Billionaire Elon Musk Enters Courtroom Showdown with OpenAI

Elon Musk arrives at the 10th Breakthrough Prize Ceremony on April 13, 2024, at the Academy Museum of Motion Pictures in Los Angeles. (AP)
Elon Musk arrives at the 10th Breakthrough Prize Ceremony on April 13, 2024, at the Academy Museum of Motion Pictures in Los Angeles. (AP)
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Billionaire Elon Musk Enters Courtroom Showdown with OpenAI

Elon Musk arrives at the 10th Breakthrough Prize Ceremony on April 13, 2024, at the Academy Museum of Motion Pictures in Los Angeles. (AP)
Elon Musk arrives at the 10th Breakthrough Prize Ceremony on April 13, 2024, at the Academy Museum of Motion Pictures in Los Angeles. (AP)

Jury selection is to begin Monday in a high-profile legal battle between billionaire Elon Musk and artificial intelligence startup OpenAI, which he accuses of betraying its non-profit mission.

The clash in a courtroom across the bay from San Francisco pits the world's richest man against a startup that Musk once backed and now competes against in the booming AI sector.

OpenAI's ChatGPT is a formidable rival to the Grok chatbot made by Musk's xAI lab.

While the lawsuit filed by Musk is part of a feud between him and OpenAI chief executive Sam Altman, it spotlights a debate whether AI should ultimately benefit the privileged few or society as a whole.

Court filings lay out how Altman tried to convince Musk to back OpenAI in 2015, acting as a co-founder for a non-profit lab whose technology "would belong to the world."

Musk pumped some $38 million into the lab before he left.

OpenAI is now valued at $852 billion, with Microsoft among its backers, and is preparing to go public on the stock market.

The judge presiding over the trial is aiming for a jury to decide by late May whether OpenAI broke a promise to Musk in its drive to be a leader in AI or just smartly rode the technology to glory.

- Musk duped? -

Musk argues in his lawsuit that he was deceived about OpenAI's mission being altruistic.

The tycoon cites an email from Altman in 2017 claiming that he remained "enthusiastic about the non-profit structure" of their AI venture after Musk threatened to cut off funding for the lab.

Just a few months later, however, OpenAI established a commercial subsidiary in the face of needing to invest hundreds of billions of dollars in data centers to power its technology.

Over the course of the following two years, Microsoft pumped billions of dollars into OpenAI and the tech stalwart's stake in the startup is now valued about $135 billion.

Microsoft chief executive Satya Nadella is among those slated to testify at the trial.

- Aimed at Altman -

Along with calling for OpenAI to be forced to revert to a pure nonprofit, Musk's suit urges the ousting of Altman and OpenAI co-founder and president Greg Brockman.

Musk is also seeking as much as $134 billion in damages and to have the court make OpenAI sever ties with Microsoft.

During pre-trial hearings, US Judge Yvonne Gonzalez Rogers mused that Musk team seemed to be "pulling numbers out of the air" when it came to calculating damages.

If the jury sides with Musk, it will be left to Rogers to determine any remedies or payment.

In what OpenAI has dismissed as a public relations stunt, Musk has vowed that any damages awarded in the suit will go to the startup's nonprofit foundation.

- Quest for control? -

OpenAI internal communications brought to light by the lawsuit reveal tensions that culminated with the temporary ouster of Altman as AI chief executive in late 2023.

Musk's legal team highlighted a 2017 entry in Brockman's personal journal reasoning that it would be lying if Altman publicly asserted OpenAI would stay a nonprofit but became a corporation a short time later.

OpenAI now has a hybrid governance structure giving its nonprofit foundation control over a for-profit arm.

In court filings, OpenAI countered that its break-up with Musk was due to his quest for absolute control rather than its nonprofit status.

"This case has always been about Elon generating more power and more money for what he wants," OpenAI said in a post on X, a platform Musk owns.

"His lawsuit remains nothing more than a harassment campaign that's driven by ego, jealousy and a desire to slow down a competitor."

The startup noted that days after Musk entered the AI race in 2023 he called for a 6-month moratorium on development of advanced AI.



Four Takeaways from Musk vs OpenAI Trial

 OpenAI CEO Sam Altman arrives at the federal courthouse, as the trial in Elon Musk's lawsuit over OpenAI's for-profit conversion continues, in Oakland, California, US, May 14, 2026. (Reuters)
OpenAI CEO Sam Altman arrives at the federal courthouse, as the trial in Elon Musk's lawsuit over OpenAI's for-profit conversion continues, in Oakland, California, US, May 14, 2026. (Reuters)
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Four Takeaways from Musk vs OpenAI Trial

 OpenAI CEO Sam Altman arrives at the federal courthouse, as the trial in Elon Musk's lawsuit over OpenAI's for-profit conversion continues, in Oakland, California, US, May 14, 2026. (Reuters)
OpenAI CEO Sam Altman arrives at the federal courthouse, as the trial in Elon Musk's lawsuit over OpenAI's for-profit conversion continues, in Oakland, California, US, May 14, 2026. (Reuters)

After three weeks of intense hearings, Silicon Valley's first major AI trial -- over the lawsuit filed by Elon Musk against the co-founders of OpenAI -- is nearing an end. It is expected to go to the jury on Monday.

Here are four scenes that defined the trial:

Musk blames his own naivety

At the opening of the trial on April 28, Musk portrayed himself as a selfless benefactor and Good Samaritan concerned with protecting humanity from an AI that, if left in the wrong hands, could "kill us all."

"I came up with the idea, the name, recruited the key people, taught them everything I know, provided all of the initial funding," the SpaceX CEO said regarding OpenAI's founding in 2015.

"I gave $38 million essentially for nothing, which they used to build a company worth $800 billion. I was literally an idiot," he said, blaming his own naivety.

Musk was visibly annoyed during the trial as he called out OpenAI's lawyer for asking questions "designed to trap me."

"Mr. Musk, you are a brilliant man," said OpenAI's lawyer William Savitt, as he doubled down on his attacks, disguised with a show of courtesy.

Altman strikes back

Swapping his usual T-shirt, jeans and sneakers for a dark suit and tie, OpenAI CEO and co-founder Sam Altman sat stone-faced in the front row of the Oakland courtroom for most of the proceedings.

But on May 12, it was finally his turn. Musk's lawyer, Steven Molo, was waiting for him, asking if he had always told the truth.

Altman responded: "I'm sure there have been times in my life when I didn't."

But then, with a blank expression and wide eyes, he struck back, saying Musk in 2017 had demanded "90 percent of the equity" and "refused to commit in writing" to sharing power.

Altman said he had no choice as "we did not think that artificial general intelligence should be under the control of a single person."

Brockman's notebook

Every day in the courtroom, Greg Brockman, the president and co-founder of OpenAI, took extensive notes on yellow notepads.

During his questioning on May 4, old journals he kept from years ago took center stage, with Musk's lawyer highlighting some of the most embarrassing excerpts.

Brockman wanted to make money, writing, "financially, what will take me to $1B?" He also wanted "to convert to a b-corp without him (Musk)," a reference to a private company with social and environmental standards.

The journal recorded his concerns about a plan to "steal the non-profit from him (Musk)" as "pretty morally bankrupt."

"There's nothing in there I'm ashamed of," Brockman hit back, claiming that the journal did not include details of an outburst from Musk in 2017.

"I really thought he was going to hit me," Brockman said of the incident. Musk did not touch him, but took a painting of a Tesla, a gift from one of the co-founders, down from the wall and left the room, he said.

Brockman's shares in the company are now worth $30 billion.

The secret go-between

Shivon Zilis -- the mother of four of Musk's children -- is a woman in the shadows, rarely appearing in public.

So her May 6 appearance in the courtroom attracted intense curiosity.

Zilis, who was appointed to the OpenAI board from 2020 to 2023, was asked about her awkward role as both Musk's colleague at Neuralink and Altman's friend.

At the time, her mysterious relationship with Musk was secret. Their children were conceived through in vitro fertilization.

OpenAI accuses her of working as a mole for Musk.

Zilis responded to questions briefly and, at times, sarcastically.

"Relationship is a relative term," she said when asked about her relationship with Musk, before conceding, "there have been romantic moments."

But ultimately, her testimony may matter less than the content of her messages to Musk and Altman.

Those could lead the jury to conclude that Musk, having been sufficiently informed by Zilis, knew of OpenAI's direction long before 2023. If so, his lawsuit could be thrown out before the jury even starts deliberating the merits of the case.


YouTube, Snap and TikTok Settle School District’s Social Media Addiction Claims

The TikTok logo is displayed on signage outside TikTok social media app company offices in Culver City, California on September 30, 2025. (AFP)
The TikTok logo is displayed on signage outside TikTok social media app company offices in Culver City, California on September 30, 2025. (AFP)
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YouTube, Snap and TikTok Settle School District’s Social Media Addiction Claims

The TikTok logo is displayed on signage outside TikTok social media app company offices in Culver City, California on September 30, 2025. (AFP)
The TikTok logo is displayed on signage outside TikTok social media app company offices in Culver City, California on September 30, 2025. (AFP)

Alphabet's YouTube, Snap and TikTok have reached settlements in the first case set for trial in litigation seeking to force social media platforms to cover the costs school districts incur to combat a youth mental health crisis they say the companies fueled.

The settlements were detailed in court filings on Friday in federal court in Oakland, California, and resolve claims by a Kentucky school district that is still due to take Facebook and Instagram parent Meta Platforms to trial on June 15.

Terms of the settlements with ‌Breathitt County School District ‌in rural Eastern Kentucky were not disclosed.

"This ‌matter ⁠has been amicably resolved ⁠and our focus remains on building age-appropriate products and parental controls that deliver on that promise," a YouTube spokesperson said in a statement.

Snap, the parent company of Snapchat, said it resolved the case amicably. TikTok did not immediately respond to a request for comment.

More than 3,300 lawsuits involving addiction claims are pending in California state court against the social media companies. ⁠Another 2,400 cases brought by individuals, municipalities, states and ‌school districts have been centralized in California ‌federal court.

In a landmark trial, a Los Angeles jury on March ‌25 found Meta and Alphabet's Google negligent for designing social media platforms that ‌are harmful to young people. It awarded a combined $6 million to a 20-year-old woman who said she became addicted to social media as a child.

The companies have denied the allegations and say they take extensive steps to keep ‌teens and young users safe on their platforms.

Breathitt is one of about 1,200 school districts suing the social ⁠media companies ⁠over claims they caused a mental health crisis among students and then saddled schools with the fallout.

The school district has been seeking over $60 million to cover the costs of counteracting social media's impact on students’ mental health and to fund a 15-year mental health program to abate the problem.

It also seeks a court order requiring the companies to modify their platforms to reduce addictive features.

Its case is a bellwether, or test case, for over a thousand similar school districts' lawsuits.

Judges and attorneys often use bellwether verdicts to assess the potential value of remaining claims and guide settlement talks. Typically, several bellwether cases are tried before reaching a broader resolution.


Foxconn Logs Quarterly Net Profit Jump on AI Demand

FILE PHOTO: A signage at Foxconn booth at the International Automobile & Motorcycle Parts & Accessories Show (AMPA) trade show in Taipei, Taiwan, April 14, 2026. REUTERS/Edgar Su/File Photo
FILE PHOTO: A signage at Foxconn booth at the International Automobile & Motorcycle Parts & Accessories Show (AMPA) trade show in Taipei, Taiwan, April 14, 2026. REUTERS/Edgar Su/File Photo
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Foxconn Logs Quarterly Net Profit Jump on AI Demand

FILE PHOTO: A signage at Foxconn booth at the International Automobile & Motorcycle Parts & Accessories Show (AMPA) trade show in Taipei, Taiwan, April 14, 2026. REUTERS/Edgar Su/File Photo
FILE PHOTO: A signage at Foxconn booth at the International Automobile & Motorcycle Parts & Accessories Show (AMPA) trade show in Taipei, Taiwan, April 14, 2026. REUTERS/Edgar Su/File Photo

Taiwanese tech hardware giant Foxconn on Thursday announced a 19-percent jump in quarterly net profit as the booming market for artificial intelligence servers drives growth, despite geopolitical uncertainty.

Foxconn, whose official name is Hon Hai Precision Industry, has gone beyond assembling low-margin iPhones to making AI servers for Nvidia, along with electric vehicles and robots.

Soaring global demand for generative AI tools is boosting business for Foxconn, even as the war in the Middle East has threatened supply chain volatility.

On Thursday the company said net profit for January-March came to NT$49.9 billion (US$1.6 billion), up from NT$42.1 billion in the same period the previous year.

The figure beat estimates of $48.4 billion in a Bloomberg survey of analysts, AFP reported.

Foxconn said it expects "strong demand for AI servers" to continue this year, forecasting "high double-digit quarter-on-quarter growth" for AI rack shipments in the second quarter.

When the company reported its annual results in March, chairman Young Liu had shrugged off concerns that market volatility caused by global conflict would dent profits.

Taiwanese contract chipmaker TSMC has also said it does not expect geopolitics to impact its supply of key materials such as helium and hydrogen in the near term.

On Wednesday, some of Foxconn's factories in North America suffered a cyberattack, according to a company statement.

"The affected factories are currently resuming normal production," after a response from the cybersecurity team, said the statement dated Wednesday afternoon in Taiwan.

TechCrunch and other media outlets reported that ransomware gang Nitrogen had claimed responsibility for the hack on the dark web.