The legal battle between Elon Musk and OpenAI, co-founded by Musk, commenced its second week of proceedings in Oakland, California. The trial, initiated by Musk's lawsuit alleging a betrayal of OpenAI's founding non-profit mission, focuses on the company's shift towards a for-profit structure and its relationship with Microsoft.
Elon Musk testified for three days during the trial's first week, presenting his core argument that OpenAI reneged on its foundational agreement to benefit humanity and remain open-source. Musk stated that he provided approximately $38 million in funding to OpenAI between 2015 and 2017, with the understanding that the company would operate as a non-profit entity. He described the company's subsequent evolution into a for-profit venture, particularly after a substantial investment from Microsoft, as a "bait and switch" and a "betrayal" of its original purpose. Musk's legal team has repeatedly emphasized the tagline, "It's not okay to steal a charity," to encapsulate his claims.
OpenAI's defense counters that Musk's lawsuit is motivated by jealousy and a desire to undermine a competitor, namely his own AI venture, xAI. The company contends that there was never a commitment to remain a non-profit indefinitely and that establishing a for-profit entity was a necessary step for funding advanced AI development. OpenAI's lawyers have also suggested that Musk himself had commercial ambitions and even sought a leadership role, including CEO, at the company.
A significant portion of the first week's testimony involved OpenAI President Greg Brockman. Musk's lawyers pressed Brockman on his personal financial gains from OpenAI's for-profit structure, highlighting that his equity stake is now valued at nearly $30 billion. Brockman acknowledged this valuation, though he maintained that compensation was secondary to the mission. Lawyers for Musk questioned whether Brockman's significant personal wealth derived from the for-profit conversion was consistent with OpenAI's original non-profit charter and his fiduciary duties. Brockman's personal journal entries were also presented, with Musk's legal team suggesting they indicated an awareness that shifting to a for-profit model would contradict assurances given to Musk.
The trial has also brought to light details about OpenAI's funding and structure. Founded in 2015 as a non-profit with the mission to ensure artificial general intelligence benefits all of humanity, OpenAI created a for-profit subsidiary in 2019 to scale its research and deployment efforts. This structure was updated in October 2025, with the non-profit becoming the OpenAI Foundation, which governs a for-profit public benefit corporation, OpenAI Group PBC. OpenAI has stated that this structure allows it to raise capital and attract talent while maintaining mission-focused governance. The company's valuation has reportedly reached $850 billion, with an initial public offering being explored.
The judge, Yvonne Gonzalez Rogers, has sought to keep the proceedings focused on the alleged breach of promises rather than highly technical AI concepts. She has also expressed skepticism about placing the future of humanity in the hands of individuals and emphasized avoiding lengthy debates on AI's potential dangers during the trial.
Key figures such as OpenAI CEO Sam Altman and Microsoft CEO Satya Nadella are expected to testify later in the trial, which is scheduled to last approximately three weeks.