A high-stakes trial between Elon Musk and Sam Altman over the future of OpenAI began on Tuesday, April 28, 2026, in Oakland, California. Musk, the world’s richest person, is suing OpenAI, Altman, and President Greg Brockman, alleging they betrayed the company’s original mission to be a nonprofit focused on AI for humanity’s benefit. He claims they transformed it into a profit-seeking entity, enriching themselves and investors. Musk seeks $150 billion in damages and wants OpenAI to revert to a nonprofit, with Altman and Brockman removed from leadership roles.
OpenAI’s lawyers argue Musk sought control of the company and sued only after failing to become CEO. They claim the shift to a for-profit model was necessary to compete with rivals like Google’s DeepMind. The trial, which will be decided by a judge rather than a jury, could reshape the AI industry’s future.
Key Developments in the Trial
Musk’s lawyers argue that OpenAI’s founders “stole a charity” by converting it into a for-profit entity. They claim Musk donated $38 million to the nonprofit and that his concerns grew as OpenAI began drawing investors, including Microsoft. OpenAI’s lawyers counter that Musk pushed for the company to become for-profit and sued only after failing to secure leadership.
Judge’s Warning on Social Media
U.S. District Judge Yvonne Gonzalez Rogers scolded Musk for posting about the case on social media, threatening a gag order if he continued. Musk agreed to limit his posts, while Altman and Brockman also committed to restraint. The judge emphasized the need for a fair trial without external influence.
Musk’s Testimony
Musk testified that the lawsuit is about protecting the integrity of charitable giving. He argued that if OpenAI’s actions go unchecked, it would undermine the foundation of charitable organizations. His lawyers described his involvement in OpenAI’s early days as critical to its success, stating, “Without Elon Musk, there would be no OpenAI.”
OpenAI’s Defense
OpenAI’s lawyers framed the lawsuit as an attempt by Musk to stifle competition. They argued that Musk’s own AI venture, xAI, was launched after he failed to gain control of OpenAI. They also highlighted that the for-profit conversion was necessary to secure funding and talent to compete in the AI space.
Implications for the AI Industry
The trial’s outcome could set precedents for how AI companies balance nonprofit missions with commercial interests. Musk’s lawsuit raises questions about the ethical responsibilities of AI developers and the role of philanthropy in tech innovation. The case also underscores the tensions between visionary founders and the evolving business models of tech startups.