The case, unfolding in Oakland, California, pits Musk against OpenAI CEO Sam Altman and President Greg Brockman, with Musk accusing them of misleading him into funding what he believed would remain a nonprofit focused on “safe” artificial intelligence for the public good.
Allegations of Broken Promises Over AI’s Future
Musk, the world’s richest man and chief executive of Tesla and SpaceX, claims he was persuaded to contribute roughly $38 million based on assurances that OpenAI would prioritize safety and humanitarian benefit over profit.
His legal team argues that the organization later shifted toward a for-profit structure to attract large-scale investment, including from Microsoft, in order to fund computing infrastructure and retain top AI talent.
OpenAI has firmly rejected those claims, arguing that Musk’s lawsuit is motivated by personal and competitive interests, particularly after his departure from the board in 2018 and the subsequent rise of competing AI ventures, including his own xAI initiative.
The company also maintains that Musk himself was not consistently focused on safety concerns during his involvement, and that he had previously shown openness to commercial restructuring.
Emails, Messages, and a ‘Fool’ Remark Presented in Court
During proceedings, jurors were shown internal communications that included a 2017 email in which Musk referred to himself as a “fool” for supporting what he believed was a strictly nonprofit structure.
Under questioning from his attorney, Steven Molo, Musk elaborated on his frustration, stating:
“I felt like they had not been honest with me.”
He also added:
“What they really wanted to do was create a for-profit where they had as much shareholder ownership as possible.”
OpenAI has countered that its transition was necessary to secure the capital required for large-scale AI development, including expensive computing resources and research funding.
Sharp Cross-Examination and Competing Narratives
On Tuesday, OpenAI’s legal counsel, William Savitt, challenged Musk with messages suggesting he had at times been open to for-profit structures and was aware of discussions involving Microsoft’s investment in the company.
The exchanges underscored the central dispute: whether OpenAI deviated from a founding promise or whether its evolution was anticipated and even discussed among its earliest backers.
Microsoft, Witnesses, and What Comes Next
A lawyer representing Microsoft is also expected to question Musk as the trial continues, highlighting the tech giant’s strategic partnership with OpenAI, which has become central to the company’s growth.
The broader witness list includes Musk’s longtime aide Jared Birchall, OpenAI co-founder Greg Brockman, and AI safety scholar Stuart Russell, whose testimony is expected to focus on broader concerns about artificial intelligence governance.
The trial, which began earlier this week, is expected to stretch on for several weeks as both sides attempt to reshape the narrative of how one of the world’s most influential AI companies evolved from its original mission.