In the first week of a high-profile court battle, Elon Musk took the stand to accuse OpenAI of deception and mismanagement. Musk claims he was duped into funding a company that has since grown into a multi-hundred-billion-dollar enterprise. He also voiced concerns about the dangers of artificial intelligence and revealed some surprising connections between his own AI ventures and OpenAI.

Musk Details His Allegations and Courtroom Drama

Musk appeared in the courtroom dressed sharply and maintained a calm demeanor as he testified about his role in founding OpenAI in 2015. He argued that he provided nearly $38 million in funding with the intention of supporting AI research for the good of humanity, not for profit. Musk contends that he was misled about the company’s direction and the use of his donations, which contributed to OpenAI’s rapid rise to a valuation of around $800 billion.

Throughout his testimony, Musk expressed remorse and frustration, stating he believed he was supporting a nonprofit that aimed to develop safe AI. He asked the court to remove OpenAI’s current leadership and undo structural changes that allowed the company to operate as a for-profit subsidiary. The case has significant implications, as it could influence OpenAI’s plans for a future IPO valued near $1 trillion, while Musk’s own xAI could soon go public as part of SpaceX with a valuation of approximately $1.75 trillion.

Debates Over AI Safety and Motivations

A key topic in the trial was Musk’s position on AI safety. Musk portrayed himself as a longtime advocate for cautious development of artificial intelligence. He claimed that his initial goal in cofounding OpenAI was to create a counterbalance to dominant tech giants like Google, which at the time was leading the AI race. Musk shared an anecdote about asking Google cofounder Larry Page about AI safety, and Page’s dismissive response about AI survival risks, which alarmed Musk.

OpenAI’s lawyer, William Savitt, challenged Musk’s narrative by suggesting he was not genuinely committed to AI safety and was instead motivated by competitive concerns. The courtroom debate intensified around who truly bears responsibility for AI safety. Musk’s lawyer, Steven Molo, argued that OpenAI’s safety record is questionable and that Musk’s own company, xAI, is creating AI in a risky space. The judge intervened, emphasizing that the trial was not about whether AI has harmed humanity but about the specific allegations of deception and mismanagement.

During cross-examination, Musk explained that he initially supported OpenAI enthusiastically, but his confidence waned over time. He described three phases: first, full support; second, growing doubts about transparency; and third, suspicion that the nonprofit was being looted. Musk revealed that discussions in 2017 about creating a for-profit subsidiary to fund general intelligence research never materialized as he hoped. It was only in late 2022 that Musk said he lost trust in OpenAI’s leadership, prompting his decision to sue.

The courtroom proceedings also touched on broader issues like AI regulation and safety. Musk has long warned about the existential risks posed by AI, warning that it could lead to scenarios like a Terminator-style apocalypse. However, critics and legal opponents questioned whether Musk’s motivations are driven more by competition than concern for safety. The trial continues, with the outcome potentially reshaping the future of AI development and corporate governance in this rapidly evolving field.

Inspired by

• https://www.technologyreview.com/2026/05/01/1136800/musk-v-altman-week-1-musk-says-he-was-duped-warns-ai-could-kill-us-all-and-admits-that-xai-distills-openais-models/

Sources

• bloomberg.com
• bloomberg.com
• wired.com