Judge Warns Musk-Altman Trial Must Focus on Corporate Governance, Not AI Safety Risks

Summary

In the third day of Elon Musk's high-stakes testimony against OpenAI CEO Sam Altman, a federal judge in Oakland sharply redirected proceedings after attorneys began debating whether artificial intelligence poses an extinction risk to humanity. Judge Yvonne Gonzalez Rogers reminded both sides that the core issue on trial is Musk's allegation that Altman betrayed public trust by converting OpenAI from a nonprofit venture into a for-profit entity for personal enrichment. Musk claims he provided crucial funding, advice, and recruiting support to OpenAI when it was founded in 2015, and is seeking approximately $134 billion in damages from OpenAI and co-defendant Microsoft.

Musk's lawsuit represents the culmination of a yearslong feud between the two former associates. The defendant claims OpenAI's mission shifted from the public good to profit-seeking after Musk refused to cede control or allow Tesla to absorb the company. OpenAI counters that Musk never fulfilled his promised $1 billion commitment and left when co-founders refused to grant him control. The trial, scheduled for four weeks, could reshape OpenAI's future. The company completed its corporate restructuring in October 2025 and raised $122 billion in its latest funding round, while Musk's competing AI venture, xAI (acquired by SpaceX), is valued at over $1.2 trillion.

• The lawsuit could determine ChatGPT's ownership structure and OpenAI's corporate future, with significant implications for the AI industry