AIToday

Musk and Altman face off in Oakland federal court over OpenAI's shift to for-profit structure, with Musk seeking $150 billion in damages

THE DECODERApr 29, 20262 min read

Summaries like this, in your inbox every morning.

Sign up free →

3 Key Points

  1. The trial began in federal court in Oakland with opening statements from both sides. Musk claimed OpenAI's transition to a for-profit company was 'not OK to steal a charity,' while OpenAI's counsel argued Musk was seeking to take full control and left when other founders refused. The nine-person jury, presided over by federal Judge Yvonne Gonzalez Rogers, is expected to hear the trial run about a month.

  2. Musk is seeking $150 billion in damages and a court order to unwind OpenAI's restructuring, which wrapped up in October. The nonprofit OpenAI Foundation still controls the company and holds a 26 percent equity stake, while Microsoft holds 27 percent. The jury will deliver an 'advisory verdict,' but the final ruling and any remedies are up to Judge Gonzalez Rogers.

  3. Before opening statements, Judge Gonzalez Rogers told Musk to 'control your propensity to use social media to make things worse outside this courtroom.' Musk, Altman, and Brockman agreed to a 'clean slate beginning today' and promised to keep social media activity around the trial to a minimum. Security at the courthouse was ramped up after a man reportedly hostile toward AI was arrested for allegedly throwing a firebomb at Altman's home in San Francisco.

Discussion

No discussion yet for this article

Stay ahead with AI news

Get curated AI news from 200+ sources delivered daily to your inbox. Free to use.

Get Started Free

Free · takes 30 seconds · unsubscribe anytime

1 minute a day. The AI essentials.

200+ sources · Email / LINE / Slack

Get it free →