A high-stakes courtroom battle between Elon Musk and Sam Altman has begun in California, with both sides offering sharply different accounts of OpenAI’s origins and mission.
Taking the stand, Musk framed the case as a fight to protect the integrity of charitable organisations. “It’s not okay to steal a charity,” he said, warning that such actions could undermine trust in philanthropy.
OpenAI’s legal team pushed back strongly, arguing that the lawsuit is driven by rivalry rather than principle. Lawyer William Savitt told jurors that Musk is attempting to damage a competitor after failing to gain control of the company.
Musk’s lawyer, Steven Molo, urged the nine-member jury in Oakland to remain impartial, stressing that Musk’s involvement in AI stems from longstanding concerns about regulation and the technology’s risks. He highlighted Musk’s early role in OpenAI, including donations totalling $38 million when it operated as a non-profit. “Without Elon Musk, there would be no OpenAI,” Molo said.
At the heart of the dispute is OpenAI’s 2018 decision to establish a commercial arm, years before launching ChatGPT, a move Musk claims violated its original non-profit mission. His lawsuit alleges breach of charitable trust and unjust enrichment, and seeks billions of dollars in damages to be redirected to OpenAI’s non-profit arm. He is also pushing for leadership changes, including Altman’s removal.
OpenAI, however, argues that Musk supported the shift at the time and only walked away after failing to secure a leadership role. The company further claims Musk attempted to merge OpenAI with Tesla and resorted to legal action after being rebuffed.
The dispute also reflects intensifying competition in the AI sector. OpenAI alleges Musk is trying to slow a rival as the race toward advanced AI accelerates, particularly as his own venture, xAI, works to gain ground after launching its chatbot Grok in 2023.
Judge Yvonne Gonzalez Rogers has warned both sides against using social media to influence proceedings but declined to impose a gag order. Musk had earlier referred to Altman as “Scam Altman” on his platform, X.
Altman is expected to testify as the trial continues, with a verdict anticipated in late May.
