Elon Musk Testifies Against OpenAI, Claims He Founded and Funded the Company
Elon Musk took the stand in federal court in Oakland, California on April 28, 2026, testifying against OpenAI CEO Sam Altman in a lawsuit that could reshape the AI nonprofit-to-for-profit conversion debate.
Musk, who co-founded OpenAI in 2015, is suing to block its conversion from a nonprofit to a for-profit entity. In testimony, he claimed to have originated the idea, proposed the name, recruited key early staff, and provided the initial funding — arguing that he would never have contributed had he known the organization would pursue private profit.
His attorney entered OpenAI's 2015 founding charter into evidence, which states the organization was "not organized for the private gain of any person" and was to pursue "open source technology for the public benefit."
Cross-examination on April 29 grew contentious: Musk repeatedly accused OpenAI's attorney of lying and attempting to mislead him. After testifying for more than seven hours across three days, Musk's portion of the trial concluded on April 30.
The case has broad implications for how nonprofits in the AI sector — which were granted enormous public goodwill, talent, and capital partly because of their stated nonprofit mission — can transition to for-profit structures without triggering legal challenges. Full coverage at CNBC.
Related Articles
The financial sector is moving faster on AI than the people meant to supervise it. A Reuters report on a Cambridge Centre survey says only 24% of regulators collect data on industry AI adoption, while 69% of respondents rely on OpenAI.
Why it matters: API availability is the moment a flagship model becomes something teams can actually wire into products. OpenAI’s developer account says GPT-5.5 brings fewer retries, and the official release page now lists API access with a 1M context window and updated pricing.
One of AI’s most important commercial contracts just loosened up. Microsoft keeps Azure’s first-stop role and long-dated IP access, but OpenAI can now sell across any cloud and Microsoft will no longer pay it a revenue share.
Comments (0)
No comments yet. Be the first to comment!