Elon Musk's $44 million OpenAI lawsuit heads to trial Monday — could force the AI startup to reverse its for-profit shift

Jury selection begins Monday in US District Court for the Northern District of California in Musk's suit against OpenAI CEO Sam Altman, president Greg Brockman, and Microsoft. Musk claims he donated more than $44 million to OpenAI in its early years under the belief it would remain a nonprofit, but says Altman and Brockman misled him when they transitioned the company to a for-profit structure in October 2025. Opening arguments start Tuesday, with the trial expected to run through mid-May.

OpenAI counters that Musk supported the for-profit move but wanted to merge OpenAI with Tesla and become CEO — when rejected, he founded competing AI lab xAI instead. The company is now valued at $852 billion, with Microsoft holding a 27% stake and the nonprofit OpenAI Foundation holding a stake valued at $130 billion after the transition to a public benefit corporation.

If the jury finds defendants liable, the judge can force OpenAI to reverse its for-profit transition, which would derail the company's planned IPO and limit its ability to raise billions more for computing power needed to develop advanced AI models. For business professionals, a Musk victory could reshape how other AI startups structure their organizations and nonprofit-to-profit transitions.

The witness list includes Musk, Altman, and Microsoft CEO Satya Nadella. The verdict will be advisory only — US District Judge Yvonne Gonzalez Rogers makes the final decision on remedies.