A trial between two of Silicon Valley's most prominent figures began on Monday in Oakland, California, as Elon Musk accuses Sam Altman of betraying the founding agreement of the artificial intelligence company they co-founded, OpenAI. Jury selection got under way in the federal courtroom of Judge Yvonne Gonzalez Rogers, who told prospective jurors that the case would not be highly technical, describing it as 'just a case about promises and breaches of promises'. Altman and OpenAI president Greg Brockman attended, while Musk was not present.
Musk's lawsuit alleges that Altman and his colleagues swindled him into funding OpenAI on the understanding that it would operate as a non-profit entity focused on safety and open access to AI, only to later 'flip the narrative and cash in' through lucrative deals with Microsoft and the creation of a for-profit affiliate. The suit claims breach of charitable trust and unjust enrichment against Altman, Brockman and Microsoft. Musk had previously brought fraud claims but voluntarily dropped them on Friday.
OpenAI has strongly denied the allegations, arguing that Musk agreed in 2017 that a for-profit structure was a necessary next step, and that his legal action is motivated by 'jealousy' and regret over leaving the company. The firm also maintains that Musk's funding was a tax-deductible donation, not an investment, and does not entitle him to ownership.
During jury selection, several prospective jurors expressed negative views of Musk, with one calling him a 'jerk' and another saying he 'probably cares more about money'. Most said they could nonetheless be fair, with one adding: 'While I do not like him, I can definitely separate my feelings about him from the facts in the case.' Others voiced reservations about AI, while some said they regularly use OpenAI's ChatGPT chatbot.
The case carries significant stakes for OpenAI, which is expected to go public later this year at a valuation of about $1tn. Musk is seeking more than $134bn in damages, the removal of Altman and Brockman from OpenAI, and the reversal of the company's restructuring as a for-profit entity. The trial, expected to last about three weeks, is set to hear from Musk, Altman, and Microsoft CEO Satya Nadella, among others.
