Litigation

OpenAI v. Musk

By Elon Musk Trillionaire Tracker Research DeskUpdated June 22, 2026Reviewed for accuracy

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.

Day 82 · LiveN.D. Cal.

OpenAI Inc. v. Musk et al.

Cross-examination · Week 2 · Verdict ETA May–June 2026

On stand

Sam Altman

Phase

Cross-exam

Trial day

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 →

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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Musk files first lawsuit against OpenAI in California Superior Court; later withdrawn.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.

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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.

Frequently asked questions

What is the OpenAI v Musk lawsuit about?

Musk alleges OpenAI breached its founding non-profit charter by converting to a for-profit structure, and that the conversion improperly benefits Microsoft and OpenAI insiders at the expense of the original mission. OpenAI denies the claims.

When did the trial start?

The trial began in April 2026 in the Northern District of California. Cross-examination of Sam Altman is taking place in week two. Verdict is expected in May or June 2026.

How does the verdict affect Elon Musk's net worth?

A Musk win advantages xAI's competitive position and could push its $250B valuation higher, directly increasing his net worth. A Musk loss is largely priced into Tesla and removes a hanging legal risk on Tesla's premium multiple.

Could OpenAI be forced back into non-profit status?

If the court rules OpenAI breached its charter and orders the for-profit conversion voided, the entire AI valuation landscape resets. That outcome is considered a low-probability tail risk by most legal analysts but is one of the remedies Musk has requested.

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