The legal battle between SpaceX CEO Elon Musk and OpenAI CEO Sam Altman has now entered a critical stage as jury selection begins. At the center of the case are claims that Musk was misled about OpenAI’s mission, which, if proven true, could affect OpenAI’s future. The legal clash also comes as both sides prepare for major moves in public markets, with SpaceX already filing a confidential IPO with the U.S. SEC.
Claim 55% Off TipRanks
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Discover top-performing stock ideas and upgrade to a portfolio of market leaders with Smart Investor Picks
Jury Selection Starts in Musk and OpenAI’s Legal Case
Musk and Altman are now facing off in a court in Oakland, California, as jury selection begins in their dispute over OpenAI. The case traces back to 2015 when Musk helped launch OpenAI as a non-profit group focused on safe AI. He later left the board as a co-founder in 2018 and filed a lawsuit in 2024 against OpenAI, Altman, and Greg Brockman.
Musk says the group shifted away from its original goal after it brought in large outside funding and shifted toward a more profit-driven path. He claimed that he had not been given any clear notice or asked for his approval before this change took place.
OpenAI publicly denied these claims, saying that the changes were needed to build and run large AI systems at scale. They also argued that Musk was aware of the company’s shift toward a more business-focused model.
Before trial, Musk dropped fraud claims, leaving issues tied to unfair gain and breach of trust. He is also pushing the court to review leadership changes and parts of OpenAI’s shift in structure.
A jury will first decide whether any wrongdoing occurred, while a judge makes the final rulings. The hearing is set to run for several weeks and will include key tech witnesses.
Trial Results Could Shape OpenAI’s Future Direction
The legal case between OpenAI and Musk is unfolding at a key time for both sides as they expand their AI work and compete for higher market value. OpenAI has grown into one of the most valuable private tech firms and is expected to move closer to a public listing. Its market valuation is also estimated to reach $1 trillion post-IPO.
Musk is also preparing to debut SpaceX in connection with xAI as competition in the sector heats up. Following the recent merger, both firms are now valued at approximately $1.25 trillion.
Notably, the outcome of the trial could affect both OpenAI and its relationship with key partners like Microsoft (MSFT). The amount in damages being argued in court is up to $134 billion, with Musk pledging to donate all the money to charity if he wins the case.
Will OpenAI Go Public in 2026?
Like SpaceX, OpenAI is expected to go public in 2026. The private company is estimated to reach a valuation of $1 trillion, depending on market conditions. Recent reports also suggest that OpenAI may be targeting a Q4 2026 listing just as the company closed a record $122 billion funding raise in March 2026. Other major companies set to publicly debut in 2026 include top AI rivals such as Databricks and Anthropic.
