TLDR
- Elon Musk claimed in court he established OpenAI, provided all initial capital, and assembled its core team
- The billionaire is pursuing legal action against OpenAI, Sam Altman, and Greg Brockman over alleged abandonment of nonprofit principles
- Musk’s lawsuit demands $150 billion in compensation, with funds designated for OpenAI’s charitable division
- Defense attorneys contend Musk initiated litigation after being denied operational control
- Federal judge cautioned Musk about inflammatory social media activity following “Scam Altman” posts on X
In a San Francisco federal courtroom Tuesday, Elon Musk delivered testimony in his high-stakes lawsuit targeting OpenAI and its executives Sam Altman and Greg Brockman. The legal dispute revolves around allegations that OpenAI violated its foundational 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 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 charitable 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 entrepreneur positioned his legal action as protecting America’s philanthropic infrastructure. “If we make it OK to loot a charity, the entire foundation of charitable giving in America will be destroyed,” he declared.
Musk is pursuing $150 billion in financial damages from OpenAI and Microsoft, requesting those funds be channeled to OpenAI’s charitable entity. His demands also include Altman’s removal from the board and restoring the organization’s nonprofit structure.
OpenAI Pushes Back
OpenAI’s chief counsel William Savitt presented jurors with an alternative narrative. According to Savitt, Musk endorsed transitioning to a for-profit structure, contingent on him maintaining executive authority. After being rebuffed, Musk established his competing 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 protocols, reportedly labeling OpenAI staff members who emphasized safety considerations as “jackasses.”
Defense counsel explained that establishing a for-profit subsidiary in 2019 became essential for competing with Google’s DeepMind division and recruiting elite researchers.
Judge Warns Musk on Social Media
Prior to witness testimony, U.S. District Judge Yvonne Gonzalez Rogers directly addressed Musk regarding his X platform posts, where he labeled Altman “Scam Altman” and accused him of charitable theft.
While declining to impose a formal gag order, the judge instructed Musk to moderate his online commentary throughout trial proceedings. Musk consented. Altman similarly agreed to comparable restrictions.
Microsoft’s legal representative Russell Cohen described the tech giant as “a responsible partner every step of the way.” Microsoft committed $10 billion to OpenAI during January 2023.
Musk revealed that discussions with Google co-founder Larry Page heightened his AI safety concerns, claiming Page dismissed the potential dangers.
OpenAI’s current valuation exceeds $850 billion. Industry analysts suggest a future public offering could elevate that figure to $1 trillion.
Musk’s testimony will resume Wednesday. Both Altman and Microsoft CEO Satya Nadella are scheduled to provide testimony during the trial.
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