- Musk testified that OpenAI’s conversion from nonprofit to for-profit was an unlawful theft of a charity, demanding damages exceeding $180 billion and removal of Sam Altman and Greg Brockman.
- OpenAI counters that Musk not only knew of the for-profit plans but demanded unilateral control of the company — and when refused, left to start a rival AI firm.
- Musk cited his fear of Google’s lack of AI safety focus as his original motivation, recounting that co-founder Larry Page called him a “speciest” for being “pro human.”
- Legal experts have called Musk an underdog in the case, and the judge reminded jurors that his courtroom statements carried “no legal value whatsoever.”
What Happened?
Elon Musk took the stand Tuesday in his high-stakes federal lawsuit against OpenAI and CEO Sam Altman in an Oakland, California courtroom. Musk, who co-founded OpenAI in 2015 and donated tens of millions to launch it as a nonprofit, alleges that Altman manipulated him into funding an organization that was later illegally converted into a for-profit company. “It’s not OK to steal a charity,” Musk declared to jurors, adding that losing the case could mean “losing every charity in America.” The remedies Musk seeks are sweeping: more than $180 billion in damages, Altman’s removal, and unwinding the company’s recent governance conversion.
Why It Matters?
The trial is the most consequential legal battle in AI history, with the potential to reshape how AI companies are governed, funded, and held accountable. If Musk prevails, it could unwind OpenAI’s for-profit structure at the precise moment the company is racing toward an IPO and deploying billions in infrastructure. If OpenAI wins, it sets a precedent that commercial pivots by AI nonprofits are legally defensible — emboldening other AI labs to follow the same path. The case also lays bare the dysfunction at the heart of Silicon Valley’s AI boom: its most important company was born out of personal rivalries, informal promises, and competing visions of who should control the technology shaping civilization.
What’s Next?
Musk is expected back on the stand Wednesday, alongside his longtime aide Jared Birchall. OpenAI’s legal team will look to undermine Musk’s credibility by showing he was fully informed of — and even advocated for — the for-profit conversion. The nine-juror panel will have to weigh competing narratives with few contemporaneous written records. Meanwhile, both sides agreed to pause social media posts during the trial after Musk posted more than 20 times about the case on the day of jury selection alone.
Source: The Wall Street Journal
