OpenAI case heats up: Elon Musk and Sam Altman face off in high-stakes trial

The legal fight between Elon Musk and Sam Altman has quickly turned into one of the most closely watched cases in the tech space right now. At the centre of it is OpenAI and a bigger question around how it was supposed to operate versus what it has become today. Also Read: After XChat, Elon Musk plans X Money for payments and banking: What you need to know

The case goes back to a lawsuit Musk filed in 2024, where he argued that OpenAI isn’t the same organisation it started out as. It was originally set up as a nonprofit with the idea of building AI for the benefit of everyone, but over time, it has moved towards a structure that also includes a for-profit side. Also Read: After ChatGPT, is Sam Altman now building a smartphone?

The trial began on April 27, 2026, with both sides presenting their arguments in court. Musk took the stand as one of the first witnesses, while Altman and other executives have also been part of the proceedings. Also Read: OpenAI CEO Sam Altman warns against AGI: How it could reduce jobs and affect income

What the trial is about

The main argument from Musk’s side is that OpenAI has shifted from being a nonprofit to operating in a way that prioritises profit. He has claimed that this goes against what was originally agreed upon when the organisation was founded.

Musk has also argued in court that OpenAI was meant to act as a counterbalance to large tech companies and keep AI development safe and open. According to his testimony, he was not against having a for-profit arm. His issue was about control. He believed that any such structure should still remain under the nonprofit and not take over the broader direction of the organisation.

He has also sought major changes through the case, including the removal of Altman and Greg Brockman from leadership roles, along with financial damages that could go up to $150 billion.

What Musk said during testimony

While on the stand, Musk spoke about his role in founding OpenAI and why he backed it in the first place. He said the idea was to ensure that artificial intelligence does not end up being controlled by a few players.

He also spoke about earlier discussions with figures like Larry Page, which he said influenced his concerns around AI safety.

Musk told the court that he was closely involved in early funding, recruitment, and direction of the company, and believed everyone was aligned on keeping OpenAI as a nonprofit-focused organisation.

OpenAI and Altman’s response

On the other side, OpenAI and Altman have pushed back against these claims. Their legal team has argued that the lawsuit is less about broken promises and more about disagreements between founders.

OpenAI’s side has argued that these discussions were not new. They have said that Musk was part of early conversations where different funding options, including a for-profit setup, were being explored.

OpenAI, on its part, has pointed out that building advanced AI systems is not cheap. It requires large-scale funding. That is where partnerships, including the one with Microsoft, came in. According to them, this shift was necessary to continue research and development at scale.

There is also the competition angle being discussed. Musk is now running his own AI company, xAI, which operates in the same space, and that has also been brought up during arguments.

What has been seen so far in court

So far, the court has gone through a mix of emails, early discussions between founders, and testimonies that try to piece together how OpenAI was structured in its early days.

A lot of the arguments have revolved around ownership, funding, and who had control over key decisions. Musk’s side has focused on how the original mission has changed over time, while OpenAI’s lawyers have said the company simply evolved as it grew.

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