Elon Musk testified on Tuesday in a major legal case concerning OpenAI, alleging that the company abandoned its founding nonprofit mission and improperly transitioned into a profit-driven enterprise.
The lawsuit, filed by Musk against OpenAI, its CEO Sam Altman, and President Greg Brockman, claims that the organisation violated its original commitment to operate as a charitable artificial intelligence research entity. Musk is seeking $150 billion in damages, arguing that the restructuring of OpenAI and its commercial partnerships constitute a breach of charitable trust.
Musk told the court that he co-founded OpenAI in 2015 with the intention of creating a nonprofit focused on safe AI development for humanity. He said he contributed early funding, recruited key personnel, and provided technical guidance, adding that the organisation was never intended to become a profit-seeking company.
“If we make it OK to loot a charity, the entire foundation of charitable giving in America will be destroyed,” Musk testified, framing the case as a broader defence of nonprofit integrity.
OpenAI’s legal team countered that Musk himself supported the company’s early commercialisation efforts and was motivated by control over the organisation. Lawyers argued that the shift toward a for-profit structure was necessary to secure computing resources and talent needed to compete with rivals such as Google DeepMind. They also noted that major investors, including Microsoft, later contributed significant funding, strengthening OpenAI’s commercial direction.
The case also highlights internal tensions over OpenAI’s evolution. Musk’s lawyer argued the organisation deviated from its original mission, while OpenAI’s counsel described Musk’s lawsuit as a response to losing influence over the company’s trajectory.
During proceedings, the presiding judge cautioned Musk over his public statements on social media regarding the case, urging restraint in extrajudicial commentary.
The trial is expected to continue with further testimony from Musk, Altman, and Microsoft leadership. The outcome could have significant implications for OpenAI’s governance structure and its planned expansion toward a potential public offering.
The dispute also underscores broader debates in the artificial intelligence sector regarding the balance between safety-oriented research and the capital-intensive demands of large-scale AI development, an area in which Musk’s own company SpaceX-linked AI venture xAI is also emerging as a competitor.