Elon Musk's lawsuit against OpenAI CEO Sam Altman focuses on the company's shift to a for-profit structure, a departure from its nonprofit roots. But the courtroom fight may matter far less than what each side manages to unearth about the other.
A nine-person jury was seated Monday in Oakland, with opening arguments beginning later that day. The liability phase, which will determine whether Altman and OpenAI breached their obligations, is expected to last three weeks. The jury will then issue what amounts to an advisory opinion before the judge addresses remedies.
Altman has considerably more riding on the outcome than Musk does. The Wall Street Journal reported Monday that OpenAI missed its own targets for new users and revenue. Weeks earlier, the same outlet noted that some OpenAI shareholders have privately questioned whether Altman should remain in charge as the company navigates toward a public offering.
Musk is preparing a massive IPO for SpaceX, now bundled with his xAI venture. Wall Street has long since factored in his controversies and appears willing to move forward regardless.
Discovery documents have already yielded gossipy details, but nothing game-changing for either party. The real combustion will likely come from live testimony, where both Altman and Musk are almost certain to appear, along with others who have deep personal and professional ties to both men. What emerges during those depositions remains unknown.
Tech capital flows toward individuals as much as ideas. Venture investors routinely declare they back people, not projects. That means the staggering sums poured into OpenAI and SpaceX depend as heavily on Altman and Musk as on any breakthrough technology, despite neither being an AI researcher.
Whatever comes out in the next few weeks could reshape their fortunes and the trajectory of their companies. The verdict matters less than the testimony.
Author James Rodriguez: "This case is less about contract law and more about who survives the other side's discovery closet."
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