Story perspectives

Musk Sues OpenAI for $150 B, Trial Threatens IPO

4/29/2026

Summary

Musk Sues OpenAI

Musk testified in Oakland, California, suing OpenAI for converting its nonprofit into a for-profit.
He seeks $150 billion in damages and the return of alleged “ill-gotten gains” after giving about $38 million to OpenAI, now worth $852 billion.
William Savitt said Musk wanted control of a for-profit arm, left when denied, and is suing to protect xAI.
The three-week trial before a nine-person jury could affect OpenAI’s IPO and set a governance precedent.

Summary

Musk Limits

Judge Yvonne Gonzalez Rogers urged Elon Musk to curb his social-media posts and, while reluctant to issue a gag order, asked Musk and Sam Altman to limit their social-media use.
Jurors include nurses, city workers and retirees, reflecting a cross-section of ordinary Californians.
The trial will run about three weeks, with deliberations on May 12 and remedy arguments on May 18 if liability is found.

History

Historical Context

In 2019 OpenAI converted from a nonprofit to the capped-profit OpenAI LP, raising $130 million of its pledged $1 billion and securing a $1 billion investment from Microsoft. After Musk left the board in 2018, he filed a February 2024 lawsuit claiming the new structure violated the original agreement and that his $45 million contribution was misused. The case revives debate over nonprofit-to-profit transitions that began with the 2019 restructuring.

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Musk Sues OpenAI

Musk testified in Oakland, California, suing OpenAI for converting its nonprofit into a for-profit.
He seeks $150 billion in damages and the return of alleged “ill-gotten gains” after giving about $38 million to OpenAI, now worth $852 billion.
William Savitt said Musk wanted control of a for-profit arm, left when denied, and is suing to protect xAI.
The three-week trial before a nine-person jury could affect OpenAI’s IPO and set a governance precedent.

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