Washington D.C.- Billionaire entrepreneur Elon Musk told a federal jury in Oakland, California, that he was a “fool” for providing early financial support to OpenAI, as he delivered dramatic testimony in his ongoing lawsuit against the company, its CEO Sam Altman, and President Greg Brockman.
The case, which began on April 28, 2026, has quickly become one of the most closely watched legal battles in the tech industry, centering on allegations that OpenAI shifted from a nonprofit mission to a powerful for-profit enterprise after receiving early backing from Musk and other donors.
Taking the stand on April 29, Musk said he contributed approximately $38 million in early funding to OpenAI under the belief that it would remain a nonprofit organisation dedicated to benefiting humanity.
“I actually was a fool who gave free funding for them to create a start-up,” Musk told the jury in court proceedings.
He argued that he was misled about OpenAI’s long-term structure and mission, saying he believed the organisation would remain open-source and focused on public good rather than commercial dominance.
Musk described the company’s evolution as a “bait and switch,” claiming that his early contributions were used to build what he now sees as an $800 billion commercial giant.
The lawsuit, formally known as Musk v. Altman, accuses OpenAI leadership of abandoning the nonprofit mission it was founded on. Musk is seeking up to $150 billion in damages, though he has said he would direct any awarded funds to OpenAI’s charitable arm rather than keep the money personally.
He is also asking the court to force OpenAI to revert to nonprofit status, reverse its for-profit restructuring, remove Sam Altman and Greg Brockman from leadership roles
Musk claims the transformation of OpenAI represents one of the most significant betrayals in modern tech history.
At the core of his argument is the allegation of breach of charitable trust, with Musk insisting that his donations were intended for public benefit, not private enrichment.
Musk’s testimony focused heavily on what he described as deception by OpenAI’s leadership. He argued that he was assured the organisation would remain aligned with its founding principles, only to later see it evolve into a commercial powerhouse backed by billions in corporate investment.
One of his strongest claims relates to OpenAI’s partnership with Microsoft, which invested approximately $10 billion in 2023.
Musk said this moment marked a turning point in his view of the company, describing it as evidence that OpenAI was being “looted” from its nonprofit roots for private gain.
He told the court that his trust in Altman broke when the Microsoft deal expanded.
OpenAI’s legal team, led by attorney William Savitt, pushed back strongly against Musk’s claims, arguing that no binding agreement ever existed requiring the organisation to remain a nonprofit indefinitely.
The defence described Musk’s lawsuit as a “pageant of hypocrisy” and a strategic move driven by competition rather than principle.
According to OpenAI’s lawyers, internal communications show that Musk himself once explored for-profit structures and even discussed scenarios where he could hold majority control or merge the organisation with Tesla.
They argued that Musk’s legal action only began after he failed to gain influence over OpenAI’s direction and after his own AI company, xAI, fell behind in the rapidly evolving artificial intelligence race.
The trial has become a clash of two competing narratives.
Musk’s version paints him as a donor who helped launch a humanitarian project that later abandoned its founding values. He argues that OpenAI exploited early charitable funding to build a dominant commercial entity.
OpenAI, on the other hand, claims it has followed a necessary path to scale artificial intelligence research responsibly, arguing that massive funding was required to compete globally and advance the technology.
The company insists there was never a promise to remain a nonprofit forever and says Musk’s expectations do not reflect any formal agreement.
Musk’s lawsuit also includes allegations of unjust enrichment, arguing that OpenAI and Microsoft have benefited from hundreds of billions of dollars in value built on foundations he helped establish.
He claims that early contributions from him and other supporters created the conditions for OpenAI’s success, but that the financial rewards have since been captured by private investors.
OpenAI and Microsoft deny these claims, insisting that their success is the result of independent innovation, investment, and research expansion.
Musk’s own company, xAI, has positioned itself as a direct rival to OpenAI, adding another layer of complexity to the dispute.
OpenAI’s lawyers argue that Musk’s legal action is motivated in part by this rivalry and the desire to slow down a competitor that has gained significant market dominance.
The trial is expected to last approximately three weeks and includes a nine-person advisory jury whose verdict will not be binding but will help guide a final decision by a U.S. District Judge
