By Elsie Kamsiyochi
A high-stakes courtroom battle between OpenAI and billionaire entrepreneur intensified on Tuesday as OpenAI Chief Executive firmly denied accusations that he betrayed the company’s founding mission.
The case, unfolding in federal court in Oakland, California, could shape the future direction of OpenAI and influence how some of the world’s most powerful artificial intelligence companies are governed.
At the center of the legal fight is Musk’s claim that OpenAI abandoned its original promise to develop artificial intelligence for the benefit of humanity. Musk, who helped establish OpenAI and contributed roughly $38 million during its early years, argues that the organization shifted away from its nonprofit ideals and evolved into a profit-driven enterprise that now prioritizes commercial success over public good.
Speaking under oath, Altman strongly rejected Musk’s accusations, calling the suggestion that he and OpenAI President had effectively “stolen a charity” both inaccurate and difficult to understand. Altman told jurors that such a description did not align with reality or with OpenAI’s mission, insisting that the organization’s nonprofit roots remain central to its long-term vision.
Altman emphasized that OpenAI’s unusual structure was designed to ensure that any financial success generated by the company would ultimately benefit the nonprofit organization overseeing its mission. According to him, the stronger OpenAI becomes commercially, the more resources and influence its nonprofit arm will have in advancing artificial intelligence responsibly and safely.
The dispute traces back to a lawsuit Musk filed in August 2024, accusing OpenAI leadership of misleading him about the company’s future. Musk alleges he was persuaded to support the startup financially under the belief it would remain dedicated to serving humanity rather than becoming a major profit-seeking corporation. He claims assurances were made that OpenAI would maintain nonprofit principles even while exploring alternative funding arrangements.
During testimony, Altman pushed back against the narrative that OpenAI was ever Musk’s company alone. He explained that in its early years, the organization experimented with multiple corporate structures as executives searched for a sustainable way to fund increasingly expensive AI research. At the time, he said, no one anticipated the enormous financial requirements that modern artificial intelligence systems would eventually demand.
“We had no real expectation of future profits or revenue,” Altman reportedly testified, describing OpenAI’s earliest years as mission-driven rather than commercially focused.
The courtroom drama has evolved into a broader clash of personalities and competing visions for the future of AI. Musk has positioned himself as someone warning the public about the risks of unchecked artificial intelligence and concentrated corporate power. Through his AI venture, xAI, he has increasingly criticized OpenAI’s close partnerships with major technology investors and its pursuit of rapid expansion.
OpenAI, meanwhile, argues that Musk was fully aware of discussions about creating a for-profit structure and only turned against the company after losing influence within it. Lawyers representing OpenAI claim Musk sought greater control over the organization but faced resistance from leadership.
Altman testified that Musk’s desire for control made him uncomfortable, suggesting tensions over leadership emerged long before legal action was filed. According to OpenAI’s defense, Musk’s lawsuit reflects frustration at no longer being involved in a company that has become one of the most valuable and influential players in artificial intelligence.
The stakes of the lawsuit are enormous. Musk is seeking approximately $150 billion in damages from OpenAI and software giant , one of OpenAI’s biggest investors. Rather than financial compensation for himself, Musk wants those funds directed to OpenAI’s nonprofit entity. He is also seeking the removal of Altman and Brockman from their leadership positions.
Adding another twist to the case, OpenAI Chairman testified that OpenAI received a takeover proposal in early 2025 from a group led by Musk’s AI company, xAI. Taylor said he found the proposal surprising, noting what he viewed as an apparent contradiction between Musk’s criticism of commercialization and an attempt by for-profit investors to acquire OpenAI’s nonprofit assets.
The trial has already featured testimony from several major figures in the AI world. Former OpenAI chief scientist recently testified that he spent nearly a year collecting concerns about Altman’s leadership, alleging a pattern of dishonesty. Meanwhile, Microsoft CEO defended Microsoft’s investment in OpenAI as a calculated but necessary risk in a rapidly evolving technological landscape.
Other witnesses have included former OpenAI technology chief and former board member , further highlighting the deep divisions and competing loyalties surrounding one of Silicon Valley’s most influential organizations.
Earlier in the trial, Musk warned that placing artificial intelligence under leaders he considers untrustworthy could have consequences far beyond Silicon Valley. He argued that the future of AI development carries immense risks for society and said transparency and accountability are critical.
As testimony nears its conclusion, jurors may begin deliberating as early as next week. The outcome could have lasting consequences not only for OpenAI’s leadership but also for the broader debate over who should control the future of artificial intelligence — nonprofits, corporations, or a balance between the two.
Source: Reuters
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