OpenAI CEO Sam Altman has begun testimony in a California federal courtroom in a lawsuit brought by Elon Musk, who co-founded the company and invested up to $38 million before departing to launch competing AI firm xAI. The trial centers on disputes between Musk and OpenAI's founding team after their relationship deteriorated, with both parties trading allegations in recent years.
Why it matters: The outcome could reshape governance and liability frameworks for AI companies and set legal precedent around founder disputes in the rapidly consolidating generative AI sector.