Legal Showdown in Oakland: Musk vs. OpenAI

In a packed Oakland federal courtroom, William Savitt of Wachtell, Lipton, Rosen & Katz is representing Sam Altman and OpenAI in a high-stakes trial. Elon Musk alleges that Altman fraudulently transformed OpenAI from a nonprofit into a corporate entity.

"Musk seeks to dismantle OpenAI to benefit his AI company xAI," Savitt argued, framing the lawsuit as a competitive threat rather than a legitimate grievance.

The Core Allegations

Musk's lawsuit claims that Altman misled him by turning OpenAI into a for-profit benefit corporation — a transformation Musk now wants reversed. The case centers on whether Altman breached promises made during OpenAI's founding as a nonprofit research organization.

Savitt's relationship with Altman predates the lawsuit; he worked with OpenAI on confidential matters in 2023. His firm, Wachtell, also assisted with the restructuring of OpenAI's for-profit arm, adding layers of complexity to the proceedings.

A Familiar Opponent

This is not the first time Savitt has faced Musk in court. In 2022, Savitt represented Twitter, suing Musk to enforce his $44 billion acquisition of the platform. The case ultimately pushed Musk to complete the purchase, establishing a precedent of courtroom tension between the two parties.

The Man Behind the Brief

Savitt, a partner at Wachtell, brings an unconventional background to corporate litigation. Before law school, he drove a cab and played in rock bands. He later clerked for Supreme Court Justice Ruth Bader Ginsburg — a credential that underscores his legal pedigree.

His practice includes defense of corporate transactions and representation of high-profile clients such as Brad Pitt and Sotheby's. Speaking about his work with OpenAI, Savitt described it as "very cool" and "motivating."

What's at Stake

If Musk prevails, OpenAI could be forced to reverse its for-profit structure — a move with massive implications for the AI industry. Savitt's task is to prevent what he frames as a competitor's attempt to dismantle a successful organization.

Altman told Business Insider: "bill is awesome!"

Former clerk Judge Pierre Leval called Savitt "brilliant."

The trial continues, with both sides preparing for what promises to be a landmark case in corporate and technology law.