Musk Takes OpenAI to Court Over $150B Profit Pivot

The world's richest person walked into federal court in Oakland, California this week armed with an explosive accusation: Sam Altman and OpenAI's leadership "stole a charity." In opening statements, Musk's attorney Steven Molo told jurors that OpenAI transformed from a nonprofit dedicated to developing artificial intelligence for humanity's benefit into a "profit-seeking juggernaut" controlled by executives interested in "collecting riches for themselves."[2] Musk, who co-founded OpenAI in 2015 alongside Altman and Greg Brockman, provided roughly $38 million in initial funding and recruited top talent to launch the venture.[2] His legal complaint centers on OpenAI's 2019 decision to shift toward a for-profit structure, which he argues violated the company's founding principles. "If we make it okay to loot a charity, the entire foundation of charitable giving in America will be destroyed," Musk told the court.[1] The damages Musk is seeking are staggering: $150 billion, with proceeds directed to OpenAI's charitable arm.[2] Beyond money, Musk demands that OpenAI revert to nonprofit status, that Sam Altman and Greg Brockman be removed from leadership, and that the company refocus on benefiting humanity rather than maximizing shareholder returns.[3] OpenAI's defense strikes at Musk's credibility and motivations. The company argues Musk was aware of and supported the 2019 transition to a for-profit model, and only filed suit after failing to become CEO himself.[3] OpenAI's lawyers further allege the lawsuit is fueled by jealousy over the company's soaring $850 billion valuation and Musk's competitive interests tied to his own AI venture, xAI.[2] The company, now structured as a public benefit corporation, maintains that the shift was "necessary to secure funding, access computing power, and attract top-tier researchers."[1] The trial carries implications far beyond the courtroom. Legal experts say the case could complicate OpenAI's path toward an initial public offering and sharpen scrutiny of how AI leaders monetize technology and distribute wealth.[3] Microsoft, a major OpenAI investor, is also named as a defendant but denies wrongdoing, arguing it partnered with OpenAI only after Musk's departure.[3] A federal judge has already cautioned both sides about courtroom conduct, specifically urging Musk to restrain from social media attacks—he had previously referred to Altman as "Scam Altman" on his platform X.[1] As Musk returns to the witness stand for continued testimony, the case represents one of tech's most consequential power struggles: a fight over whether artificial intelligence's future belongs to humanity or to a select group of billionaires.