. District Court in Oakland (Steve Molo).
- Molo told jurors that Altman and others illegally converted OpenAI from a nonprofit into a profit‑making structure and described the defendants as having 'stole a charity' in his opening remarks (OpenAI).
- The suit asks the court to roll back OpenAI’s for‑profit conversion and seeks the removal of Sam Altman from the nonprofit board and the ouster of both Altman and Greg Brockman as officers of the for‑profit entity, while asking that Sam Altman, Greg Brockman and Microsoft disgorge 'tens of billions of dollars' in alleged ill‑gotten gains (Sam Altman, Greg Brockman and Microsoft).
- Legal filings cited by CBS say Musk donated a total of $44 million to OpenAI between its founding and 2020 and that he stepped down as co‑chair in 2018 (donated a total of $44 million).
- In court, Molo said Musk contributed about $38 million over roughly five years and argued, 'Without Elon Musk there would be no OpenAI, pure and simple' (about $38 million).
- OpenAI — valued at $852 billion according to the Associated Press — called the lawsuit a 'baseless and jealous bid to derail a competitor' and said it will question Musk under oath about alleged attempts to undermine its work (OpenAI).
- Coverage notes that as Musk withdrew support, Microsoft became OpenAI’s largest investor and that xAI’s Grok chatbot, launched in 2023, now competes directly with OpenAI (xAI’s Grok chatbot).
- Analyst Dan Ives of Wedbush Securities said the case could heighten the AI arms race and reshape AI corporate governance, but predicted 'scrapes and bruises' rather than severe damage for OpenAI and Altman (Dan Ives).
📰 Source Timeline (4)
Follow how coverage of this story developed over time
- On Tuesday, April 28, 2026, Musk’s attorney Steve Molo delivered opening statements in U.S. District Court in Oakland as the Musk v. Altman/OpenAI trial formally began.
- Molo told jurors that ‘the defendants in this case stole a charity’ and argued that Altman and others illegally enriched themselves by converting OpenAI from a nonprofit into a profit-making structure.
- The suit seeks to roll back OpenAI’s for‑profit conversion and asks the court to order Sam Altman, Greg Brockman, and Microsoft to disgorge ‘tens of billions of dollars’ in alleged ill‑gotten gains.
- Musk is seeking Altman’s removal from OpenAI’s nonprofit board and the ouster of both Altman and Brockman as officers of the for‑profit entity.
- Molo said Musk contributed about $38 million to OpenAI over roughly five years and argued ‘Without Elon Musk there would be no OpenAI, pure and simple.’
- Molo described OpenAI’s original structure as a nonprofit ‘vehicle’ not meant for people to get rich and said founders later discussed a for‑profit arm akin to a museum store supporting a museum.
- CBS News reports that jury selection in the Elon Musk v. Sam Altman/OpenAI lawsuit began Monday, April 27, 2026.
- The outlet frames the proceeding as a "legal battle" between tech leaders Elon Musk and Sam Altman and notes that CBS News correspondent Jo Ling Kent is providing on-scene coverage.
- Article does not specify further procedural details beyond confirmation that the jury selection phase is underway on April 27.
- Jury selection in Elon Musk's lawsuit against Sam Altman and OpenAI began Monday, April 27, 2026, in federal court in Oakland, California.
- Judge Yvonne Gonzalez Rogers will make the final decision in the case, with the jury serving in an advisory role rather than issuing a binding verdict.
- Opening statements could begin as early as Tuesday, April 28, 2026, depending on the pace of jury selection.
- The article specifies that Musk is seeking Altman's removal from the OpenAI board and an unspecified amount of money to fund OpenAI's charitable arm.
- Legal filings cited in the piece say Musk donated a total of $44 million to OpenAI between its founding and 2020 and stepped down as co-chair in 2018.
- OpenAI, valued at $852 billion according to the Associated Press, declined comment to CBS but posted on X calling the lawsuit a 'baseless and jealous bid to derail a competitor' and saying it will question Musk under oath about the alleged attempt to undermine its work.
- The piece notes that as Musk withdrew support, Microsoft became OpenAI's largest investor, and that xAI's Grok chatbot, launched in 2023, now competes directly with OpenAI.
- Analyst Dan Ives of Wedbush Securities is quoted saying the case could heighten the AI arms race and potentially reshape AI corporate governance, while predicting 'scrapes and bruises' rather than severe damage for OpenAI and Altman.