Stock Markets April 30, 2026 06:12 AM

Musk Returns to Stand as Cross-Examination Resumes in OpenAI Lawsuit

Second day of questioning focuses on communications about nonprofit-to-for-profit shift and Microsoft investments

By Nina Shah MSFT TSLA
Musk Returns to Stand as Cross-Examination Resumes in OpenAI Lawsuit
MSFT TSLA

Elon Musk is scheduled to resume testimony for a second day of cross-examination as the high-profile civil trial over his suit against OpenAI continues in federal court in Oakland, California. Musk alleges that OpenAI, its co-founder Sam Altman and President Greg Brockman solicited his $38 million donation under the premise of building a nonprofit dedicated to safe AI, then shifted to a for-profit structure that he says enriched insiders. OpenAI has pushed back, portraying Musk as motivated by control and competitive concerns, and noting he left the board in 2018. The trial opened on Monday and is expected to run several weeks.

Key Points

  • Elon Musk is returning to the witness stand for a second day of cross-examination in his lawsuit against OpenAI alleging the group shifted from a nonprofit mission to a for-profit model after securing his $38 million in donations. - Sectors impacted: Technology, Software
  • OpenAI counters that Musk seeks control and is reacting to the company’s success after he left the board in 2018, and that he did not prioritize safety while on the board. - Sectors impacted: Technology, Corporate governance
  • Evidence presented so far includes text messages and emails, including a 2017 email from Musk calling himself a "fool" for funding what he believed was a nonprofit; Microsoft’s investments and involvement have been discussed and a Microsoft lawyer will question Musk. - Sectors impacted: Technology, Corporate investments

OAKLAND, California - Elon Musk is slated to return to the witness stand on Thursday for a second day of cross-examination in the civil trial he initiated against OpenAI, a case that centers on whether the organization abandoned its stated mission to develop artificial intelligence for the benefit of humanity.

Musk, described in court filings as the world’s richest man, claims that OpenAI, co-founder and CEO Sam Altman and President Greg Brockman persuaded him to provide $38 million in donations by representing the organization as a nonprofit committed to safety. He contends that the group later pivoted to create a for-profit entity that he says benefited its leaders financially.

OpenAI has rebutted those assertions in court filings and testimony, arguing that Musk is motivated by a desire to control the organization and by resentment over its success after his departure from the board in 2018. The company has also told jurors that Musk did not emphasize safety concerns while he was on the board and suggested his lawsuit may be related to competitive aims tied to his own AI efforts through a SpaceX unit, xAI, which OpenAI says trails in user adoption.

During contentious exchanges on Tuesday, William Savitt, representing OpenAI, Altman and Brockman, questioned Musk about text messages and emails that Savitt said showed Musk at times signaled openness to establishing a for-profit vehicle. Savitt also pointed to communications in which Altman kept Musk informed about Microsoft’s investments in OpenAI.

Jurors were shown an email that Musk sent in 2017 to Altman and Brockman in which he described himself as a "fool" for having provided funding to what he believed at the time was a nonprofit endeavor. That email was introduced as part of evidence the defense used to challenge Musk’s claims about what he was promised.

Under questioning by his own lawyer, Steven Molo, Musk testified: "I felt like they had not been honest with me." He added, "What they really wanted to do was create a for-profit where they had as much shareholder ownership as possible." OpenAI has countered that the for-profit structure was created to permit private investment that would help the organization secure computing power and hire leading scientists.

Savitt is expected to resume his cross-examination of Musk for approximately an hour on Thursday. A lawyer representing Microsoft also plans to question Musk during that session. The trial began on Monday and court sources say it is anticipated to last several weeks.

Following Musk’s testimony, the court is expected to hear from a sequence of witnesses that includes Musk’s top aide, Jared Birchall, OpenAI President Greg Brockman, and AI safety expert Stuart Russell.


Context and process

The proceedings have focused on the nature of communications between Musk and OpenAI leadership, the intent behind OpenAI’s structural choices and the motivations each side attributes to the other. Evidence introduced so far includes emails and text messages intended to illuminate what promises were made to Musk and how OpenAI’s strategic direction evolved.

With jurors still hearing testimony and more witnesses to come, the factual record will continue to develop over the coming weeks as both sides present documents and witness accounts.

Risks

  • Legal uncertainty - The outcome of the ongoing trial is unresolved, and continued litigation could create reputational and financial risks for the parties involved. - Sectors impacted: Technology, Corporate governance
  • Competitive and reputational exposure - Allegations about motives, governance and past behavior could affect public and investor perceptions of OpenAI, Musk’s companies and related ventures. - Sectors impacted: Technology, Automotive, Aerospace
  • Evidence-driven ambiguity - Communications introduced in court, such as emails and text messages, leave open questions about the parties' intentions at the time of fundraising and structural changes. Further testimony may clarify or complicate the factual record. - Sectors impacted: Technology, Financial markets

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