News-Musk-v-Altman-Trial-Day-1-2026
On April 28, 2026, the highly anticipated Musk v. Altman bench trial began in the Northern District of California before Judge Yvonne Gonzalez Rogers, with Elon Musk taking the stand and accusing OpenAI CEO Sam Altman and co-founder Greg Brockman of betraying the nonprofit mission of the AI company they co-founded in 2015.[1]
Musk's Direct Testimony
Musk took credit for OpenAI's creation, testifying: "I came up with the idea, name, recruited the key people, provided the funding. I could have started it as a for-profit, and I chose not to."[1] He described his initial discussions with Altman to make OpenAI a charity, saying they agreed that surplus earnings would go into the organization's cash reserves and that it would remain an independent 501(c)(3) tax-exempt organization.[1]
Musk warned: "If the verdict comes out that it's OK to loot a charity, charitable giving in America will be destroyed."[1] According to Musk, corporate founding documents said that "no person shall benefit from this charity."[1]
OpenAI's Opening Statement
OpenAI attorney Bill Savitt opened by lambasting Musk, arguing that the case existed because "Mr. Musk didn't get his way at OpenAI."[1] Savitt claimed: "Musk never cared whether OpenAI was a not-for-profit. He never cared about AI safety. What he cared about was Elon Musk on top."[1]
OpenAI's defense contends that Musk never gave the $1 billion he had promised, alleging he quit when Altman and co-founders refused to "bow to Musk's demands for control of the enterprise or, alternatively, its absorption into Musk's electric car company, Tesla."[1]
Trial Context
Jury selection wrapped up April 27 for the trial scheduled to run approximately four weeks.[1] Witnesses are expected to include Musk, Altman, Microsoft CEO Satya Nadella, top AI researchers, and current and former OpenAI board members. Musk seeks an estimated $134 billion in damages from OpenAI and Microsoft, a co-defendant in the case.[1]
Significance
The outcome will determine whether OpenAI's October 2025 restructuring — which removed its profit cap and later raised $122 billion — was lawful. Musk seeks to stop OpenAI from operating as a for-profit entity.[1] The trial tests the legal boundaries of nonprofit-to-for-profit conversions in the AI industry and could set precedent for charitable organizations nationwide.