Stock Markets May 4, 2026 07:18 AM

Musk Raised Settlement Option With OpenAI Two Days Before Oakland Trial, Court Filing Says

Court filing recounts alleged exchange with OpenAI president as high-stakes lawsuit advances, seeking leadership changes and $150 billion in damages

By Leila Farooq MSFT
Musk Raised Settlement Option With OpenAI Two Days Before Oakland Trial, Court Filing Says
MSFT

A court filing dated May 4 says Elon Musk reached out to OpenAI President Greg Brockman two days before the Oakland federal trial began to explore a settlement. The filing recounts an exchange in which Brockman proposed both parties drop their claims and Musk allegedly warned of reputational fallout. The dispute centers on Musk's claim that OpenAI abandoned its nonprofit mission when it converted to a for-profit structure and that its leaders profited improperly; he is seeking leadership changes and $150 billion in damages from OpenAI and Microsoft. The trial opened April 28 before U.S. District Judge Yvonne Gonzalez Rogers and is expected to continue for several weeks, with a possible verdict by mid-May.

Key Points

  • A court filing says Elon Musk contacted OpenAI President Greg Brockman two days before the Oakland trial to discuss a possible settlement, and the exchange included an alleged warning about reputational fallout.
  • Musk's lawsuit claims OpenAI's 2017 shift from nonprofit to for-profit violated its original mission and that leaders improperly benefited from his charitable contributions; he is seeking leadership changes and $150 billion in damages from OpenAI and Microsoft.
  • The trial began April 28 before U.S. District Judge Yvonne Gonzalez Rogers and is expected to last several weeks, with Sam Altman, Greg Brockman and Microsoft CEO Satya Nadella slated to testify later in the month - developments that could affect technology and investor sentiment in the AI and cloud sectors.

May 4 - A newly filed court document says Elon Musk contacted OpenAI President Greg Brockman two days before their trial in Oakland federal court was scheduled to begin, asking whether Brockman would consider settling the dispute out of court.

The filing, made on Sunday, recounts an exchange in which Brockman reportedly suggested that both sides drop their claims. According to the document, Musk then said, "By the end of this week, you and Sam will be the most hated men in America. If you insist, so it will be." The passage is presented as part of the broader record of pretrial communications in the case.

The alleged interaction is the most recent development in litigation that has grown contentious inside the courtroom. The SpaceX founder previously testified that he did not read the fine print of a 2017 term sheet related to OpenAI's transition from a nonprofit to a for-profit entity, and that he reviewed only the headline of the document.

Musk's lawsuit asserts that OpenAI's conversion to a for-profit structure betrayed the organization's original nonprofit mission to develop safe artificial intelligence for the public good. The complaint also alleges that OpenAI's leaders wrongfully profited from contributions Musk made as charitable donations.

In his filings, Musk is seeking changes to OpenAI's leadership and has demanded $150 billion in damages, naming both OpenAI and Microsoft, one of OpenAI's largest investors, as defendants. The case is being heard before U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California.

The trial opened on April 28 and is expected to run for several weeks, the filing notes, with a verdict potentially arriving by mid-May. Company leaders Sam Altman and Greg Brockman, as well as Microsoft chief Satya Nadella, are scheduled to testify later in the month, according to the court schedule.

The filing's account of the pretrial exchange underscores the personal and reputational stakes described in the complaint, while also highlighting the procedural steps the parties took immediately prior to the trial start date. Musk, his attorney, and OpenAI did not immediately respond to requests for comment referenced in the record.


The court filing and testimony excerpts already on the record have driven attention to both the legal claims and the potential consequences for leadership and investor relationships at OpenAI. With testimony from company officials and a major investor still to come, the proceedings are likely to remain closely watched as the trial progresses.

Risks

  • Uncertainty over the trial outcome and timing - the proceeding is expected to continue for several weeks with a verdict possible by mid-May, creating legal and market uncertainty for involved parties and their investors.
  • Potential leadership changes at OpenAI if the court grants the remedies Musk seeks, which could affect governance and strategy at the company and influence partner relationships in the AI ecosystem.
  • The sizable damages demand of $150 billion against OpenAI and Microsoft introduces a significant financial risk for the named defendants and could influence perceptions in the technology, cloud services, and investment communities.

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