Litigation

OpenAI v. Musk

Musk co-founded OpenAI in 2015. He left the board in 2018. In 2024 he sued, alleging the for-profit conversion violated the founding charter. The trial began April 2026. Live tracker, news, and expert coverage below.

OPENAI v ALTMAN · DAY 37N.D. Cal.

OpenAI Inc. v. Musk et al.

PhaseCross-examination · Week 2

On standSam Altman

Verdict ETAMay–June 2026 (estimated)

Trial day37 of trial

Musk's claim: OpenAI broke its founding non-profit charter by converting to a for-profit structure.
If the court rules against OpenAI, the for-profit conversion may be voided — directly affecting AI valuations across the field.
A Musk win advantages xAI's competitive position. xAI's reported $250B valuation could re-rate higher.
A Musk loss is largely priced in — it primarily removes a hanging risk on Tesla's premium multiple.

Full breakdown →

Case timeline

2015
OpenAI founded as a non-profit. Musk co-founder; commits ~$50M.
2018
Musk leaves the OpenAI board, citing Tesla AI conflicts.
2019
OpenAI converts to a 'capped-profit' structure to raise commercial capital.
2023 (Mar)
Musk founds xAI, a direct competitor to OpenAI.
2024 (Feb)
Musk files first lawsuit against OpenAI in California Superior Court; later withdrawn.
2024 (Aug)
Musk re-files lawsuit in N.D. Cal. federal court with expanded claims.
2025
OpenAI announces full for-profit restructuring; complaint amended again.
2026 (Apr)
Trial begins. Cross-examination of Sam Altman scheduled Week 2.

LIVE NEWSWIRELOADING…

Why this matters for Musk's net worth

xAI re-rate: a Musk win materially advantages xAI. The reported $250B valuation could re-rate higher; a loss leaves OpenAI dominant.
OpenAI conversion: if the court compels OpenAI to revert to non-profit structure, every AI valuation in the sector resets — including potentially favorable knock-ons to Tesla's AI premium.
Tesla multiple: a protracted loss with adverse personal findings could weigh on Tesla's premium. A win removes a hanging risk.

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