OpenAI's Fate to Be Decided Within 3 Weeks

The trial, which began in California, is a lawsuit filed by Musk against OpenAI, Sam Altman, Greg Brockman, and Microsoft, and will run for about 3 weeks.

The core issue is whether OpenAI broke its nonprofit promise and pushed through a conversion to a public benefit corporation (PBC) after going through the 2019 capped-profit structure. According to the article, the company's current valuation is cited at about US$852 billion.

Musk's side is demanding the following:

• Nullification of OpenAI's structural conversion
• Stripping Altman and Brockman of their roles
• US$130 billion in damages
• Recognition of Microsoft's complicity

OpenAI counters that Musk left because he could not gain control, and that he then founded xAI and has since worked to damage a competitor. During the trial, internal documents, Slack records, and even HR memos have been disclosed, deepening the governance controversy.

The company is also projecting a loss of about US$14 billion in 2026, and is under pressure amid the Sora suspension and efforts to raise large-scale investment. The ruling could have ripple effects on OpenAI's IPO, investor recoupment, and the broader practice of nonprofit-origin AI labs converting to for-profit status.