Elon Musk Testifies in Lawsuit Against OpenAI Over Nonprofit Mission
Elon Musk concluded three days of testimony in his lawsuit against OpenAI and Sam Altman, accusing them of breaching the company's original nonprofit mission. The trial, underway in Oakland, California, revealed private communications and financial details from OpenAI's founding. Musk seeks $134 billion in damages to redirect to OpenAI's nonprofit arm.
under30ceo.comElon Musk's lawsuit against OpenAI alleges that the organization has deviated from its founding mission as a nonprofit dedicated to developing artificial intelligence for the benefit of humanity. The complaint, filed in federal court, claims breach of charitable trust and unjust enrichment, seeking to redirect profits to OpenAI's nonprofit arm.
According to court filings cited in multiple reports, Musk co-founded OpenAI in 2015 with the intention of creating AI that would be "safe and beneficial" without prioritizing commercial interests.
The trial began with jury selection on Monday at a federal courthouse in Oakland, California, and is projected to last three weeks. Musk testified over three days this week, concluding his testimony on Thursday. During cross-examination by OpenAI attorney William Savitt, Musk stated, "You're trying to trick me," according to transcripts reported by BBC News.
The judge, Yvonne Gonzalez Rogers, struck from the record Musk's remark that OpenAI had "stolen a charity," as detailed in coverage from The Guardian and other outlets.
Musk testified that he provided nearly all initial funding for OpenAI, including approximately $38 million sent through his associate Jared Birchall from 2016 to 2020. Birchall, who began working for Musk in 2016, testified after Musk, confirming the contributions.
Musk stated he was open to OpenAI establishing a for-profit entity provided it supported the nonprofit's goals, but he expected his initial control to diminish as more investors joined.
Judge Gonzalez Rogers instructed Musk and his legal team, "We are not going to talk much about extinction in this case," limiting discussion of broader AI risks, as reported in The Guardian. OpenAI maintains that its current structure, overseen by a nonprofit board, aligns with its original objectives.
The organization created a commercial arm in 2019 and released ChatGPT in 2022. Microsoft has invested billions in OpenAI, which plans an initial public offering later in 2026 at a valuation around $1 trillion.
Musk left OpenAI in 2018 and launched his own AI company, xAI, in 2023. Trial evidence includes previously private emails, text messages, and diary entries from OpenAI's formation. Musk is seeking $134 billion in damages to fund OpenAI's nonprofit activities. Sam Altman, OpenAI's CEO, is scheduled to testify later in the trial.
No public statements from OpenAI's founding documents or additional co-founders beyond those in court filings have been detailed in the available reports as of April 30, 2026.
Key Facts
Story Timeline
6 events- 2026-04-30
Elon Musk arrived at court in Oakland, California, and the trial continued with contentious exchanges during OpenAI’s cross-examination.
2 sourcesThe Guardian · BBC News - 2026-04-29
Elon Musk continued testimony and faced cross-examination on the third day.
3 sourcesTechcrunch · NPR · BBC News - 2026-04-27
The trial began with jury selection at a federal courthouse in Oakland, California.
1 sourceThe Guardian - 2024
Elon Musk filed a lawsuit against Sam Altman and OpenAI.
1 sourceBBC News - 2023
Elon Musk launched xAI.
1 sourceBBC News - 2022
OpenAI released ChatGPT.
1 sourceBBC News
Potential Impact
- 01
Broader implications for AI industry governance and nonprofit-to-for-profit conversions.
- 02
Influence on competitive dynamics between xAI and OpenAI in the AI market.
- 03
Potential delay or complication of OpenAI's planned 2026 IPO at $1 trillion valuation if Musk prevails.
- 04
Financial redirection of billions to OpenAI's nonprofit arm, affecting for-profit operations.
- 05
Possible shake-up in OpenAI leadership, including removal of Sam Altman.
Transparency Panel
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