Elon Musk Testifies OpenAI Abandoned Its Nonprofit Mission for Profit

Elon Musk testified in federal court in Oakland, California, on Tuesday that he is suing OpenAI, CEO Sam Altman, and president Greg Brockman to prevent what he calls the "looting" of a charity, accusing them of abandoning the company's original nonprofit mission for profit-driven deals with Microsoft. The high-stakes trial, which began earlier this week with jury selection, stems from Musk's 2022 lawsuit alleging betrayal after he co-founded OpenAI in 2015 as an open-source nonprofit dedicated to safe AI development for the public good.

Musk, under oath for two hours, relitigated his fractured friendship with Altman, recounting how he funded and recruited talent for OpenAI out of fears of catastrophic AI risks—like a "Terminator outcome"—and rivalry with Google. According to Musk's testimony, as reported by Bloomberg and Wired, the company's shift to a for-profit structure in 2019, capped by lucrative Microsoft partnerships, turned OpenAI into a "closed-source" subsidiary, undermining charitable principles and setting a dangerous precedent for philanthropy. "It is not okay to steal a charity," Musk told jurors, echoing posts on X where he branded Altman "Scam Altman" just before the trial.

The feud has spilled beyond the courtroom, with both sides trading barbs on social media. The judge warned Musk and Altman to stop using platforms like X to inflame the case, amid years of public animosity that once saw Musk praise Altman as a hero before their split. As BBC reports, the dispute questions OpenAI's history and commitments, potentially reshaping how AI nonprofits operate amid massive investments from tech giants.

OpenAI has pushed back forcefully. In a statement, the company insisted its consumer, enterprise, and emerging ad businesses are "firing on all cylinders," despite a Wall Street Journal report—cited by Bloomberg and Business Insider—that it missed key sales and user targets, causing linked stocks to slump. OpenAI called the internal mood "incredibly positive" and growing demand strong, countering doubts about AI's profitability even as the trial spotlights its pivot.

This clash matters deeply in the AI race, where billions are pouring into development amid safety concerns. Musk, who left OpenAI in 2018 and launched rival xAI, argues the Microsoft deals enabled "rampant self-dealing" and drained nonprofit assets, per court filings. A ruling could force OpenAI to open-source technologies like GPT-4, cost it billions, or validate its for-profit model—impacting competitors, investors, and regulation.

Those affected include OpenAI's employees, Microsoft stakeholders, and the broader AI ecosystem, where growth hype meets revenue realities. Traders and scientists, as noted by Business Insider, worry the missed targets signal weaker demand, while TechCrunch highlights Musk's oath-bound retelling of old grievances adding personal drama.

What happens next remains uncertain: Altman made a surprise courtroom appearance Monday, and the trial will feature opening statements from both sides. Fast Company frames it as tech's biggest showdown, with implications for AI's future—whether altruistic roots survive profit pressures or not. The case underscores tensions between innovation speed and ethical safeguards, watched closely by the industry.