Gate News message, April 27 — Elon Musk escalated his dispute with OpenAI on Monday by calling chief executive Sam Altman “Scam Altman” on X as jury selection began in Oakland, California, for the lawsuit over OpenAI’s shift from nonprofit research lab to commercial AI company. OpenAI responded directly on X, stating “the truth and the law are on our side” and calling Musk’s suit “a baseless and jealous bid to derail a competitor.” Altman was present for jury selection, with opening statements expected on Tuesday.
Musk’s lawsuit centers on claims that OpenAI, Altman, president Greg Brockman, and Microsoft abandoned the company’s founding mission to build AI for humanity’s benefit and instead converted it into a profit-driven enterprise. Musk is seeking $150 billion in damages intended for OpenAI’s charitable arm, while also requesting that the company return to nonprofit status and that Altman and Brockman be removed from leadership roles.
The trial is expected to bring major technology figures to testify, including Musk, Altman, Microsoft CEO Satya Nadella, and former OpenAI board member Shivon Zilis. The case is being heard in federal court before Judge Yvonne Gonzalez Rogers. Court filings have revealed internal tensions, including a 2017 diary entry from Brockman questioning Musk’s leadership, and evidence suggesting Musk sought the CEO role at OpenAI.
On the same day jury selection began, OpenAI announced a major amendment to its Microsoft partnership. The company stated that Microsoft remains its primary cloud partner but that OpenAI can now serve all products across any cloud provider. Microsoft’s license to OpenAI intellectual property will continue through 2032 but is now non-exclusive, and Microsoft will no longer receive revenue share payments from OpenAI, though OpenAI will continue paying Microsoft revenue share through 2030 at the same percentage subject to a total cap.
The lawsuit stems from OpenAI’s 2019 transition to a for-profit entity structure after Musk left the board, followed by a shift last fall to a public benefit corporation in which the nonprofit retained 26% equity plus additional warrants tied to valuation targets. Musk contributed approximately $38 million in seed funding between 2016 and 2020, primarily before departing the board.
Musk argues his support was used to build a business that no longer matches its original charitable purpose. OpenAI counters that Musk participated in restructuring discussions and sought the CEO position, and now uses the lawsuit to damage a competitor while promoting his own AI venture, xAI. Microsoft, also named in the case, says it only partnered with OpenAI after Musk had left and denies colluding to sideline him. On April 24, Musk voluntarily dropped fraud claims, leaving the trial focused on contract, governance, and corporate structure issues.
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