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Jury selection begins in Musk v. Altman trial

Jury selection has officially commenced in the Oakland, California, federal courthouse for the high-stakes legal dispute between Elon Musk and OpenAI CEO Sam Altman. Judge Yvonne Gonzalez Rogers is presiding over the trial, which pits the world's wealthiest individual against the leader of the artificial intelligence giant. A panel of nine jurors will be seated to serve, with no alternates designated, as per a March court filing. The proceedings mark a significant escalation in the rivalry between the two tech titans, who were once close collaborators before becoming legal adversaries. The case stems from a 2024 lawsuit filed by Musk, who co-founded OpenAI in 2015. Musk alleges that the company and its current leadership, including Altman and President Greg Brockman, breached their original commitments to maintain OpenAI as a nonprofit organization dedicated to a charitable mission. Following his departure from the board in 2018, Musk established xAI, which he later merged with SpaceX. OpenAI has consistently dismissed the accusations as baseless. Musk has sought various remedies, including the removal of Altman and Brockman from their positions. Although Musk's legal team initially requested up to $134 billion in damages for wrongful gains, they subsequently stated that such funds should be redirected to support the OpenAI charity. To manage the complexity of the case, Judge Gonzalez Rogers has divided the trial into two distinct phases. The first is the liability phase, scheduled to last until mid-May, during which the jury will determine whether any wrongdoing occurred. It is important to note that the jury's verdict in this phase is advisory; the judge retains the authority to make the final legal decision. If the court finds fault, the second phase, known as the remedies phase, will begin on May 18. This section will address potential damages and corrective actions, such as unwinding OpenAI's recent restructuring that cemented its status as a hybrid nonprofit-for-profit entity. Judge Gonzalez Rogers anticipates the entire case will conclude by May 21. In terms of the specific legal grounds, Musk originally filed 26 claims in 2024. However, his lawyers voluntarily dismissed the fraud and constructive fraud allegations prior to the trial to streamline the proceedings. Consequently, only two claims remain active: unjust enrichment and breach of charitable trust. Musk argues he was manipulated and deceived by the promise that OpenAI would prioritize safety and openness over the profit motives of other major technology firms. The trial coincides with a critical period for both companies involved. Musk is preparing for a potential initial public offering of SpaceX, while OpenAI is also gearing up for a public listing later this year. Together, these two entities represent a combined private market value exceeding $2 trillion, making the outcome of this legal battle a matter of significant interest to the broader technology and financial sectors. The proceedings are being covered by CNBC from the courtroom in Oakland.

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Jury selection begins in Musk v. Altman trial | Trending Stories | HyperAI