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Elon Musk took the stand on April 28, 2026, in a landmark federal trial against OpenAI, CEO Sam Altman, and Microsoft, accusing them of abandoning the company's original nonprofit mission. In an emotional testimony before Judge Yvonne Gonzalez Rogers in Oakland, California, the world's richest person claimed his involvement in founding OpenAI was never about personal gain but about creating a safe, open-source artificial intelligence lab for humanity.
What Is the OpenAI Lawsuit About?
The lawsuit, filed in 2024, alleges that OpenAI, Altman, and co-founder Greg Brockman breached their founding agreement by transforming the nonprofit research lab into a for-profit juggernaut valued at over $500 billion. Musk is seeking $150 billion in damages, which he vows to donate to OpenAI's charitable arm, and demands the removal of Altman and Brockman from the board. He also wants the court to reverse OpenAI's conversion to a for-profit public benefit corporation (PBC).
'If we make it acceptable to loot a charity, then the foundation of philanthropy in America is destroyed,' Musk told the jury under oath, according to court transcripts. The tech entrepreneur described how he co-founded OpenAI in 2015 as a counterweight to Google after a heated argument with Google co-founder Larry Page about AI safety.
Musk's Central Role in OpenAI's Founding
During his testimony on day two of the trial, Musk detailed his involvement in OpenAI's creation. He claimed to have conceived the concept and name, attracted key researchers, and provided the initial financing. Musk contributed at least $44 million to the nonprofit before stepping down from the board in 2018 following a failed bid for total control.
'I could have started OpenAI as a for-profit, but I chose not to,' Musk testified. 'It was never about the money for me.' The OpenAI founding mission and charter explicitly stated the goal of developing artificial general intelligence (AGI) that 'benefits all of humanity' and pledged to make patents and research publicly available.
OpenAI's Counterarguments
OpenAI's legal team, led by attorney William Savitt, painted a very different picture. Savitt argued that Musk was actually a proponent of a commercial structure, provided he could retain control. When that didn't happen, Musk ended his involvement and later turned to the courts against a successful competitor.
'We are here because Mr. Musk didn't get his way,' Savitt said in his opening statement. He presented evidence including a 2017 diary entry from Greg Brockman stating, 'This is the only chance we have to get out from Elon,' and emails showing early tensions over control. OpenAI's lawyers also pointed to Musk's rival AI company, xAI, which launched the Grok chatbot, characterizing the lawsuit as a hypocritical attempt to throttle competition.
What's at Stake: OpenAI's Future and the AI Industry
The trial's outcome could fundamentally reshape the AI landscape. If Musk wins, OpenAI's for-profit expansion could be halted, its business structure reversed, and investments from Microsoft, Amazon, and other partners could be reconsidered. OpenAI is currently valued at hundreds of billions of dollars and is reportedly preparing for an initial public offering (IPO).
Microsoft, which has invested over $13 billion in OpenAI since 2019 and holds a 27% stake in the for-profit entity, is also a defendant in the case. The Microsoft-OpenAI partnership evolution has already shown signs of strain, with the two companies recently ending their exclusive cloud agreement and revenue-sharing arrangement.
The case also sets a binding precedent on whether a nonprofit AI research entity can legally convert to a for-profit structure after receiving charitable contributions. This ruling will directly impact other AI labs and could influence how sovereign AI funds and national AI strategies operate globally.
Trial Timeline and Key Witnesses
The trial is expected to last four weeks. Musk and Altman will each testify for more than two hours, along with co-founder Greg Brockman and Microsoft CEO Satya Nadella. The jury serves only in an advisory capacity; Judge Yvonne Gonzalez Rogers will make the final decision.
Judge Rogers has already scolded Musk for posting over 20 times on X (formerly Twitter) about the case during jury selection and threatened a gag order. The legal implications of AI corporate governance are being closely watched by regulators and tech companies worldwide.
Key issues the court must decide include: whether a 'Founding Agreement' existed and was breached; whether OpenAI's exclusive licensing deal with Microsoft for GPT-4 violated charitable trust obligations; and whether Altman and Brockman breached their fiduciary duties by prioritizing commercial interests over safety and transparency.
FAQ: Elon Musk vs. OpenAI Trial
What is Elon Musk suing OpenAI for?
Musk is suing OpenAI, Sam Altman, Greg Brockman, and Microsoft for breach of contract, breach of fiduciary duty, unfair competition, and unjust enrichment. He alleges they abandoned OpenAI's original nonprofit mission to develop AI safely for humanity in favor of profit-driven goals.
How much money is Elon Musk seeking?
Musk is seeking $150 billion in damages, which he says he will donate to OpenAI's charitable arm. He also wants the court to reverse OpenAI's for-profit conversion and remove Altman and Brockman from the board.
When did OpenAI become a for-profit company?
OpenAI was founded as a nonprofit in 2015. A for-profit subsidiary was created in 2019 to attract investment. In 2025, the subsidiary was restructured into a public benefit corporation (PBC), with Microsoft acquiring a 27% stake.
Who is the judge in the OpenAI trial?
The case is being heard by U.S. District Judge Yvonne Gonzalez Rogers in federal court in Oakland, California. She will make the final ruling, with the jury serving in an advisory capacity.
What happens if Musk wins the lawsuit?
If Musk prevails, OpenAI could be forced to revert to a nonprofit structure, its for-profit investments could be unwound, and Altman and Brockman could lose their board positions. The ruling could also delay or derail OpenAI's planned IPO.
Sources
This article is based on reporting from BNR Nieuwsradio, CNBC, CBS News, CNN, The New York Times, The Washington Post, and court documents from the U.S. District Court for the Northern District of California.
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