Musk Says He Built OpenAI From Scratch — Lawyers Say He Just Wanted Control

TLDR

Elon Musk testified he founded OpenAI, funded it, and recruited its key people Musk is suing OpenAI, Sam Altman, and Greg Brockman for abandoning its nonprofit mission He is seeking $150 billion in damages, with proceeds going to OpenAI’s charitable arm OpenAI’s lawyers argued Musk wanted control of the company and sued when he didn’t get it A judge warned Musk to limit social media posts after he called Altman “Scam Altman” on X

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Elon Musk took the stand on Tuesday in a San Francisco courtroom, testifying in his lawsuit against OpenAI and its leaders Sam Altman and Greg Brockman. The trial centers on whether OpenAI broke its promise to remain a nonprofit dedicated to the public good.

An email exchange from September 2017 was just shown to jurors

Musk: “Either go do something on your own or continue with OpenAI as a nonprofit.”

Altman: “I remain enthusiastic about the non-profit structure!”

The same month Brockman wrote in his diary: "i cannot believe… pic.twitter.com/VDrqrObrzE

— NIK (@ns123abc) April 28, 2026

Musk said he came up with the idea for OpenAI, recruited its early team, and provided its first funding. “I came up with the idea, the name, recruited the key people, taught them everything I know, provided all of the initial funding,” he testified.

He said he deliberately chose to structure it as a nonprofit. “It was specifically meant to be for a charity that does not benefit any individual person,” he said. “I could’ve started it as a for-profit and I specifically chose not to.”

Musk framed the lawsuit as a defense of charitable giving in the United States. “If we make it OK to loot a charity, the entire foundation of charitable giving in America will be destroyed,” he said.

He is seeking $150 billion in damages from OpenAI and Microsoft, with those proceeds directed to OpenAI’s nonprofit arm. He also wants Altman removed from the board and the company returned to nonprofit status.

OpenAI Pushes Back

OpenAI’s lead attorney William Savitt told jurors a different story. He said Musk supported a for-profit model, but only if he was in charge. When that didn’t happen, Musk launched his own AI company, xAI, in 2023.

“What he cares about is Elon Musk being on top,” Savitt said. “We are here because Mr. Musk didn’t get his way.”

Savitt also said Musk was not focused on AI safety, and had called OpenAI employees who prioritized safety “jackasses.”

OpenAI’s lawyers said the creation of a for-profit subsidiary in 2019 was necessary to compete with Google’s DeepMind and to attract top researchers.

Judge Warns Musk on Social Media

Before testimony began, U.S. District Judge Yvonne Gonzalez Rogers addressed Musk directly about posts he made on X, where he called Altman “Scam Altman” and accused him of stealing a charity.

The judge stopped short of issuing a gag order but urged Musk to limit his posts during the trial. Musk agreed. Altman also agreed to similar limits.

Microsoft attorney Russell Cohen said the company acted as “a responsible partner every step of the way.” Microsoft invested $10 billion in OpenAI in January 2023.

Musk testified that his concerns about AI safety grew after conversations with Google co-founder Larry Page, whom he said was not taking the risks seriously.

OpenAI is currently valued at over $850 billion. A potential IPO could push that figure to $1 trillion.

Musk is set to continue his testimony on Wednesday. Altman and Microsoft CEO Satya Nadella are also expected to testify.

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