In a federal courtroom in Oakland, California, Elon Musk wrapped three days of testimony Thursday, painting OpenAI’s transformation from nonprofit lab to profit-chasing behemoth as a brazen betrayal. The Tesla and xAI CEO, who co-founded the outfit in 2015, called himself a “fool” for pumping $38 million into what he now dubs an $800 billion monster. Mashable captured Musk’s opening salvos, where he framed the stakes huge: “The consequences of this case go far beyond me. If OpenAI wins, it will establish a precedent that will give license to looting every charity … the entire foundation of charitable giving in America will be destroyed.”
Short fuse. Musk clashed hard with OpenAI lawyer William Savitt. “Your questions are not simple. They’re designed to trick me,” he snapped, likening them to the classic loaded query: “When did you stop beating your wife?” Judge Yvonne Gonzalez Rogers stepped in, scolding Musk as “at times difficult” and reminding him, “Let’s remind everyone in the courtroom that you’re not a lawyer.” He shot back that he’d taken “Law 101 in school.” Tension boiled over across the trial’s first week, post-jury selection Monday.
But rewind. OpenAI started as a counter to Google’s AI dominance—Musk testified fears of a Skynet-like takeover drove him in. He invoked Terminator repeatedly. Microsoft’s 2019 $1 billion check? Fine, he said. But the 2022 $10 billion follow-up? That’s the “bait and switch.” OpenAI’s opening salvos painted Musk’s suit as sour grapes after ChatGPT’s 2022-2023 boom left him out. And Musk? He departed in 2019, right as the nonprofit-to-for-profit pivot brewed.
Cross-examination got personal. Savitt grilled Musk on a key OpenAI document. Live, Musk claimed he’d read just the first paragraph—TL;DR, or “Too Long, Don’t Read,” he mangled it. But a 2025 deposition video played in court showed him saying otherwise. Trustworthiness under fire. Then Shivon Zilis, Musk’s ex-chief of staff and mother of four of his kids—they live together, he admitted—got name-dropped. Did she share OpenAI secrets post-departure? Musk: No recall.
Day two turned heated. Wall Street Journal reported Musk doubling down: “I was a fool who provided them free funding to create a start-up.” Nonprofit status gave OpenAI a “halo effect,” moral high ground for superintelligence work. Can’t have it both ways, he argued—reap nonprofit goodwill, then flip to for-profit. OpenAI’s William Savitt pushed back, probing Musk’s own for-profit xAI ambitions. Musk fired off that xAI had “distilled” OpenAI models for Grok—admission of competitive overlap.
Doomsday rants. Musk warned AI “could kill us all.” Judge cut him off mid-sentence. Crypto aside: “Most crypto are scams,” he tossed out, adding some have merit. New York Times live updates noted his combative streak, with OpenAI eyeing a recall. Musk seeks $150 billion plus an unwind of OpenAI’s for-profit shift, roping in Microsoft too.
So why now? OpenAI counters Musk pushed for-profit early on, then bailed when he couldn’t control it. NBC News detailed day two’s fireworks, Musk blasting Altman for ditching public benefit. Trial rolls on—Sam Altman and Microsoft CEO Satya Nadella loom as witnesses. Jury of nine weighs it all, in a case that could redraw AI’s profit-nonprofit lines.
Fragmented history. Musk funded OpenAI heavily early, then split amid governance clashes. Launched xAI in 2023 as rival. OpenAI hit valuation peaks on ChatGPT frenzy, capped structure shielding it from full Microsoft buyout. Musk’s suit, filed 2024, survived dismissal bids; judge called facts “extremely concerning.”
And the subtext? AI power struggle. Musk positions as humanity’s guardian; OpenAI as profit predators. CNBC recaps show Savitt hammering Musk’s nonprofit commitment, term sheet reads. Day four: Musk done, next witnesses up. Friday off, back Monday.
Industry watches close. Verdict could force OpenAI restructuring, chill nonprofit-to-profit flips in tech. Or vindicate them, letting scale trump origins. Musk left smirking; Altman observed silently. Courtroom emptied. Stakes? Trillions in AI value hang. No fragments here—just raw Silicon Valley grudge match.
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