Elon Musk testifies OpenAI co-founders betrayed founding mission by turning for-profit.

Elon Musk took the witness stand on Tuesday in a federal courtroom in Oakland, California, testifying that he co-founded OpenAI as a nonprofit to counter Google's dominance in AI and prevent a dystopian "Terminator outcome" for humanity. He accused OpenAI's CEO Sam Altman and president Greg Brockman of betraying that mission by shifting the company toward a for-profit model, calling it "stealing a charity" that sets a dangerous precedent for philanthropic efforts worldwide.

The trial, which began with jury selection and opening arguments, stems from Musk's 2024 lawsuit against OpenAI, Altman, Brockman, and Microsoft. Musk, who invested around $38 million in the startup's early days between 2016 and 2020, left OpenAI's board in 2018 after clashing with co-founders over its direction, including his unsuccessful push to merge it with Tesla or place it under his for-profit leadership. According to Musk's lead attorney Steven Molo, without Musk's involvement, "there would be no OpenAI," and the defendants have made a mockery of its public mission.

OpenAI's defense counters that Musk always knew a for-profit arm was necessary to fund the massive investments required for advanced AI development, pointing to internal discussions and his own past acknowledgments. The company restructured in 2019 by creating a for-profit affiliate and further evolved last fall into a public benefit corporation, where its nonprofit arm holds a 26% stake plus warrants tied to valuation targets, alongside investors like Microsoft. OpenAI lawyers argue Musk is sour because he departed before ChatGPT's explosive success, framing his suit as a bid to kneecap a rival while boosting his own AI ventures like xAI.

Musk's testimony relitigated his personal history—from his South African upbringing to building companies like Tesla and SpaceX—positioning himself as a protector of humanity driven by fears of unchecked AI. He told the nine-person advisory jury the case is simple: it's not personal but about upholding charitable commitments, with broader stakes for how nonprofits can pivot without "looting" their missions. U.S. District Judge Yvonne Gonzalez Rogers has warned both sides to avoid inflaming tensions on social media, where their feud has long simmered through public jabs.

The lawsuit alleges breach of charitable trust, unjust enrichment, and aiding that breach against Microsoft, which invested billions in OpenAI after Musk's exit and denies any wrongdoing. Musk seeks Altman and Brockman's removal, plus over $150 billion in damages—calculated by attributing 50% to 75% of the nonprofit's stake to his contributions—which he says he would donate back to OpenAI's nonprofit entity.

This showdown between two AI pioneers, once allies, could reshape OpenAI's structure and influence how tech nonprofits balance missions with commercial needs amid the AI boom. Tech observers note the trial's potential to set precedents for charitable giving in high-stakes industries, affecting donors, startups, and investors globally. As proceedings continue, all eyes are on whether the jury buys Musk's savior narrative or OpenAI's account of pragmatic evolution.