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Musk Testifies in Lawsuit Accusing OpenAI of Abandoning Nonprofit Mission

Elon Musk testified on April 30, 2026, in his lawsuit against OpenAI, Sam Altman, and Greg Brockman, alleging the organization abandoned its nonprofit mission. During cross-examination, Musk clashed with lawyers over past discussions of a for-profit structure. He seeks $150 billion in damages and major governance changes.

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3 sources·May 1, 3:36 AM(5 days ago)·2m read
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Elon Musk sparred with lawyers for Sam Altman and OpenAI during a courtroom session on April 30, 2026, in Oakland, California. The exchange unfolded at the Ronald V. S.

District Judge Yvonne Gonzalez Rogers. The case centers on Musk's claims that OpenAI misused his donations and support while pursuing massive commercial ambitions. Under cross-examination, OpenAI lawyer William Savitt pressed Musk on whether he ignored warning signs about the organization's shift toward a for-profit structure.

Savitt referred to a 2017 term sheet that discussed plans for a for-profit entity overseen by a nonprofit board. Musk maintained that he relied on assurances from Altman and others. 'I was reassured by Sam Altman and others that OpenAI would continue as a nonprofit,' Musk said.

The lawsuit alleges that OpenAI abandoned promises to build a nonprofit AI organization focused on public benefit and transformed it into a profit-driven enterprise. Tensions rose during the questioning. Judge Rogers criticized the lawyer for interrupting Musk during one exchange on April 30, 2026, though she rejected Musk’s complaints that the questioning itself was improper.

Savitt highlighted emails and text messages showing discussions among OpenAI founders about eventually commercializing AI technology and limiting open-source access. He also pointed to messages suggesting Musk had expressed openness to a for-profit structure. Musk left OpenAI’s board in 2018.

Under further questioning on April 30, 2026, Musk acknowledged that xAI uses OpenAI systems to help train and validate its own AI models. 'It is standard practice to use other AIs to validate your AI,' Musk stated. Musk is seeking $150 billion in damages from OpenAI and Microsoft.

He is also pursuing sweeping changes to OpenAI’s structure, including a return to nonprofit status and the removal of Altman and Brockman from leadership positions. 'I don’t think you should turn a nonprofit into a for-profit,' Musk stated. OpenAI has defended its structure, arguing the for-profit arm was necessary to attract billions of dollars needed for computing infrastructure and top AI talent.

During the trial, Musk's lawyer Steven Molo argued that expert testimony about AI’s potential threat to humanity should be admitted. 'Extinction risk is a real problem. We all could die,' Molo told the court.

Key Facts

Musk seeks major remedies
Musk is seeking $150 billion in damages from OpenAI and Microsoft, a return to nonprofit status, and removal of Altman and Brockman.
Courtroom exchanges
Musk sparred with OpenAI lawyer William Savitt on April 30, 2026, over past discussions of for-profit plans, with Judge Rogers intervening on interruptions.
Musk's statements
Musk stated he was reassured OpenAI would remain nonprofit and acknowledged xAI uses OpenAI systems for validation.
OpenAI defense
OpenAI argued its for-profit arm was necessary for funding computing infrastructure and talent.
AI risk argument
Musk's lawyer Steven Molo pushed for expert testimony on AI extinction risks.

Story Timeline

5 events
  1. 2026-04-30

    Elon Musk testified and sparred with OpenAI lawyers in court, including cross-examination by William Savitt and arguments by Steven Molo.

    1 sourceToday News View Market Dashboard
  2. 2026-04-30

    Judge Yvonne Gonzalez Rogers criticized a lawyer for interrupting Musk and rejected Musk's complaints about questioning.

    1 sourceToday News View Market Dashboard
  3. 2018

    Musk left OpenAI’s board.

    1 sourceToday News View Market Dashboard
  4. 2017

    A term sheet discussed plans for a for-profit entity overseen by a nonprofit board.

    1 sourceToday News View Market Dashboard
  5. Undated (pre-2018)

    Discussions among OpenAI founders about commercializing AI technology and limiting open-source access.

    1 sourceToday News View Market Dashboard

Potential Impact

  1. 01

    Heightened public discussion on AI safety and extinction risks due to court arguments.

  2. 02

    Broader influence on AI industry practices regarding nonprofit to for-profit transitions.

  3. 03

    Possible delays or changes in OpenAI's commercial ambitions and partnerships.

  4. 04

    Financial implications for Microsoft as a major investor, facing possible damages.

  5. 05

    Potential restructuring of OpenAI if Musk prevails, affecting its governance and nonprofit status.

Transparency Panel

Sources cross-referenced3
Framing risk32/100 (low)
Confidence score86%
Synthesized bySubstrate AI
Word count360 words
PublishedMay 1, 2026, 3:36 AM
Bias signals removed4 across 3 outlets
Signal Breakdown
Loaded 1Speculative 1sensational 1charged 1

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