News Musk v Altman Trial Begins April 27 2026
Musk v. Altman Trial Begins With Jury Selection
The landmark bench trial in Musk v. Altman et al. (Case No. 4:24-cv-04722-YGR) began on April 27, 2026, with advisory jury selection at the federal courthouse in Oakland, California, before Judge Yvonne Gonzalez Rogers.[1][2][3]
The trial follows Musk's voluntary dismissal of his fraud and constructive fraud claims on April 24-25, 2026, narrowing the case from 26 claims to just two: breach of charitable trust and unjust enrichment. Judge Gonzalez Rogers approved the dismissal, and the trial will focus solely on Musk's allegation that OpenAI cofounders Sam Altman and Greg Brockman breached a charitable trust by abandoning OpenAI's nonprofit mission in favor of a for-profit structure.[4]
Trial Structure
The trial is a bench trial with advisory jury, meaning Judge Gonzalez Rogers will serve as the finder of fact with final authority, while the jury's verdict will be advisory only. The trial is divided into two phases:[4][5]
- Phase 1 (Advisory Jury Verdict): The jury will hear arguments and testimony on breach of charitable trust and unjust enrichment. The jury's verdict is advisory and non-binding on the judge.
- Phase 2 (Remedies): If liability is found, the court will address remedies including disgorgement, injunctive relief, and any other appropriate measures.
Judge Gonzalez Rogers has indicated that punitive damages are unlikely to be available in this case and has stated she will issue a separate order on the question.[4]
Key Claims
Musk alleges that he donated over $44 million to OpenAI between 2016 and 2020 based on representations that OpenAI would remain a nonprofit entity dedicated to developing AI for the benefit of humanity. He claims that Altman and Brockman orchestrated a shift to a for-profit structure, enriching themselves and Microsoft while abandoning the charitable mission.
OpenAI has countered that Musk's donations were unrestricted gifts, Musk left OpenAI voluntarily in 2018 when it became clear the organization would not agree to his proposal for him to serve as CEO and merge with Tesla, and that OpenAI's transition to a for-profit entity was necessary to raise the capital needed to develop advanced AI.
Significance
The trial is widely described as the "Trial of the Century" in AI circles. It is the first major case to test the legal enforceability of nonprofit mission commitments in the AI industry. The outcome could have far-reaching implications for AI governance, charitable trust doctrine, and the ability of donors to challenge organizational transitions from nonprofit to for-profit structures.
Musk seeks disgorgement of $65.50 billion to $109.43 billion from OpenAI and $13.30 billion to $25.06 billion from Microsoft, plus injunctive relief. It remains unclear whether an injunction could prevent OpenAI's ongoing for-profit conversion.[4]
See Also
References
- ↑ Reuters, Elon Musk's trial against Sam Altman to reveal the ongoing power struggle for OpenAI
- ↑ The Guardian, Elon Musk and Sam Altman face off in court over OpenAI's founding mission
- ↑ Law360, Musk Trial To Test Limits Of OpenAI's Nonprofit Promises
- ↑ 4.0 4.1 4.2 4.3 ChatGPT Is Eating the World, Elon Musk drops fraud claims v. Sam Altman
- ↑ Business Insider, What to know about the Musk vs Altman trial