A combined image shows OpenAI CEO Sam Altman during the Asia Pacific Economic Cooperation (APEC) CEO Summit in San Francisco on November 16, 2023, and SpaceX and Tesla CEO Elon Musk during the Viva Technology conference at Porte de Versailles Exhibition Center in Paris on June 16, 2023.
Carlos Barria | Gonzalo Fuentes | Reuters
Nine jurors were seated Monday in a federal courthouse in Oakland, California, in the high-stakes legal battle between longtime friends-turned-rivals Elon Musk and Sam Altman.
Judge Yvonne Gonzalez Rogers is overseeing the case between the world’s richest man and the CEO of OpenAI. Initial arguments are scheduled to begin Tuesday, and CNBC is following the court hearing.
Musk, who co-founded OpenAI in 2015, filed a lawsuit in 2024 against the company, Altman, and OpenAI President Greg Brockman, alleging that they violated their pledge to make the artificial intelligence lab nonprofit and follow its charitable mission. OpenAI has repeatedly dismissed Musk’s claims as “baseless.” Musk stepped down from OpenAI’s board in 2018, launched rival xAI five years later, and merged the company with SpaceX earlier this year.
Musk has sought various remedies over the course of the lawsuit, including removing Altman and Brockman from their roles at OpenAI. Musk’s lawyers said in January that he should receive up to $134 billion in “illicit profits,” but he has since asked that those funds be funneled to OpenAI charities.
Gonzalez-Rogers chose to divide the trial into two parts. One is the liability stage, which determines whether wrongdoing occurred, and the other is the remedy stage, which determines appropriate damages and next steps. Because the jury only deliberates during the liability phase and its verdict is advisory, Gonzalez-Rogers will have the final say on both sections of the trial.
Gonzalez-Rogers said Monday that the liability phase of the trial is expected to conclude by May 21.
Mr. Gonzalez-Rogers began the proceedings by welcoming prospective jurors into the courtroom. She cracked a few jokes while explaining that the case has a court schedule.
Lawyers grilled prospective jurors about their views on AI, Musk and Altman. Some people confessed to having negative views of Musk because of his political ideology.
Gonzalez-Rogers once said, “The reality is people don’t like him.” She expressed confidence that the selected jury would respect the judicial process and the facts of the case.
Mr. Altman and Mr. Brockman appeared in court on Monday.
Musk alleges in his lawsuit that he was “relentlessly manipulated” and “deceived” by OpenAI, Altman, and Brockman and their promises to “chart a safer and more open path than the profit-driven tech giants.” He asked the judge to consider undoing the company’s recent restructuring, which solidified its structure as a nonprofit organization with control over a for-profit business.
Musk and Altman had been engaged in a public war of words in the months leading up to the trial. It continued on Monday, with Musk writing in a post on X: “Fraud Altman and Greg Stockman stole charity. Stopped completely.”
The comment followed a post from the OpenAI Newsroom account.
“We can’t wait to litigate our case in court, where both truth and the law are on our side,” OpenAI wrote. “This lawsuit has always been a baseless and jealous attempt to stand in the way of our competitors.”
Of the 26 claims Musk made in 2024, only two remain: unjust enrichment and breach of charitable trust. Musk’s lawyers dismissed two claims of fraud and constructive fraud ahead of trial to “streamline the case,” according to the filing.
The trial comes as Musk prepares to take SpaceX public in what is likely a record IPO, and as OpenAI prepares for its own public offering expected later this year. The combined private market value of both companies is more than $2 trillion.
—CNBC’s Lora Kolodny contributed to this report.
WATCH: Elon Musk and Sam Altman to appear in court next week — what to expect at trial
