Musk says OpenAI ‘stole a charity’ as blockbuster trial opens, Altman fires back in high stakes AI courtroom clash

A legal battle that could reshape the future of artificial intelligence began in a federal courtroom in Oakland, California, as Elon Musk accused Sam Altman and OpenAI of abandoning the organisation’s founding mission.

In opening arguments, Musk’s lawyers framed the dispute as more than a corporate lawsuit. They described it as a fight over whether a nonprofit created to serve humanity was transformed into a commercial powerhouse for private gain. OpenAI rejected those claims and argued that Musk’s case is rooted in personal frustration after losing influence at the company he helped start.

The case is one of the most closely watched technology trials in recent years because it places the world’s AI race, corporate governance and billions of dollars in future value under direct scrutiny.

Musk and Altman were among the original founders of OpenAI in 2015. The organisation was launched as a nonprofit research lab with a stated goal of developing advanced artificial intelligence for the benefit of humanity.

According to Musk’s legal team, that founding promise sits at the center of the dispute. Lead lawyer Steven Molo told jurors that OpenAI was created “for the benefit of all mankind” and argued that no one should be allowed to misuse a charity structure for private commercial purposes.

Musk’s lawsuit claims OpenAI shifted away from its nonprofit purpose by building a powerful commercial operation tied closely to Microsoft. He is seeking damages exceeding $150 billion and wants structural changes to the company’s leadership and governance.

OpenAI strongly disputed Musk’s version of events. Its lead counsel argued in court that the lawsuit is fundamentally about Musk failing to gain the control he wanted.

The company says its nonprofit entity still oversees the broader OpenAI structure, while the commercial arm helps finance expensive research, infrastructure and product development. Lawyers also said the organisation uses resources for public interest work, including scientific and economic initiatives.

OpenAI has previously argued that Musk himself supported commercial options while he was still involved with the company, weakening his claims that the current structure betrays the original mission.

The courtroom battle revives tensions that have been building for years.

Musk exited OpenAI in 2018 after disagreements over leadership direction and control. Court filings referenced during the case indicate Musk proposed closer ties between OpenAI and Tesla, suggesting that Tesla could provide computing power to compete with Google.

When those ideas were rejected, Musk stepped away and later withdrew financial support. OpenAI then pursued alternative funding and eventually secured massive backing from Microsoft.

That investment helped fuel the rise of ChatGPT in 2022 and accelerated OpenAI’s transformation into one of the most influential companies in the global technology industry.

The stakes go far beyond personal rivalry.

OpenAI is now reportedly valued at about $730 billion, making it one of the most valuable private technology companies in the world. It is also widely viewed as a potential candidate for one of the biggest public listings in market history.

A ruling in Musk’s favor could slow or complicate OpenAI’s growth plans, governance model and fundraising strategy. It could also strengthen rivals including Google, Anthropic and international competitors such as DeepSeek.

If OpenAI prevails, Altman would likely emerge with stronger authority over a company already central to the next phase of AI development.

The witness list underlines the significance of the case.

Expected witnesses include Musk, Altman, Satya Nadella and former OpenAI executives and board members. Their testimony could reveal how internal decisions were made during key turning points in the company’s evolution.

Before arguments began, Judge Yvonne Gonzalez Rogers addressed concerns about public commentary outside court.

She reportedly asked whether limits were needed on social media posts after Musk had posted repeated criticism of Altman and OpenAI on his platform X.

The judge urged both sides to keep public remarks to a minimum and begin with what she called a clean slate.

The trial reflects a larger global debate about who should control advanced artificial intelligence, how it should be funded and whether public interest promises can survive commercial pressure.

Musk presents himself as defending OpenAI’s founding ideals. OpenAI argues it evolved in a practical way to finance one of the most expensive scientific races in history.

The jury’s decision may determine more than liability or damages. It could help define how future AI companies balance mission, money and power in one of the century’s most consequential industries.