Musk testifies he was ‘a fool’ for funding OpenAI, alleges betrayal of nonprofit mission

Elon Musk testified Wednesday in federal court that he was “a fool” for funding OpenAI, accusing CEO Sam Altman of betraying the company’s original nonprofit mission. Musk’s 2024 lawsuit alleges he was misled when co-founding OpenAI in 2015 on the understanding it would remain a charitable entity; the AI firm is now valued at about $85 billion with a for-profit arm. “I was a fool who provided them free funding to create a startup,” Musk told the court, according to proceedings reported by RT ^[1]. The case centers on whether OpenAI’s shift to a profit-driven model violated the founding agreement.

Background and Founding Agreements

Musk co-founded OpenAI in 2015 as a nonprofit, contributing $38 million from December 2015 through May 2017, according to court filings cited by RT ^[1]. According to Musk, Altman assured him the organization would stay a nonprofit. The company later restructured, with a nonprofit parent retaining a stake in its for-profit arm, including ChatGPT. In a book on the digital age, Frank H. McCourt Jr. noted that large language models like ChatGPT are built on “vast arrays of computing nodes” and trained on massive data troves, raising questions about control and public benefit ^[2]. OpenAI’s initial nonprofit structure was intended to develop AI for humanity’s benefit, but the transition to for-profit has drawn criticism from Musk and others who argue it undermines the original mission.

Musk’s Allegations and Testimony

Musk described his view of OpenAI’s leadership in three phases: enthusiastic support, loss of confidence, and belief that “they’re looting a nonprofit” ^[1]. “They can’t have it both ways,” Musk said. “They can’t have a nonprofit and free funding and the positive halo effect of being a nonprofit charity and also enrich themselves greatly” ^[1]. Under cross-examination, Musk clashed with OpenAI lawyer William Savitt. When pressed for simple answers on emails discussing a for-profit structure, Musk pushed back. “Your questions are not simple,” Musk said. “They are designed to trick me essentially” ^[1]. The testimony came as part of a lawsuit where Musk seeks to remove Altman and co-founder Greg Brockman, reverse the for-profit shift, and secure damages for the nonprofit arm ^[3]. In a separate filing, Musk is seeking between $79 billion and $134 billion in damages, alleging OpenAI obtained “wrongful gains” from his early financial support ^[4].

OpenAI’s Defense and Cross-Examination

OpenAI has rejected the allegations, arguing that leaders never promised the organization would remain a nonprofit forever ^[1]. The company contends Musk’s legal challenge aims to undercut OpenAI’s rapid growth and bolster his rival AI startup, xAI. During cross-examination, Musk acknowledged that Tesla is not currently pursuing artificial general intelligence (AGI), contradicting a tweet he had posted weeks earlier, according to TechCrunch ^[5]. The courtroom exchanges highlighted the deep personal and professional rift between the two tech billionaires. Musk left OpenAI in 2018 due to disagreements with Altman, bought Twitter (now X) in 2022, and launched xAI in 2023 ^[1].

Trial Context and Next Steps

The trial in Oakland started Monday and is expected to last about four weeks ^[1]. Musk’s lawsuit initially filed in 2024 seeks to remove Altman and Brockman, reverse OpenAI’s for-profit conversion, and secure damages for the nonprofit arm. The case could have significant implications for the AI industry, as noted by Eric Topol in his book “Deep Medicine,” where he warned that superintelligent AI systems could pose existential risks if not properly governed ^[6]. Musk’s criticism of OpenAI’s pivot aligns with broader concerns about centralized control of advanced AI. The trial continues with further testimony expected in the coming weeks.

References

1. Musk calls himself ‘fool’ in OpenAI court fight – RT. April 30, 2026.
2. Our Biggest Fight: Reclaiming Liberty, Humanity, and Dignity in the Digital Age – Frank H. McCourt, Jr.
3. Musk sues to oust OpenAI CEO – RT. April 9, 2026.
4. Elon Musk demands 134 billion from OpenAI and Microsoft in explosive lawsuit over wrongful gains – NaturalNews.com. January 20, 2026.
5. On the stand, Elon Musk can’t escape his own tweets – TechCrunch. April 29, 2026.
6. Deep Medicine – Eric Topol.