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Elon Musk grilled in OpenAI trial: Alleges deception over nonprofit roots; court reviews $134 billion damages demand
Indiatimes | May 1, 2026 1:40 AM CST

Elon Musk faced sustained questioning in federal court as his legal dispute with OpenAI continued, with the billionaire asserting that the organization deviated from its founding purpose. The proceedings, held in Oakland, California, focused on Musk’s claim that the company transitioned from an altruistic initiative into a major profit-driven enterprise without aligning with its original commitments. The second day of testimony saw tense exchanges between Musk and OpenAI’s legal team as both sides presented contrasting interpretations of the company’s evolution.

Courtroom exchanges and cross-examination focusDuring the hearing, OpenAI’s lead attorney William Savitt challenged Musk’s account, aiming to question the consistency of his statements regarding the organization’s history. Musk pushed back against the questioning, stating that the queries were structured to mislead him. Savitt responded by maintaining that the questions required straightforward answers.

The cross-examination sought to counter the narrative Musk had previously outlined with his own legal counsel. The exchanges reflected a broader effort by OpenAI’s legal team to present Musk as an inconsistent source regarding the company’s founding principles and subsequent decisions.

Dispute over OpenAI’s original missionMusk, who co-founded OpenAI in 2015 alongside Sam Altman and Greg Brockman, reiterated that his involvement was based on the understanding that the organization would operate as a nonprofit. He stated that the goal was to prioritize societal benefit, with any technological developments made open source and accessible.

He told the court that his support included $38 million in funding, which he described as effectively free, and expressed regret over how the organization later evolved. According to Musk, the transformation into a for-profit entity led to the creation of a company valued in the hundreds of billions, a shift he said he did not anticipate.

Elon Musk grilled in OpenAI trial At the center of the case is Musk’s allegation that Altman did not uphold the original nonprofit commitment. However, OpenAI’s legal team presented email evidence suggesting that Musk himself had, at times, explored alternative structures and did not object to a for-profit model, provided it served the nonprofit mission.

Background motivations and strategic concernsIn earlier testimony, Musk explained that his decision to help establish OpenAI was influenced by concerns about Google and its approach to artificial intelligence. He stated that he believed stronger safeguards were needed in AI development and that a nonprofit structure would better serve public interest.



Musk’s current ventures and legal demandsFollowing his exit, Musk launched xAI, which he later merged into SpaceX. SpaceX is currently valued at $1.25 trillion, with an initial public offering anticipated in June that could rank among the largest to date.

In the ongoing case, Musk is seeking several outcomes, including a return of OpenAI to a nonprofit structure and the removal of Altman and Brockman from leadership positions.


He has also requested damages of up to $134 billion, stating that any awarded amount would be redirected to OpenAI’s nonprofit arm.

Awaiting Judicial DecisionThe case is being overseen by Yvonne Gonzalez Rogers, who is expected to rule by late May on whether OpenAI breached any commitments made to Musk during its founding. The decision will determine the next steps in a dispute that centers on governance, organizational purpose, and the future direction of one of the most influential companies in artificial intelligence.


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