Sam Altman strongly rejected Elon Musk’s accusations that he betrayed OpenAI’s founding mission on Tuesday (12 May) as a California courtroom erupted over the future of maker ChatGPT.
The closely watched federal trial in Oakland could reshape the governance and leadership of OpenAI, one of the world’s most influential artificial intelligence companies.
Musk accuses OpenAI of abandoning non-profit mission
Musk sued OpenAI and its management in August 2024, alleging that Altman and OpenAI president Greg Brockman convinced him to donate $38 million to a nonprofit AI initiative to benefit humanity, only for the organization to later pursue a for-profit model.
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Elon Musk accuses Sam Altman and OpenAI of betraying the company’s founding mission. He claims he was persuaded to contribute to a non-profit AI initiative, only for OpenAI to later pursue a for-profit model and become a commercial company.
Sam Altman vehemently denies the allegation, stating that the “charity theft” framing does not fit what is happening. He argues that OpenAI’s non-profit structure still benefits significantly from the company’s future success.
OpenAI’s legal team claims Elon Musk was aware of discussions about creating a profit structure. Sam Altman testified that he was uncomfortable with Musk’s demands for more authority within OpenAI.
Ilya Sutskever testified that he never promised Elon Musk that OpenAI would permanently remain a non-profit organization. He said OpenAI’s mission is bigger than its non-profit or for-profit structure.
Elon Musk is seeking approximately $150 billion in damages from OpenAI and Microsoft. The lawsuit also aims to remove Sam Altman and Greg Brockman from their leadership positions at OpenAI.
Musk claims that OpenAI has abandoned its original mission and instead evolved into a powerful commercial enterprise backed by major technology investors.
Altman denies accusations of ‘stealing charity’
During testimony in federal court, Altman flatly denied Musk’s accusation that OpenAI leaders effectively “stole charity.”
“I find it hard to even wrap my head around the framing,” Altman told the court.
He added: “It doesn’t fit my definition of ‘charitable theft’ to look at what’s going on here.”
Altman argued that OpenAI’s non-profit structure still benefits significantly from the company’s future success.
“As OpenAI continues to thrive, the nonprofit will continue to thrive,” he said.
OpenAI says the company’s structure has evolved over time
Altman also disputed suggestions that OpenAI was essentially Musk’s creation.
According to Altman, the organization explored several corporate structures during its early years, including not-for-profit and for-profit options.
“At the time, we had no idea that we would one day have profits or revenue,” Altman testified.
The remarks are part of OpenAI’s broader defense that the company’s evolution has reflected changing technological and financial realities rather than a betrayal of its founding principles.
OpenAI claims that Musk wanted to be in control
OpenAI’s legal team argued that Musk was aware of discussions about creating a profit structure, but later became disaffected after losing influence over the company.
Altman testified that he was uncomfortable with Musk’s demands for more authority within OpenAI.
“I was extremely uncomfortable” with Musk’s demand for control, Altman said.
OpenAI says Musk’s lawsuit stems in part from frustration at missing out on a massive financial boost from the AI boom.
OpenAI’s chairman questions Musk’s takeover bid
OpenAI chairman Bret Taylor also testified on Tuesday, revealing that OpenAI had received a formal takeover proposal in February 2025 from a consortium led by Musk’s AI company xAI.
Taylor said the proposal seems contradictory given Musk’s legal claims to protect the nonprofit OpenAI’s mission.
“I was surprised,” Taylor testified.
He continued: “This proposal was to acquire this non-profit organization by a group of for-profit investors, which seemed contrary to the spirit of the lawsuit.”
Musk is demanding damages and removal of management
Musk is seeking roughly $150 billion in damages from OpenAI and Microsoft, which have invested heavily in OpenAI’s AI infrastructure and development.
The suit also seeks the removal of Altman and Brockman from their leadership positions.
The case has become one of the most closely watched legal battles in Silicon Valley, pitting two of the AI industry’s most prominent figures against each other.
Witnesses describe tensions within OpenAI
The trial also included testimony from several prominent figures associated with OpenAI.
OpenAI’s former chief scientist Ilya Sutskever testified that he spent nearly a year gathering evidence suggesting Altman exhibited a “consistent pattern of lying.”
Meanwhile, Satya Nadella described Microsoft’s investment in OpenAI as a “calculated risk”.
Other witnesses included former OpenAI chief technology officer Mira Murati and former OpenAI board member Shivon Zilis.
Musk warns of risks of AI leadership
Musk, who testified earlier in the proceedings, framed the dispute as a matter of public safety and AI governance.
“If you have somebody who’s not trustworthy in charge of AI, I think that’s a very big danger to the whole world,” Musk told the court.
He also claimed that OpenAI was born out of his vision before it strayed from its non-profit roots.
According to Musk, Altman assured him that OpenAI would remain a non-profit organization even as discussions of commercialization arose.
The trial could affect the future of OpenAI
U.S. District Judge Yvonne Gonzalez Rogers is overseeing the case.
Testimony is expected to wrap up this week, with jurors having until May 18 to begin deliberations on whether OpenAI executives are legally liable.
Any remedies or sanctions would ultimately be determined by a judge.
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