Testifying in federal court in Oakland, California, Altman denied claims made by Musk that OpenAI’s leadership transformed the artificial intelligence company from a nonprofit focused on humanity into a commercial enterprise driven by money and corporate ambition.
The lawsuit, originally filed by Musk in August 2024, centers on accusations that OpenAI and its executives betrayed the organization’s founding principles after convincing Musk to contribute roughly $38 million in its early years. Musk argues that the company shifted away from its nonprofit roots once it became commercially successful, particularly following the explosive rise of ChatGPT.
The trial, now entering its third week, is widely viewed as one of the most consequential legal confrontations in the AI industry. Its outcome could shape the future governance of OpenAI as the company reportedly explores a potential public listing that analysts believe could eventually value the business at nearly $1 trillion.
Under questioning from his attorney, Altman dismissed Musk’s allegation that he and OpenAI President Greg Brockman attempted to “steal a charity.”
“It feels difficult to even wrap my head around that framing,” Altman told the court, adding that he hoped “as OpenAI continues to do well, the nonprofit will do even better.”
Musk’s legal team, however, has sought to paint Altman as deceptive and power-driven. During earlier testimony, Musk warned the court about the dangers of untrustworthy leadership in artificial intelligence.
“If you have someone who is not trustworthy in charge of AI, I think that’s a very big danger for the whole world,” Musk testified.
The billionaire entrepreneur is seeking approximately $150 billion in damages from OpenAI and Microsoft, one of OpenAI’s largest investors. Musk wants the money directed to the nonprofit arm of OpenAI and is also seeking the removal of Altman and Brockman from leadership positions.
At the center of the dispute is OpenAI’s transition to a for-profit structure. The organization was founded in 2015 by a group of technology leaders, including Musk and Altman, with the stated mission of developing artificial intelligence for the benefit of humanity.
OpenAI’s legal team argues that Musk was fully aware of plans to create a commercial arm before he left the company’s board in 2018. According to the company, Musk not only supported the idea at the time but also sought majority control over the organization. OpenAI officially launched its for-profit entity in March 2019.
Asked directly whether Musk opposed the plan, Altman replied: “Quite the opposite.”
Altman testified that Musk at one point demanded a 90% ownership stake in OpenAI, a proposal he said made him “extremely uncomfortable.” According to Altman, Musk later reduced those demands, but concerns about concentrated control remained.
“I had quite a lot of experience with startups, had seen a lot of control fights,” Altman said, referencing Musk’s leadership style at SpaceX as an example of founders consolidating long-term authority.
Altman also revealed that discussions once took place about potentially merging OpenAI with Tesla, Musk’s electric car company. However, he said he ultimately opposed the idea because it risked compromising OpenAI’s broader mission.
“I don’t think we would have had the ability to ensure that our mission was acted on,” Altman testified. “Fundamentally, Tesla needs to serve its customers and sell cars.”
During cross-examination, Musk’s attorney Steven Molo aggressively challenged Altman’s credibility, citing testimony from former OpenAI officials and board members who allegedly described a “toxic culture of lying” within the organization.
“Have you misled people when you do business?” Molo asked.
“I believe I am an honest and trustworthy business person,” Altman replied.
When pressed again, Altman answered: “I do not think so.”
The courtroom showdown has evolved into a broader debate about the future of artificial intelligence, corporate power and accountability in Silicon Valley. Musk has increasingly positioned himself as a public advocate warning against unchecked AI development, while criticizing major tech firms for prioritizing profits over safety.
OpenAI executives, meanwhile, argue that the enormous costs associated with developing advanced AI systems made large-scale private investment unavoidable. Altman testified that OpenAI has raised roughly $175 billion from investors over its lifetime to support research and computing infrastructure.
Altman also reflected on the atmosphere within OpenAI following Musk’s departure from the company. While some employees feared Musk’s exit could hurt fundraising efforts, others reportedly felt relieved.
“I don’t think Mr. Musk understood how to run a good research lab,” Altman said. “He had demotivated some of our most key researchers.”
Separately, OpenAI chairman Bret Taylor testified that OpenAI received a formal takeover proposal in February 2025 from a consortium led by Musk’s AI company xAI.
“I was surprised,” Taylor told the court. “This proposal was to acquire this non-profit by a group of for-profit investors, which felt contradictory to the spirit of the lawsuit.”
Several prominent figures have already testified during the trial, including former OpenAI chief scientist Ilya Sutskever, who claimed he spent nearly a year collecting evidence about what he described as Altman’s “consistent pattern of lying.” Satya Nadella also appeared in court, describing Microsoft’s multibillion-dollar investment in OpenAI as a “calculated risk.”
The proceedings are expected to conclude this week, with jurors potentially beginning deliberations by May 18. Any remedies or penalties would ultimately be decided by U.S. District Judge Yvonne Gonzalez Rogers.