Elon Musk's Lawsuit Against OpenAI Enters Second Week in California Court
Elon Musk took the stand this week in a federal trial in Oakland, California, accusing OpenAI of betraying its original non-profit mission. The case, pitting Musk against OpenAI CEO Sam Altman, enters its second week on May 4, 2026, with live audio streaming available to the public. At stake is OpenAI's shift to a commercial entity valued potentially at $1 trillion.
under30ceo.comElon Musk testified in a federal courthouse in Oakland, California, this week as part of his lawsuit against OpenAI and its CEO Sam Altman. The case, filed in the US District Court for the Northern District of California, alleges that OpenAI's transition from a nonprofit to a for-profit entity violated its founding agreements to develop artificial intelligence for the benefit of humanity.
The trial's second week began on Monday, May 4, 2026. According to a post by Sawyer Merritt on X, formerly Twitter, live audio of the proceedings, titled "Elon Musk v. OpenAI," would be available starting that day.
During the third day of the trial, Musk underwent cross-examination by OpenAI's lawyers. In his testimony, Musk stated that an OpenAI lawyer was trying to "trick" him, as reported by BBC News.
A court filing cited by Forbes and TechCrunch indicates that Musk suggested settling the dispute with OpenAI shortly before the trial began. The filing, according to TechCrunch, claims that Musk subsequently sent texts to OpenAI co-founder Greg Brockman and CEO Sam Altman, including one stating that Brockman and Altman "will be the most hated men in America," as quoted in a Benzinga report and a Financial Times article.
OpenAI, founded in 2015 with Musk as a co-founder, has stated in response that Musk left the organization and is now seeking to hinder a competitor. The company is preparing for a potential initial public offering that could value it at up to $1 trillion, according to reports in the Wall Street Journal and other outlets.
The lawsuit examines OpenAI's structural changes since its inception as a nonprofit, with Musk arguing that the shift prioritizes profit over public benefit. No publicly released evidence from the court filings has documented specific agreements from 2015 beyond the allegations in the complaint.
OpenAI's full response to the settlement suggestion has not been detailed in the available sources as of May 4, 2026.
Key Facts
Story Timeline
6 events- May 4, 2:03 PM ET
4 new sources added: Techcrunch, The New York Times, Benzinga, Financial Times
4 sourcesTechcrunch · The New York Times · Benzinga - May 4, 2026
Second week of trial begins with live audio streaming on YouTube.
2 sourcesWall Street Journal · SawyerMerritt - Week of May 4, 2026
Elon Musk testifies on OpenAI's betrayal of mission.
1 sourceFrance 24 - Third day of trial (late April 2026)
Musk cross-examined and accuses lawyer of trying to 'trick' him.
1 sourceBBC News - Just before trial start (April 2026)
Musk suggests settlement, then files aggressive court actions.
1 sourceForbes - 2015
OpenAI founded as non-profit by Musk and others.
2 sourcesFrance 24 · The New York Times
Potential Impact
- 01
Public scrutiny on AI governance and non-profit to profit transitions in tech.
- 02
Broader questions on binding promises in high-value tech development.
- 03
Potential influence on OpenAI's IPO plans if mission violation is upheld.
- 04
Distraction for Musk's other ventures amid ongoing legal battles.
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