Story perspectives

Altman Testifies, Rejects Musk’s $150 B Lawsuit Claim

5/14/2026

Summary

Altman Testifies

OpenAI CEO Sam Altman testified in Oakland, rejecting Elon Musk’s claim that the company stole charity assets.
Altman said Musk repeatedly demanded majority control, initially asking for 90 percent equity in a for-profit arm.
Musk contributed about $38 million and now seeks roughly $150 billion in damages and Altman’s removal.
Altman warned the for-profit arm, valued over $850 billion, could be forced back to nonprofit status before an IPO.

Summary

Musk Labels

OpenAI lawyers tried to admit a “donkey’s ass” trophy as evidence after Elon Musk called Joshua Achiam a “jackass” at a 2018 all-hands meeting.
Safety executive Dario presented the trophy, inscribed “Never stop being a jackass for safety,” at the next all-hands before moving to other AI work.
During the trial Sam Altman recounted the meme episode, prompting Kevin Roose to label the award a “participation trophy in little league.”

Summary

Microsoft Court Limit

A court limit on converting OpenAI’s for-profit entity threatens governance of Microsoft’s roughly $13 billion stake.
The April revamp caps revenue-share payments and allows OpenAI to sell on any cloud, including Amazon and Google.
By end-2025, 45 % of Microsoft’s commercial obligations tie to OpenAI, prompting data-center expansion and leading analysts and investors to view the ruling as cutting Azure exclusivity value and creating a structural overhang with limited near-term revenue impact.

History

Historical Context

OpenAI began in 2015 as a nonprofit with a $1 billion pledge from founders including Sam Altman and Elon Musk. After a 2019 shift to a capped-profit model, Microsoft poured over $13 billion and took a 27% stake. The 2024 Oakland trial over a $150 billion damages claim revisits those early governance battles that once threatened OpenAI’s nonprofit status.

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Altman Testifies

OpenAI CEO Sam Altman testified in Oakland, rejecting Elon Musk’s claim that the company stole charity assets.
Altman said Musk repeatedly demanded majority control, initially asking for 90 percent equity in a for-profit arm.
Musk contributed about $38 million and now seeks roughly $150 billion in damages and Altman’s removal.
Altman warned the for-profit arm, valued over $850 billion, could be forced back to nonprofit status before an IPO.

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