Elon Musk walked into a federal courtroom in Oakland on Tuesday ready to argue that one of the world's most valuable private companies abandoned its founding principles, and he wants a judge to unwind the whole thing.
The billionaire co-founder testified as the opening witness in his lawsuit against OpenAI CEO Sam Altman, co-founder Greg Brockman, and Microsoft, claiming they converted a nonprofit research mission into a for-profit empire without consent. Musk's framing is stark: "It's not okay to steal a charity."
The stakes extend far beyond the courtroom. A ruling in Musk's favor could restructure OpenAI's ownership and governance, potentially removing Altman and Brockman from leadership and forcing the company's most valuable assets back to its nonprofit arm. Musk has suggested potential damages in the hundreds of billions of dollars.
Musk co-founded OpenAI in 2015 but left the board in 2018 after contributing $38 million to the nonprofit. He now leads xAI, a direct competitor in the artificial intelligence space. The lawsuit, filed in 2024, accuses the company's leadership of betraying a promise to develop AI technology for humanity's benefit rather than corporate profit.
OpenAI's legal team painted a different picture. Attorney William Savitt told the court to expect "a tale of two Elons," suggesting the plaintiff's motivations stem from regret and jealousy over abandoning the company before ChatGPT's explosive success. Russell Cohen, representing Microsoft, argued Musk only objected to OpenAI's nonprofit structure after the chatbot became a billion-dollar product.
The company maintains it spent Musk's donation appropriately. "It was spent exactly as intended and in service of the mission," OpenAI's legal team stated, calling the lawsuit a rewriting of history by someone with a vested interest in OpenAI's failure.
Before testimony began, U.S. District Judge Yvonne Gonzalez Rogers issued a sharp warning to both sides about their courtroom behavior. The judge directly addressed the combatants: "Control your propensity to use social media to make things worse outside this courtroom."
The warning came after Musk posted on X Monday night accusing Altman and Brockman of stealing a charity, calling Altman "Scam." When questioned in court the next day about the inflammatory language, Musk blamed the other side, claiming he only responded after they publicized the case on social media.
The trial is expected to run approximately four weeks. OpenAI, meanwhile, is pursuing a reported $852 billion IPO valuation in the fourth quarter, a move that would give the dispute even greater weight in financial markets.
The company faces additional legal pressure beyond this case. Florida's attorney general launched a criminal investigation into OpenAI and ChatGPT last week following a review of conversations involving the accused gunman in a 2025 shooting at Florida State University.
Author James Rodriguez: "This is one of those rare lawsuits where the outcome actually matters beyond the money, and the judge clearly knows it."
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