Key Points
- Elon Musk claims he established OpenAI, provided initial capital, and assembled its core team
- Musk’s lawsuit targets OpenAI, Sam Altman, and Greg Brockman for allegedly betraying the nonprofit foundation
- The lawsuit demands $150 billion in damages, with funds designated for OpenAI’s charitable division
- OpenAI’s legal team contends Musk pursued control and filed suit after being rejected
- The presiding judge cautioned Musk about inflammatory social media activity after he dubbed Altman “Scam Altman” on X
In a San Francisco courtroom on Tuesday, Elon Musk delivered testimony in his high-stakes legal battle against OpenAI and its top executives, Sam Altman and Greg Brockman. The case revolves around allegations that OpenAI abandoned its founding commitment to operate as a nonprofit serving humanity’s interests.
🚨An email exchange from September 2017 was just shown to jurors
Musk: “Either go do something on your own or continue with OpenAI as a nonprofit.”
Altman: “I remain enthusiastic about the non-profit structure!”
The same month Brockman wrote in his diary: “i cannot believe… pic.twitter.com/VDrqrObrzE
— NIK (@ns123abc) April 28, 2026
During his testimony, Musk asserted that he conceived OpenAI’s vision, assembled its founding team, and supplied its initial capital. “I came up with the idea, the name, recruited the key people, taught them everything I know, provided all of the initial funding,” he stated under oath.
Musk emphasized his intentional decision to establish the organization as a nonprofit entity. “It was specifically meant to be for a charity that does not benefit any individual person,” he explained. “I could’ve started it as a for-profit and I specifically chose not to.”
The billionaire positioned his legal action as a broader defense of philanthropic integrity in America. “If we make it OK to loot a charity, the entire foundation of charitable giving in America will be destroyed,” he declared.
Musk’s lawsuit seeks $150 billion in damages from OpenAI and Microsoft, with all recovered funds to be channeled toward OpenAI’s nonprofit division. His demands also include Altman’s removal from the board and the restoration of the company’s nonprofit structure.
OpenAI’s Counterargument
OpenAI’s chief counsel William Savitt presented a contrasting narrative to the jury. According to Savitt, Musk endorsed transitioning to a for-profit structure, but only under the condition that he maintained leadership control. After being denied that authority, Musk established his own artificial intelligence venture, xAI, in 2023.
“What he cares about is Elon Musk being on top,” Savitt argued. “We are here because Mr. Musk didn’t get his way.”
Savitt further alleged that Musk showed little genuine concern for AI safety, reportedly dismissing OpenAI staff members who emphasized safety protocols as “jackasses.”
The defense argued that establishing a for-profit subsidiary in 2019 was essential for remaining competitive with Google’s DeepMind and securing elite research talent.
Court Admonishes Musk Over Online Behavior
Prior to the start of witness testimony, U.S. District Judge Yvonne Gonzalez Rogers directly confronted Musk regarding inflammatory statements he posted on X, including referring to Altman as “Scam Altman” and accusing him of embezzling from a charitable organization.
While declining to impose a formal gag order, the judge strongly encouraged Musk to restrain his social media commentary throughout the proceedings. Musk consented to the request. Altman similarly agreed to comparable restrictions.
Microsoft’s legal representative Russell Cohen defended the tech giant’s role, stating the company served as “a responsible partner every step of the way.” Microsoft committed $10 billion to OpenAI in January 2023.
In his testimony, Musk recounted that his apprehensions about artificial intelligence safety intensified following discussions with Google co-founder Larry Page, whom Musk characterized as dismissive of potential dangers.
OpenAI’s current market valuation exceeds $850 billion. Industry analysts suggest a potential public offering could elevate that figure to $1 trillion.
Musk’s testimony will resume on Wednesday. Both Altman and Microsoft CEO Satya Nadella are scheduled to take the witness stand in the coming days.
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