The courtroom battle between Elon Musk and Sam Altman has formally begun in a US federal court, where Musk has accused OpenAI of abandoning its non-profit roots. On April 28, during the first day of testimony in Oakland, California, Musk told the court that he backed the company with around $40 million when it was founded as a non-profit focused on public benefit. However, he now alleges that the organization has shifted toward a profit-driven model and strong commercial ties, which he claims is a clear betrayal of its original mission. Therefore, Musk is demanding billions in damages and changes to how the company is run.
As the trial opened, both Musk and Altman appeared in a packed federal courtroom in Oakland, with proceedings beginning after jury selection earlier in the week. Opening statements from Musk’s legal team set the tone, accusing OpenAI’s leadership of effectively ‘stealing a charity’ by transforming a non-profit initiative into a commercial powerhouse. Musk was then called as one of the first key witnesses, where he spent several hours outlining his role in founding the organization, its early vision, and the decisions he believes led to its transformation.
During his testimony, Musk sharply criticized the company’s 2019 decision to create a for-profit arm, arguing that it ‘destroyed the foundation’ on which donor trust was built. He told the court that the non-profit structure was meant to act as a safeguard against unchecked commercialization of AI, and warned that prioritizing profits could accelerate development without sufficient regard for safety. Musk also repeated long-standing concerns about the risks of advanced AI, suggesting that the technology, if mismanaged, could pose serious threats.
On the other side, lawyers representing OpenAI pushed back strongly, portraying Musk’s claims as misleading and driven by personal and competitive motives. They argued that his donations came without binding conditions and that the shift to a hybrid structure was essential to raise the massive capital required to build advanced AI systems. The defense also pointed to Musk’s own AI venture and growing rivalry in the sector, suggesting that the lawsuit is part of a broader struggle for influence in a rapidly expanding industry.
The first day of proceedings also revealed the high stakes involved. Musk is seeking damages that could range from over $100 billion to as high as $180 billion, along with demands to remove Altman and other senior leaders and restore OpenAI to a non-profit structure. Meanwhile, the courtroom environment has been tense, with the judge cautioning both sides against making provocative public statements, especially on social media, as the case unfolds.
Looking ahead, Musk is expected to return to the witness stand for continued questioning, with further cross-examination likely to probe inconsistencies in his claims and past involvement with the company. Over the coming weeks, several high-profile witnesses – including senior executives and major industry figures such as Microsoft leadership – are expected to testify. The trial is projected to last around three to four weeks, meaning key developments, including deeper disclosures about OpenAI’s internal decisions and partnerships, are still to come. Notably, the lawsuit was filed by Musk in 2024, targeting OpenAI, Altman, and other executives over what he describes as a breach of the organization’s founding principles.