Elon Musk, the billionaire owner of Tesla and X, is set to go to trial against Sam Altman and OpenAI in a case that could define the future direction of artificial intelligence development. The lawsuit centres on what Musk calls a “broken promise” by the company he co-founded in 2015.
Musk argues that OpenAI has moved away from its original mission of developing artificial intelligence for the benefit of humanity. He claims that under Altman’s leadership, the organisation has shifted from a non-profit model to a closed-source, profit-driven structure closely linked to Microsoft.
Musk says he invested about 100 million dollars in the early years to ensure that AI would not be controlled by a few large corporations.
OpenAI and Altman have rejected the claims, calling the lawsuit a distraction driven by competition. They point out that Musk is now building his own AI venture, xAI, which directly competes with OpenAI. According to them, the legal challenge is an attempt to slow down the growth of tools like ChatGPT.
The dispute has its roots in OpenAI’s early years, when Musk, Altman and researchers, including Ilya Sutskever, launched the organisation to counter the growing influence of Google in AI. Rising computing costs later put pressure on the model, and in 2019, Musk left the board after disagreements over control. Soon after, OpenAI created a capped profit structure to attract investment.
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The launch of ChatGPT in 2022 brought global attention and rapid growth, backed by a reported $13 billion investment from Microsoft. The company also saw internal turmoil in 2023 when Altman was briefly removed and then reinstated after employee backlash.
The case, expected to be closely watched when it proceeds on April 27, will test Musk’s claim that he was misled into supporting a project that has now shifted towards profit. OpenAI maintains that the case lacks legal merit and reflects Musk’s own business interests as competition in the AI sector intensifies.

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