Musk Testifies Against OpenAI Over Nonprofit Mission Dispute

Elon Musk took the witness stand in Oakland federal court on April 28, 2026, providing sworn testimony in a lawsuit accusing OpenAI and its leadership of abandoning the organization's nonprofit roots. Musk characterized OpenAI's shift from a nonprofit structure to a for-profit company as "one of the greatest heists in history" and argued from the witness stand that "this lawsuit is very simple: It is not OK to steal a charity."

The trial began with opening statements the same day at the U.S. District Court in Oakland. It centers on Musk's 2024 lawsuit against OpenAI, CEO Sam Altman, and co-founder Greg Brockman. Musk co-founded OpenAI in 2015, nine years before filing the suit that now pits him against his former collaborators.

The Falling Out With Google's Larry Page

Musk's testimony offered the first sworn account of his breakdown with Larry Page, Google's co-founder. According to Musk, this relationship collapse directly inspired him to create OpenAI in the first place. In their discussions about AI safety, Musk claims Page called him a "specieist" for being "pro-human" and allegedly said it would be "fine" if artificial intelligence wiped out humanity as long as AI itself survived.

Musk called Page's attitude "insane" during his court testimony. The two had once been close friends—Fortune listed them in 2016 as secretly best-friend business leaders, and Musk regularly stayed at Page's home in Palo Alto. Page had even told television host Charlie Rose that he would rather give his money to Musk than to charity.

The friendship fell apart when Musk recruited Ilya Sutskever, an AI researcher at Google, to help launch OpenAI in 2015. Page felt personally betrayed by losing this talent and stopped speaking to Musk. In a 2023 podcast with Lex Fridman, Musk said he wanted to reconcile, noting "we were friends for a very long time," but the relationship has remained broken.

This account matches a story Musk previously told to biographer Walter Isaacson, but the federal courtroom marked the first time these claims were made under oath.

What the Lawsuit Is About

The core legal dispute centers on OpenAI's shift from nonprofit status to for-profit. Musk claims this violated the organization's founding principles. Court filings show that in 2017, OpenAI and Musk agreed that moving to a for-profit structure made sense for the company's next phase. But negotiations fell apart when OpenAI refused to give Musk full control.

OpenAI rejected Musk's proposal to merge the AI lab into Tesla, his electric vehicle company. After establishing an OpenAI public benefit corporation structure in September 2017 (a legal form meant to balance profit and social mission), Musk quit the organization. OpenAI maintains they were developing a way to raise money without requiring a public stock offering, but Musk left after setting up the nonprofit framework.

During testimony, Musk accused Altman of steering OpenAI away from its nonprofit mission out of financial interest. The company's partnership with Microsoft, which funded ChatGPT's public release in late 2022, became central to Musk's argument that OpenAI abandoned its goal of developing AI for humanity's benefit.

Other Legal Fights

The Oakland trial is just one of several lawsuits between Musk and OpenAI. His AI company, xAI, filed a separate lawsuit claiming OpenAI stole trade secrets—confidential information companies keep private to stay competitive. In its response, OpenAI argues that xAI has not shown that OpenAI actually obtained xAI's secrets or that former xAI employees improperly used confidential information.

Musk dropped fraud charges against OpenAI and Altman before the current trial, focusing instead on breach of fiduciary duty—essentially, the claim that the company's leaders broke their obligation to act in the nonprofit's best interest. OpenAI asked the court to dismiss the case in October 2025, and recent filings from February 2026 show disputes over evidence destruction and requests for penalties.

This legal tangle reflects a broader shift in the AI industry, where companies are competing intensely for talent and technical breakthroughs. As stakes have risen, arguments over who owns what intellectual property and which employees can work where have become flashpoints.

What This Could Mean

Microsoft CEO Satya Nadella is expected to testify during the trial, signaling how important this case is for the AI industry's hierarchy. Microsoft's investment in ChatGPT helped spark the current AI boom that has driven stock markets to record levels, which makes the questions about corporate governance at the center of Musk's lawsuit relevant far beyond just these two companies.

The broader context here is worth noting. We have seen similar disputes before when transformative technologies created enormous wealth shifts—the commercial internet in the 1990s generated comparable tension between idealistic origins and commercial reality. However, the speed and scale of AI development, combined with the existential questions it raises about AI's role in society, have compressed these philosophical conflicts into legal battles with unprecedented financial consequences.

The trial's outcome could set precedents for how nonprofit AI research organizations can transition to for-profit structures, as other labs face similar pressure to raise private investment to scale their work. The case also exposes the personal disagreements and ideological differences that shape AI development at the highest levels.

As the trial unfolds with testimony from key industry figures, the Oakland courtroom has become an unexpected stage for debating not just corporate governance disputes, but deeper questions about how advanced AI should be developed and who should control it. The resolution may influence how future AI breakthroughs emerge from the mix of academic research, nonprofit missions, and commercial drive.