BackLAW
Why Sam Altman and Elon Musk Are Taking Their Feud to a California Federal Court
Elon Musk and Sam Altman face a federal trial in California over claims related to OpenAI's mission and financial dealings. The case follows years of public feuding, with Musk alleging misappropriation and a shift toward profit, and Altman defending OpenAI's direction and governance.
Why It Matters
The outcome could influence the governance and funding models of OpenAI and potentially impact the broader race toward artificial general intelligence.
Timeline
9 Events
Trial opens; key witnesses and proceedings begin
April 28, 2026
On Tuesday, April 28, 2026, the trial opened in Oakland with Musk and Altman among those expected to testify; witnesses include Satya Nadella, Mira Murati, Ilya Sutskever, and Shivon Zilis. The court also ruled that Musk's use of the term 'rhino ket' would not be allowed in court.
Jury sworn in for the Musk v Altman case
April 27, 2026
A nine-person jury was sworn in on Monday, April 27, 2026, to hear the case in a federal courtroom in Oakland, overseen by Judge Yvonne Gonzalez Rogers.
Musk consortium offers to buy OpenAI assets (2025)
2025
In 2025, Musk and a consortium of investors offered to purchase OpenAI's assets for $97.4 billion, a bid OpenAI rejected.
Musk sues OpenAI over mission and profits (2024)
2024
Musk filed a lawsuit in 2024 alleging OpenAI had strayed from its core mission and focused on maximizing profits for Microsoft; he claimed donations totaling around $40 million to OpenAI had been manipulated by the defendants.
Altman briefly ousted as OpenAI CEO (late 2023)
2023
In late 2023, Sam Altman was briefly ousted as chief executive of OpenAI amid concerns that he misled members of the board.
ChatGPT released and accelerates consumer AI use
2022
OpenAI released ChatGPT in 2022, quickly driving consumer AI adoption and reaching 100 million monthly active users within months.
Musk leaves OpenAI amid power struggle
2018
Musk departed OpenAI in 2018 following a reported power struggle with Altman, writing an email that he would no longer fund OpenAI until there was a firm commitment to stay non-profit or he would stop funding entirely.
OpenAI shifts to a for-profit structure (claimed 2017 agreement)
2017
OpenAI contends that in 2017 the defendants and Musk agreed that a for-profit structure was the logical next step to advance the mission, but that they rejected Musk's push to be CEO with absolute control.
OpenAI founded as a non-profit by Musk and Altman
2015
OpenAI was founded in 2015 as a non-profit organization co-founded by Elon Musk and Sam Altman, with the mission of ensuring that artificial general intelligence benefits all of humanity.