Musk vs. OpenAI trial begins with internal emails, AGI governance, and billions in potential damages at stake

A federal trial has begun in Northern California over Elon Musk’s claim that OpenAI abandoned its nonprofit mission.

The judge will examine founding documents, early emails, and internal records to assess liability and possible damages.

At the center of the case are OpenAI’s capped-profit structure, its deepening Microsoft ties, and who controls AGI development.

The outcome could shape how frontier AI companies are governed and financed, and whether they remain bound by nonprofit-style obligations.