On April 28th, CNBC broke the news that the legal battle between Tesla CEO Musk and OpenAI CEO Altman has officially commenced in the federal court of Oakland, California. The roots of this lawsuit trace back to Musk's 2024 allegations against OpenAI. He claimed that OpenAI had reneged on its 2015 pledge to remain a 'non-profit, open-source entity dedicated to the betterment of humanity'. Instead, it had transformed into a profit-driven organization, effectively becoming a commercial puppet of Microsoft.

Musk has petitioned the court to reverse OpenAI's transition to a for-profit model, reinstate its non-profit status, and oust Altman and President Brockman from their leadership roles. Furthermore, he demands that any compensation be channeled to the OpenAI charity. The case is being overseen by Judge Yvonne Gonzalez Rogers, with the trial structured into two distinct phases: determining liability and ruling on remedial actions. The jury will only be involved in the first phase. Key witnesses include Musk, Altman, Brockman, and Microsoft CEO Nadella. Should Musk emerge victorious, OpenAI's plans for an initial public offering (IPO) and its management structure could face significant upheaval.