Elon Musk OpenAI Trial Begins in Oakland

Elon Musk’s lawsuit against OpenAI opened in Oakland federal court on April 28, 2026, focusing on his claim that the company abandoned its founding nonprofit mission. Musk seeks remedies including the removal of CEO Sam Altman and a restructuring that could reshape OpenAI’s governance.

Trial Claims and Schedule

Musk filed the lawsuit in 2024. Jury selection took place on April 27, with Judge Yvonne Gonzalez Rogers presiding over a trial expected to last about four weeks. Musk alleges OpenAI breached its original nonprofit mission and says he was misled about the company’s nonprofit future. He seeks Altman’s removal and a return to nonprofit status, pursuing damages to fund a nonprofit arm. Earlier filings put potential damages between $130 billion and $180 billion.

Musk’s filings state he contributed about $38 million, while other documents list roughly $44 million through 2020. Sam Altman is expected to testify during the trial. In February 2025, Musk submitted a $97.4 billion bid that OpenAI later described as a sham.

Governance and Market Stakes

OpenAI reorganized in 2019 so its nonprofit parent would control a for-profit affiliate. Under this structure, Microsoft holds a 27% stake. The company’s valuation is reported at $852 billion.

OpenAI counters that Musk was aware a for-profit shift was necessary and has characterized the lawsuit as harassment by rival xAI. Microsoft has been accused of aiding the alleged breach. The dispute, involving corporate structure, a major technology partner, and valuation, raises questions about OpenAI’s governance and potential IPO prospects.