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Musk’s Case Against OpenAI Opens in Oakland as He Testifies and Judge Limits Posts

The case could redefine rules for turning charities into companies, with direct stakes for OpenAI’s planned IPO.

Overview

  • The trial, which began Tuesday with opening statements and Elon Musk’s testimony, follows Monday’s selection of a nine‑member advisory jury under U.S. District Judge Yvonne Gonzalez Rogers.
  • Musk alleges OpenAI abandoned its 2015 nonprofit mandate by adopting a capped‑profit structure and deep ties with Microsoft, and he seeks Altman’s removal, an unwinding of the restructuring, and very large damages he says would go to the nonprofit arm.
  • OpenAI and Microsoft reject the claims and argue Musk wanted control and now competes through xAI, while noting a nonprofit board still oversees the for‑profit unit.
  • Judge Gonzalez Rogers told the parties to curb social‑media commentary after Musk mocked Sam Altman on X, and key witnesses expected to follow include Altman and Microsoft CEO Satya Nadella.
  • The outcome could weigh on OpenAI’s planned stock listing and test Musk’s rare 'ultra vires' argument that the organization exceeded its charter, with a roughly three‑week trial and a jury offering guidance to the judge.