Full Breakdown
Musk v. Altman: Trial Over OpenAI’s Non-Profit Roots
4/29/2026, 7:59:57 PM
The Trial Begins
On April 28-29 2026, a federal jury in the Ronald V. Dellums Courthouse, Oakland, heard opening arguments in Elon Musk’s civil suit against OpenAI, its chief executive Sam Altman, president Greg Brockman, and investor Microsoft Corp. Judge Yvonne Gonzalez Rogers presided. Musk alleges the company abandoned its 2015 charitable charter, seeking $150 billion in damages, the return of “ill-gotten gains,” and the removal of Altman and Brockman from governance.
From Non-Profit Lab to Billion-Dollar Enterprise
OpenAI was founded in 2015 by Musk, Altman, Brockman, Ilya Sutskever and others as a nonprofit “to benefit humanity.” Internal emails show Musk discussed a for-profit adjunct as early as 2017. He left the board in 2018 after disputes over control. In 2019 the founders created a capped-profit subsidiary; by 2022 OpenAI signed a multibillion-dollar partnership with Microsoft, and in 2023 it restructured as a public-benefit corporation valued at $730-$852 billion. Musk launched the rival for-profit venture xAI in 2023.
Principal Parties
- Elon Musk – CEO of Tesla, SpaceX, and xAI; contributed roughly $38-$44 million to OpenAI’s seed funding.
- Sam Altman – OpenAI CEO since 2019.
- Greg Brockman – OpenAI president and co-founder.
- Microsoft Corp. – Investor of $2-$10 billion, licensing partner for OpenAI’s models.
- Steven Molo – Musk’s lead attorney.
- William Savitt – Lead counsel for OpenAI.
Numbers at Stake
- Damages sought: $150 billion (other reports cite $134-$130 billion).
- Company valuation: $730 billion (Reuters) to $852 billion (The Conversation).
- Musk’s contributions: $38 million (Reuters) to $44 million (The Conversation).
- Microsoft investment: $2 billion (Reuters) to $10 billion (multiple sources).
Why the Case Could Reshape AI
If the jury finds OpenAI liable, a court order could unwind the for-profit conversion, force Altman’s removal, and redirect billions to the OpenAI charitable arm. The outcome may set precedent for how philanthropic tech ventures may pivot to commercial structures, affect OpenAI’s planned IPO (potentially $1 trillion), and influence broader debates on AI governance and concentration of power.
Official Statements
Musk told jurors, “It’s not okay to steal a charity,” framing the suit as a defense of charitable law. OpenAI’s Savitt replied that the case is “a jealous bid to derail a competitor” and that Musk “didn’t get his way.” Microsoft’s representative described the firm as “a responsible partner every step of the way.” Judge Rogers admonished both parties to curb social-media commentary during the proceedings.
Opposition and Legal Outlook
OpenAI argues Musk supported the for-profit shift and only sued after losing a power struggle. Legal analysts cited in the Atlantic note that Musk is “unlikely to win all or even much of this,” given the complexity of charitable-trust claims.
Conflicting Figures and Open Questions
Sources differ on the exact damage figure ($130-$150 billion), OpenAI’s valuation ($730-$852 billion), Musk’s total donations ($38-$44 million), and Microsoft’s investment ($2-$10 billion). The court has not clarified which contractual provisions govern the 2015 charter, leaving a key factual gap.
Verbatim Quotes
- “It’s not okay to steal a charity.” — Elon Musk, witness
- “If you have someone that’s not trustworthy in charge of AI,” — Elon Musk, witness
- “we are here because Mr. Musk didn't get his way with OpenAI.” — William Savitt, OpenAI lawyer
- “They enriched themselves, they made themselves more powerful, and they breached the very basic principles on which the charity was founded,” — William Savitt, OpenAI lawyer
- “came up with the idea, the name, recruited the key people, taught them everything I know, provided all of the initial funding” — Elon Musk, witness
Next Steps
The trial is slated for three weeks; Altman, Brockman, and Microsoft CEO Satya Nadella are expected to testify. The jury will deliver an advisory verdict by mid-May, after which Judge Rogers will consider remedies, including possible unwinding of OpenAI’s for-profit structure and implications for its upcoming IPO.
