Elon Musk stared down the courtroom in Oakland, California, and called himself a fool. “I was a fool who provided them free funding to create a start-up,” he told the jury on April 30, 2026. “I gave them $38 million of essentially free funding to create what would become an $800 billion company.”
Those words capped three days of testimony in a high-stakes federal trial pitting Musk against OpenAI co-founders Sam Altman and Greg Brockman, plus Microsoft. Musk, who co-founded OpenAI in 2015 as a nonprofit to counter Google’s AI dominance, now accuses the company of abandoning its mission for profit. He wants $150 billion in damages, OpenAI’s for-profit arm unwound, and Altman ousted from the board.
The case unfolds at the Ronald V. Dellums U.S. Courthouse. Judge Yvonne Gonzalez Rogers presides. She has kept the focus narrow—on founding agreements and operations, not AI doomsday scenarios. “We are not going to get into issues of catastrophe and extinction,” she ruled early on.
Musk’s regrets run deep. From 2016 to 2020, he funneled $38 million into OpenAI, covering rent for San Francisco offices even after quitting the board in early 2018. Tesla faced production hell. SpaceX gained speed. Musk skipped board meetings. Still, he donated—60 times, his family office head Jared Birchall testified. Birchall revealed Musk’s failed $97.4 billion bid last year to buy OpenAI’s assets and “prevent the diminishment of the value of the foundation.”
OpenAI lawyers pounced. William Savitt, representing the company, grilled Musk on contradictions. Musk admitted reading part of a key OpenAI document, flipping his September 2025 deposition claim. He denied tweaking X’s algorithm to boost his posts, despite 2023 complaints. On AI “distillation”—training models on rivals’ outputs—he said, “Generally A.I. companies distill other A.I. companies.” Did xAI do it? “Partly,” Musk replied.
Tensions boiled. Musk labeled Savitt’s questions “leading.” The judge shot back: “He can lead. That’s not how it works. Let’s remind everyone in the courtroom that you’re not a lawyer.” Musk quipped, “I am not a lawyer. Well, technically I did take Law 101 in school.” Laughter rippled through the room. As he exited, Musk invoked The Terminator on AI risks.
OpenAI’s For-Profit Pivot Fuels the Fight
Everything traces to OpenAI’s origins. Launched December 2015 as a 501(c)(3) nonprofit, it promised safe AGI for humanity’s benefit. Musk provided seed cash. Altman and Brockman led operations. By 2019, Microsoft poured in billions. Last year, OpenAI spun up a for-profit entity, still overseen by the nonprofit. Commercial hits like ChatGPT followed. Valuation soared.
Musk claims breach. “You just can’t steal a charity,” he snapped. OpenAI counters that Musk knew of for-profit talks as early as 2017—a proposed email floated him 55% equity in a capped-profit arm. He balked then, walked away. Why sue only after ChatGPT’s boom? Lawyers for OpenAI and Microsoft, including Russell Cohen, hammered that point: Musk monitored from afar, even praised partnerships publicly until 2023.
Altman and Brockman sat together, eyes fixed on Musk. Altman later told a reporter, “I hope you enjoy this,” per The New York Times live updates. The trial, now in its first week after jury selection on April 27, runs a month. An advisory jury weighs facts; the judge decides remedies.
Recent coverage amplifies the drama. CNBC detailed day two takeaways: Musk framed OpenAI as an antidote to Google. Reuters captured Musk accusing Savitt of tricks. Fox Business noted a 2017 email where Musk first called himself a fool for funding amid doubts.
On X, buzz exploded. The New York Post posted: “Elon Musk testifies he was a ‘fool’ to invest with ‘disingenuous’ OpenAI CEO Sam Altman.” Users shared clips of Musk’s barbs, trial sketches.
Stakes tower over one grudge. OpenAI eyes an IPO. A win for Musk could force restructuring, cripple its model, shift AI power dynamics. His xAI competes directly. Tesla paused AGI pursuits, Musk testified—contradicting recent posts. OpenAI curtailed open-sourcing as models grew potent, per a 2017 Musk email.
But Musk affirmed his for-profits—SpaceX, Tesla, Neuralink, xAI—serve society. OpenAI’s nonprofit still funds charity; Musk admitted ignorance of its details. “I am not on the board of directors… I am not aware of everything the nonprofit does.”
Lawyers clashed on evidence. OpenAI moved to strike Birchall’s bid testimony. Judge rules Friday. Musk stepped down but could return. Trial resumes Monday.
This isn’t just personal. It’s a reckoning for AI governance. Two titans who built OpenAI now battle over its soul. Musk regrets his bet. Altman pushes ahead. Jurors decide credibility. History hangs in the balance.
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