Elon Musk testifies in OpenAI trial over nonprofit mission breach

Elon Musk took the witness stand on April 28, 2026, to testify in his high-stakes lawsuit against OpenAI and its CEO, Sam Altman. The core of Musk's accusation is that OpenAI has betrayed its founding mission as a nonprofit organization, which was established in 2015 with the primary goal of developing artificial intelligence for the benefit of humanity rather than for private gain. Musk alleges that he was deceived into donating approximately $38 million to OpenAI, based on assurances that the company would remain a nonprofit and not pursue profit-driven objectives. He claims that the subsequent transformation of OpenAI into a for-profit entity, now valued at an estimated $852 billion, represents a fundamental breach of that original agreement. Musk's legal team contends that this shift has allowed Altman and other executives to unjustly enrich themselves and has prioritized profit over the safety and benefit of all humankind. During his testimony, Musk detailed his extensive career, beginning with his upbringing in South Africa and his subsequent move to Canada and then the United States, where he founded companies like Zip2, PayPal, SpaceX, Neuralink, and Tesla. He emphasized his long-standing interest in artificial intelligence and his deep-seated concerns about its potential risks, particularly when not developed with safety as a paramount concern. Musk cited conversations with Google co-founder Larry Page as a significant influence on his decision to co-found OpenAI, as he felt Page was not adequately addressing the existential risks posed by advanced AI. Musk claimed that he was instrumental in OpenAI's early stages, providing not only significant funding but also business expertise and leveraging his network to attract top AI researchers and engineers. He also highlighted his role in connecting OpenAI with key industry figures, including Microsoft CEO Satya Nadella and Nvidia co-founder Jensen Huang. OpenAI's defense, however, presents a starkly different narrative. Attorneys for Altman and OpenAI argue that Musk's claims are without merit and that his lawsuit is motivated by jealousy, regret over his departure from the company, and a desire to hinder a competitor. They contend that Musk himself was aware of and even advocated for a for-profit structure for OpenAI, particularly if he could maintain control. Evidence presented by OpenAI suggests Musk demanded a controlling stake in the company and even proposed merging it with Tesla, which the other founders reportedly rejected. OpenAI's lawyers argue that Musk left in 2018 after failing to secure this control and only filed lawsuits when OpenAI achieved significant success, especially after the viral popularity of ChatGPT. They characterize his actions as a "harassment campaign" and an attempt to damage a rival AI venture, xAI, which Musk launched in 2023. The trial, taking place in Oakland, California, involves a jury that will weigh the evidence presented by both sides. The stakes are incredibly high, as a verdict in Musk's favor could force OpenAI to revert to its nonprofit structure, potentially unwinding its for-profit conversion and jeopardizing its future IPO plans. Furthermore, Musk seeks the removal of Sam Altman and Greg Brockman from their leadership positions. He has stated that any damages awarded to him would be directed to OpenAI's nonprofit entity rather than personally benefiting him. The case is also seen as setting a critical precedent for the broader landscape of charitable giving in the United States, with Musk warning that a ruling against him could "give license to looting every charity in America." The trial is expected to last three weeks, with other prominent figures in the tech industry, including Microsoft CEO Satya Nadella, slated to testify.

Frequently Asked Questions

Read Full Story on Quick Digest