Sam Altman Testifies in Musk’s OpenAI Lawsuit
OpenAI CEO Sam Altman, 41, told a federal jury in Oakland that Elon Musk, 54, pushed for full control of the organization and integration with Tesla prior to his departure. Musk, who co-founded OpenAI in 2015, filed suit in 2024 seeking more than $150 billion in damages from OpenAI and Microsoft and removal of Altman from the board.
bbc.co.ukSam Altman testified Tuesday in the third week of a federal trial in Oakland, California, that Elon Musk wanted complete control of OpenAI and pushed for it to become part of Tesla before leaving the organization he co-founded in 2015. Musk left OpenAI following a power struggle in 2017.
After his departure, Altman attached a for-profit company to OpenAI and raised billions of dollars from investors, a move that helped set off the global artificial intelligence boom with the launch of ChatGPT.
Musk filed the lawsuit in 2024, seeking more than $150 billion in damages from OpenAI and Microsoft. Any damages would be shared with the OpenAI nonprofit. He is also asking the court to remove Altman from OpenAI’s board.
The two men have a combined net worth of more than $670 billion. OpenAI is now valued at about $730 billion. " Molo also asked whether Altman would ever fire himself, given that he serves both as a board member and chief executive.
Altman told the court there was no way he could have built a multitrillion dollar charity without attaching it to a commercial company. "I hope the nonprofit will have trillions of dollars," he said. Musk’s legal team noted that the OpenAI Foundation has very few staff.
I. resilience. In late 2022, Musk sent a text to Altman complaining that Microsoft was preparing to invest $10 billion in OpenAI.
"This is a bait and switch," Musk wrote. Altman offered Musk equity in OpenAI’s for-profit venture on several occasions. Microsoft invested $10 billion. A few months later, Musk launched xAI.
Satya Nadella, Greg Brockman and Shivon Zilis, the mother of four of Musk’s children, testified as witnesses during the first two weeks of the trial. The OpenAI board fired Altman in late 2023 after Thanksgiving, saying he had not been candid with them. The board later agreed to rehire him.
An incendiary device was thrown at Altman’s home in San Francisco in April. Daniel Moreno-Gama, a 20-year-old Texas man, was charged with attempted murder and attempted arson.
I. executives, investors and board members.
I. " Moreno-Gama has pleaded not guilty.
Systems. The two companies have denied the suit’s claims. I. Musk has testified in court during at least five trials over the past seven years.
Closing arguments are expected as soon as this week before Judge Yvonne Gonzalez Rogers, who previously oversaw a high-profile lawsuit against Apple over its control of the App Store. A verdict could reshape control of OpenAI and influence the broader artificial intelligence competitive landscape.
Key Facts
Story Timeline
7 events- May 12, 8:02 PM ET
9 new sources added: @GaryMarcus, The New York Times, Semafor, Fortune, Forbes, Business Insider, Al Jazeera, NPR, CBS News
9 sources@GaryMarcus · The New York Times · Semafor - 2026-05-12
Sam Altman testifies in Oakland federal trial, faces cross-examination by Steven Molo on trustworthiness
1 sourceThe New York Times - April 2026
Incendiary device thrown at Sam Altman’s San Francisco home; Daniel Moreno-Gama charged with attempted murder and arson
1 sourceThe New York Times - Late 2023
OpenAI board fires then rehires Sam Altman after Thanksgiving, citing lack of candor
1 sourceThe New York Times - 2024
Elon Musk files lawsuit against OpenAI, Altman and Microsoft seeking over $150 billion in damages
1 sourceThe New York Times - Late 2022
Musk texts Altman calling Microsoft’s planned $10 billion investment a 'bait and switch'
1 sourceThe New York Times - 2017
Elon Musk leaves OpenAI after power struggle
1 sourceThe New York Times
Potential Impact
- 01
Ruling could influence competitive positioning among AI companies including Musk’s xAI, Google and Anthropic.
- 02
Outcome may affect OpenAI’s planned data center expansion costing hundreds of billions and potential IPO.
- 03
A Musk victory could force Altman’s removal from OpenAI board and halt the company’s full shift to for-profit status.
- 04
Decision may set precedent for governance disputes between nonprofit missions and commercial AI development.
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