ExclusiveMusk vs. Altman as OpenAI Trial Begins in California

Main Street
569 followers
555 Video Views·May 2, 2026
The lawsuit pitting Elon Musk against OpenAI and its CEO Sam Altman kicked off in a California
courtroom this week, with Musk testifying for more than seven hours over three days.
Here's what we learned from the first week in court.
Musk is suing the chat GPT maker Altman and others.
He says they betrayed him after he gave them $38 million in donations and personal help
on the promise they would build a non-profit that would prioritize safe development of AI.
Musk says OpenAI and Altman pivoted to create a for-profit entity to enrich themselves
and in testimony cast his lawsuit as a defense of charitable giving.
OpenAI has said that Musk, who is the CEO of Tesla and SpaceX,
is driven by a compulsion to control OpenAI and is bitter about the company's success
after he left its board in 2018.
Musk said that quote, I don't think you should turn a non-profit into a for-profit,
adding there's nothing wrong with having a for-profit organization.
You just can't steal a charity.
The word charity doesn't appear once in the 2015 blog post announcing the formation of OpenAI,
but Musk repeatedly described OpenAI as one.
He also said, I was reassured by Sam Altman and others that OpenAI would continue as a non-profit
and that I came up with the idea, the name, recruited the key people,
taught them everything I know, provided all of the initial funding.
He says that included recruiting Ilya Sutskever, a top Google researcher,
and using his ties to the CEOs of Microsoft and NVIDIA to get the computing power that AI demands.
William Savitt, a lawyer for OpenAI, Altman and others,
pressed Musk on whether he had read a term sheet that Altman forwarded
on OpenAI's shift from a non-profit to a for-profit overseen by a non-profit.
My testimony is I didn't read the fine print, just the headline, Musk said.
OpenAI has said it created a for-profit entity to allow it to accept private investments,
to help buy computing power and pay top scientists.
Savitt's cross-examination of Musk was tense at times.
Musk attacked the lawyer saying, your questions are not simple.
They're designed to trick me.
On Wednesday, Savitt said their side was pleased with Musk's testimony.
It is true that it's a challenge for a trial lawyer to get
testimony from a reluctant witness, which is what I think we had.
But I think plenty enough came through to make clear that the pieces of the evidentiary
puzzle are as we have described them and not as how Mr. Musk has described them.
Altman is expected to take the stand in his defense as Musk seeks $150 billion
in damages from OpenAI and Microsoft, one of its largest investors,
with proceeds going to OpenAI's charitable arm.
Musk also wants OpenAI to revert to being a non-profit,
with Altman removed from the board and the CEO job.
