Elon Musk enters $180bn OpenAI courtroom fight as legal underdog

Elon Musk entered federal court on Monday as the underdog in his multibillion-dollar legal battle against OpenAI, despite seeking remedies that could exceed $180 billion and potentially disrupt the artificial intelligence company’s future.

Jury selection began in Oakland, California, in Musk’s lawsuit accusing OpenAI of betraying its founding nonprofit mission by transforming into a profit-driven AI powerhouse closely aligned with Microsoft. 

Musk claims he backed OpenAI in 2015 believing it would develop artificial intelligence for the benefit of humanity, only for Chief Executive Sam Altman and President Greg Brockman to steer it toward commercial gain.

OpenAI denies the allegations, arguing Musk knew of and supported plans for a for-profit structure before leaving the company and is now suing as the founder of rival startup xAI to hinder a competitor.

Legal experts say Musk faces steep odds because his once-broad lawsuit has narrowed to two main claims — breach of charitable trust and unjust enrichment — after he dropped fraud allegations ahead of trial.

His central argument is that donations intended for an open-source nonprofit were diverted to benefit a closed-source for-profit enterprise.

But specialists in nonprofit law say Musk’s standing as a donor rather than a trustee makes the claim difficult under California law.

If successful, Musk wants damages returned to OpenAI’s nonprofit parent, the removal of Altman and Brockman, and reversal of OpenAI’s recent restructuring.

Analysts say even a Musk win is more likely to result in limited governance changes or a smaller financial award than the headline figure he seeks.