Updated on: April 29, 2026 / 6:37 PM EDT / CBS/AP
Elon Musk told a court Wednesday he was a “fool” for providing funding to launch ChatGPT maker OpenAI.
Testifying in a case he brought against OpenAI, the billionaire said he continued to finance the company after receiving assurances from CEO Sam Altman that OpenAI would remain a nonprofit. Musk said he later grew doubtful about the company’s direction and felt betrayed.
In his civil lawsuit, Musk alleges OpenAI, Altman and President Greg Brockman broke the company’s founding agreement by prioritizing profit over a pledge to remain a nonprofit dedicated to human progress. The trial in the U.S. District Court for the Northern District of California began Monday and is expected to last about four weeks.
Musk testified he contributed $38 million to OpenAI from December 2015 through May 2017. OpenAI is now valued at more than $85 billion. OpenAI’s lawyers reject Musk’s claims, saying leaders never guaranteed the company would remain a nonprofit forever and that Musk’s suit is intended to undercut OpenAI’s growth and bolster his rival, xAI, launched in 2023.
Heated cross-examination
During cross-examination, Musk frequently pushed back. OpenAI lawyer William Savitt questioned Musk about pre-founding emails from 2015, including whether it would have been better to form a for-profit company and whether his donations would qualify for tax deductions.
“Your questions are not simple,” Musk said. “They are designed to trick me essentially.” He added that any simple answer would mislead the jury.
Judge Yvonne Gonzalez Rogers asked Musk to answer whether it was true or false that OpenAI was formed as a nonprofit in December 2015. Musk replied yes, but warned the issue wasn’t always simple, likening it to a loaded question such as “have you stopped beating your wife?” The judge cut him off, saying, “We are not going to go there,” prompting laughter in the courtroom.
High stakes
Despite moments of levity, the trial carries high stakes that could influence the balance of power in artificial intelligence. Musk’s lawsuit seeks to remove Altman from OpenAI’s board and, if successful, could derail OpenAI’s plans for an initial public offering.
Musk described his views of Altman and other OpenAI cofounders in three phases: initial excitement, loss of confidence, and by late 2022, the belief that “these guys are betraying their promise.” OpenAI counters that Musk sought control of the company for himself. Musk testified he initially aimed for a majority stake and control of four of seven board seats, but said those holdings would dilute as the company grew—comparing the process to his early majority stake in Tesla, now roughly 15%. OpenAI maintains there were no assurances he would eventually relinquish board control.
Court sketch shows Musk on the witness stand in Oakland, California, where he accuses OpenAI of abandoning its founding mission to remain a nonprofit focused on benefiting humanity.