Elon Musk moves to oust OpenAI CEO Sam Altman as legal fight escalates

Elon Musk is seeking to remove OpenAI chief executive Sam Altman and president Greg Brockman from their roles, escalating a legal dispute that is set to go to trial later this month.

In a court filing on Tuesday, Musk’s lawyers outlined the remedies they would pursue if a judge or jury finds that OpenAI and its leadership defrauded him.

Legal filing seeks leadership removal

The filing requests that Altman be removed as a director of the OpenAI nonprofit board, and that both Altman and Brockman be stripped of their roles within the company’s for-profit arm, CNBC reported.

“Plaintiff will seek an order removing Altman as a director… and removing both Altman and Brockman as officers,” Musk’s lawyers said, adding that such measures are a recognised remedy when leaders fail to uphold a charity’s public mission.

Musk is also seeking to have OpenAI revert to operating as a fully nonprofit entity, reversing its current hybrid structure.

Dispute rooted in OpenAI’s transformation

The case stems from a lawsuit filed by Musk in 2024, in which he alleged that OpenAI — a company he co-founded in 2015 — had “manipulated” and “deceived” him into contributing $38 million, based on assurances it would remain a nonprofit, CNBC reported.

OpenAI later restructured and now operates with a nonprofit parent holding a stake in its for-profit business, which includes products such as ChatGPT.

The legal battle has since evolved into a broader clash involving governance, funding and strategic direction, alongside a growing business rivalry between Musk and OpenAI.

Trial set to begin later this month

Jury selection for the case is scheduled to begin on 27 April in a federal court in Oakland, California (US), according to CNBC.

Musk’s lawyers have previously argued that he should be awarded up to $134 billion in damages, describing them as “wrongful gains” accrued by OpenAI and its backers, including Microsoft.

OpenAI pushes back

OpenAI has strongly rejected Musk’s claims. In a statement posted on X following the latest filing, the company described the lawsuit as “a harassment campaign” driven by “ego, jealousy and a desire to slow down a competitor."

The company has also called for regulatory scrutiny of Musk’s actions. In a recent letter to authorities in California and Delaware, OpenAI alleged “improper and anti-competitive behaviour” by Musk and his associates.

Rising stakes in an AI rivalry

The dispute comes amid intensifying competition in artificial intelligence. Musk left OpenAI in 2018 and later launched rival firm xAI in 2023, which develops AI tools including the Grok chatbot.

Earlier this year, Musk’s SpaceX acquired xAI in a deal valuing the combined entity — which also includes X — at $1.25 trillion.

The case underscores growing tensions over control, governance and commercial direction in the AI sector. With the trial imminent, the outcome could have wider implications for how leading AI organisations are structured and governed in the years ahead.