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I was a fool for funding OpenAI, Musk tells court
30 Apr 2026

Elon Musk said that he was a "fool" for funding OpenAI in its early days.

The revelation came during his testimony in a trial against the artificial intelligence company, its co-founders, and Microsoft.

Musk said he gave $38 million in "essentially free funding" to help create what would become an $800 billion company.

Musk's testimony reveals his concerns about OpenAI's transition
Trial details

Musk's testimony focused on his concerns about OpenAI's transition from a nonprofit to a for-profit model.

He said he was okay with the change as long as the nonprofit remained in charge.

Now, he regrets not being more involved before leaving the lab and providing initial funding.

The trial is expected to last a month, with Musk seeking $150 billion in damages and asking OpenAI to dissolve its newly created for-profit company.

Lawsuit focuses on 'unjust enrichment' and 'breach of charitable trust'
Legal strategy

Initially, Musk had claimed that OpenAI CEO Sam Altman and President Greg Brockman had fraudulently induced him to fund what was supposed to be a charitable effort. However, this part of the lawsuit has been dropped.

The case now focuses on "unjust enrichment" and "breach of charitable trust."

Even if Musk proves he was duped by Altman and Brockman, legal scholars question whether Musk has standing to sue them for restructuring the company into a for-profit subsidiary.

California attorney general's stance on Musk's lawsuit
AG response

About a year ago, the California attorney general had said that Musk's lawsuit did not show a clear public interest component and suggested that he had selfish motives.

However, Musk's lawyers argued this was a misunderstanding.

They clarified that Musk doesn't want to own OpenAI; he just wants it to revert back to being a charity.

Musk seeks sweeping changes at OpenAI
Remedies sought

Musk has asked for Brockman and Altman to be removed from their positions, $130 billion to be transferred from the for-profit corporation to its nonprofit foundation, and for OpenAI to revert back into a nonprofit.

Notably, his AI company xAI is technically a competitor of OpenAI but much smaller in size.

The trial is being watched by a nine-person jury but its verdict will be purely advisory.