Elon Musk's lawsuit against OpenAI escalates; Accuses Sam Altman of betraying public trust and seeks $134 billion in damages.

During an ongoing lawsuit, Elon Musk accused OpenAI and its leadership of deception regarding his funding. He additionally demanded $134 billion in damages while testifying on various aspects of OpenAI's transition to a for-profit model.

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Sources: NBC NewsCNN
Elon Musk's lawsuit against OpenAI intensifies as he accuses CEO Sam Altman of betraying public trust and seeks a staggering $134 billion in damages. Musk testified that he was misled into funding OpenAI, which he founded in 2015 as a nonprofit.

"I did not read the fine print," Musk admitted during his testimony, expressing concern that OpenAI's for-profit structure had overtaken its original charitable mission. He also accused Microsoft of complicity in a breach of trust.

Musk expressed regret over his decision to support OpenAI, stating the conversion to a for-profit entity disrupted what was meant to be a nonprofit initiative focused on public good. This lawsuit follows Musk's own venture into the AI space with his company xAI, founded in 2023.

"I deliberately chose to create OpenAI as a nonprofit for the public good," Musk noted, revealing his disillusionment with OpenAI's current direction and leadership, leading to his failure to fulfill a $1 billion funding pledge. Musk’s criticisms come amidst a backdrop where he races to build a competitive AI, stating "DeepMind is moving very fast. I am concerned OpenAI is not moving fast enough to catch up."
Sources: NBC News
Elon Musk's lawsuit against OpenAI accuses CEO Sam Altman of betraying public trust and seeks $134 billion in damages, alleging deception that led him to support the AI company’s founding. Musk also names Microsoft as a co-defendant for its role in the alleged breach.
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Key Facts
  • On April 29, 2026, Elon Musk was cross-examined by OpenAI attorney William Savitt during his lawsuit trial over OpenAI's for-profit conversion in Oakland, California.CNN1
  • Elon Musk accused OpenAI and its executives of deceiving him into donating money to help found a major AI company, and named Microsoft as a co-defendant for aiding OpenAI’s breach of charitable trust.CNN1
  • Musk testified that he was fine with OpenAI having a for-profit subsidiary as long as it didn’t “overtake” the nonprofit, which he argued it ultimately did.CNNNBC News2
  • Elon Musk expressed concern that he “did not read the fine print” regarding OpenAI's plans to raise $10 billion in funding.CNNNBC News2
  • Elon Musk stated that his race to build a better AI than Google was a motivating factor in his funding of OpenAI.CNN1
  • Musk noted concerns about DeepMind, stating it was moving very fast and that he was worried OpenAI wasn't keeping pace.CNN1
  • Elon Musk claims OpenAI CEO Sam Altman betrayed public trust by enriching himself through the artificial intelligence company they founded together in 2015 as a nonprofit venture.NBC News
  • Judge Yvonne Gonzalez Rogers reminded Musk’s attorney that AI itself is not on trial, stating, "It’s ironic your client, despite these risks, is creating a company that is in the exact space."NBC News
  • Musk demands an estimated $134 billion in damages from OpenAI and Microsoft, a co-defendant and one of OpenAI’s top financial backers.NBC News
  • Musk never fulfilled his $1 billion commitment to the company — which Musk also confirmed in court this week.NBC News
  • Musk, who said Wednesday that he deliberately chose to create OpenAI "as a nonprofit for the public good," launched his own for-profit AI company, xAI, in 2023.NBC News
  • Musk testified that he has never directed X’s algorithm to deboost OpenAI’s account.CNNNBC News2
  • Musk noted Wednesday that he didn’t follow through on his original $1 billion promise because he “lost confidence in the team.”NBC News
  • Musk said Thursday that he gifted the Teslas as “appreciation for the hard work and sacrifice of people at OpenAI, the charity, who had taken salaries much less than if they had worked at a for-profit.”NBC News

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