The Musk Vs. OpenAI Trial Is Underway — Here's Where Things Stand
One week into the Elon Musk vs. OpenAI trial, Musk claims Sam Altman and Greg Brockman betrayed the company's nonprofit founding mission for personal profit. Musk seeks $134 billion in damages, removal of Altman and Brockman, and an unwinding of OpenAI's restructuring. OpenAI counters that Musk knew about the for-profit structure and is attacking a rival while building his own competing AI company, xAI.
Summary
The trial between Elon Musk and OpenAI is one week underway, with both Musk and OpenAI CEO Sam Altman present in an Oakland courthouse. The central dispute is whether Altman betrayed OpenAI's founding promise to operate as a nonprofit 'for the benefit of all humanity.' Musk accuses Altman and President Greg Brockman of using his funding and prestige to build what is now an $800 billion company they personally profit from. The lawsuit has been narrowed to two claims: breach of charitable trust and unjust enrichment.
On the stand, Musk took significant credit for OpenAI's creation, claiming he conceived the idea, recruited key personnel, provided initial funding, and shaped the organization's safety-focused mission. He stated he could have launched a for-profit venture but deliberately chose not to, and that he wanted OpenAI to make society resemble Star Trek rather than The Terminator. Musk also cited concerns about Google's dominance in AI following its acquisition of DeepMind, and alleged that Google co-founder Larry Page dismissed his AI safety concerns by calling him 'speciesist' for being too pro-human.
Musk identified a key turning point when OpenAI removed its internal profit caps and accepted a $10 billion investment from Microsoft, calling this the moment they 'stole the charity.' Courtroom exchanges were combative, with Musk accusing opposing counsel of asking trick questions and lying to the jury.
OpenAI's defense argues that Musk was aware of and sometimes supported a for-profit structure, and is now weaponizing the courts against a competitor while developing his own AI company, xAI. Musk is seeking $134 billion in damages — which he claims he will donate back to the OpenAI charity — along with the removal of Altman and Brockman and an unwinding of the company's recent restructuring, moves that could complicate OpenAI's anticipated IPO. The case features an advisory jury, but Judge Gonzalez Rogers will make the final decisions on liability and remedies. Testimony from Altman, Brockman, Microsoft CEO Satya Nadella, and early OpenAI employees is expected over the coming weeks.
About this episode
One week into the Musk vs. OpenAI trial, the central question is whether Sam Altman betrayed the company's founding promise to benefit humanity by turning it into an $800 billion for-profit giant. Musk claims they "stole a charity." OpenAI says he's using the courts to attack a rival while building his own competing AI company. With Altman, Satya Nadella and Greg Brockman still to testify, the outcome could threaten OpenAI's highly anticipated IPO. CNBC's Kate Rooney recaps the first week. Reporter Kate Rooney Produced by Jeffrey Kopp Edited by Erin Black, Andrew Evers » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Want to get ahead at work? Then you need to learn how to make effective small talk. In CNBC’s new online course, How To Talk To People At Work, expert instructors teach you how to use everyday conversation to gain visibility, build meaningful relationships and advance your career. Use coupon code EARLYBIRD for 20% off. Offer valid from April 20, 2026 to May 4, 2026. Terms apply. https://cnb.cx/4sGlSkh Connect with CNBC News Online Get the latest news: https://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC Follow CNBC News on Facebook: https://cnb.cx/LikeCNBC Follow CNBC on Threads: https://cnb.cx/threads Follow CNBC News on X: https://cnb.cx/FollowCNBC Follow CNBC on WhatsApp: https://cnb.cx/WhatsAppCNBC #CNBC The Musk Vs. OpenAI Trial Is Underway — Here's Where Things Stand
Key Insights
- Musk claimed he was solely responsible for OpenAI's foundation, stating 'I came up with the idea, the name, recruited the key people, taught them everything I know, and provided all of the initial funding,' framing his decision to build it as a nonprofit as a deliberate and principled choice.
- Musk identified the moment OpenAI removed its internal profit caps and accepted a $10 billion Microsoft investment as the precise point the organization betrayed its charitable mission, calling it when they 'stole the charity.'
- OpenAI's defense argues that Musk's lawsuit is not about charitable mission but about competitive rivalry, claiming Musk knew about and at times supported a for-profit structure while now using the courts to attack OpenAI as he builds his own competing AI company, xAI.
Topics
Transcript
[0:00] We are one week into the high profile trial between Elon Musk and OpenAI. Here's where things stand. Elon Musk, the world's richest man, was a co-founder of OpenAI. He and the now CEO, Sam Altman, were friends a decade ago, and both were in the Oakland courthouse this week as we started to get two sides to this story. At the heart of this case, whether Altman betrayed OpenAI's founding promise to build the company as a nonprofit quote for the benefit of all humanity, Musk accuses Altman and President Greg Brockman of tricking him, using his [0:31] funding and prestige to build an $800 billion company they now allegedly profit from. Personally, the lawsuit has been whittled…
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