A high-stakes legal battle between Elon Musk and Sam Altman entered its second day in Oakland, California. The Tesla CEO took the stand to press claims that OpenAI strayed from its founding mission.
The dispute dates back to 2015, when OpenAI was founded as a nonprofit organization dedicated to developing artificial intelligence technologies to serve humanity. Musk, who became an early supporter of OpenAI, claims that the organization has now become a commercial business, valued at approximately $852 billion.
Musk informed the court that he made an investment of approximately 38 million dollars between 2015 and 2017 to support OpenAI’s nonprofit model. Altman lost all his trust at various points until the end of 2022, when he believed the company’s executives planned to conduct a theft operation that would take charity resources from their organization.
Musk explained his changing viewpoint through three stages: his first positive outlook, which developed into his second negative perception, and his final understanding that the initial purpose had been violated.
Lawyers representing OpenAI rejected Musk’s claims and asserted no binding commitment was there to stay as a nonprofit organization indefinitely. The defense argued Musk’s lawsuit seeks to slow OpenAI’s rapid growth while benefiting his rival AI venture, xAI, launched in 2023. The company also pushed back on assertions that Musk was promised long-term control or majority board influence.
Tensions surfaced as Musk resisted questions about early emails suggesting openness to a for-profit model. He accused opposing counsel of framing ‘trick’ questions that could mislead the jury. Judge Yvonne Gonzalez Rogers intervened at one point to press for direct answers, drawing brief laughter in the courtroom after a sharp exchange.
Also Read: Elon Musk Accuses Sam Altman of Betraying OpenAI Mission in Legal Fight
The case carries significant implications beyond the individuals involved. Musk’s lawsuit seeks to remove Altman from OpenAI’s board, which would disrupt the company’s operations and its upcoming plans to go public. A ruling in Musk’s favor will allow him to control one of the world’s leading AI institutions. At the same time, it also strengthens ongoing discussions about AI profit sharing, ethical standards, and governance systems.