Elon Musk admitted on the stand he was a “fool” for trusting OpenAI leaders who turned a nonprofit charity into a Microsoft-backed profit machine, exposing betrayal at the heart of America’s AI future.
Story Highlights
- Musk’s testy second day testimony revealed emails demanding control and his regret over $38-45 million in funding to OpenAI.
- OpenAI shifted from 2015 nonprofit mission to for-profit in 2019, securing $10B from Microsoft, which Musk called a “bait and switch.”
- Trial stakes include $130B damages, removing CEO Sam Altman, and forcing OpenAI back to nonprofit roots amid planned IPO.
- Emails show Musk pushed for-profit structure in 2017 but now sues to protect original humanitarian AI vision against corporate greed.
Musk’s Tense Testimony on Day Two
On April 29, 2026, Elon Musk returned to the stand in Oakland federal court for direct examination in his lawsuit against OpenAI. Testimony focused on emails from 2017 where Musk directed Jared Birchall to explore a for-profit entity while demanding majority control as the primary funder. Musk admitted, “I literally was a fool,” expressing regret for funding what became a closed-source giant. The session ended early due to time limits, building tension for cross-examination.
Origins of the OpenAI Betrayal
OpenAI launched in 2015 as a nonprofit by Musk, Sam Altman, and others to develop open-source AI for humanity’s benefit and counter existential risks. Musk provided nearly $45 million initially but exited in 2018 over disagreements. By 2019, OpenAI created a for-profit subsidiary to attract capital. The breaking point came in 2022 when Microsoft invested $10 billion, valuing OpenAI at $20 billion. Musk halted funding, texting Altman it was a “bait and switch” that stole a charity for profit.
Key Players and High Stakes
Musk, now leading rival xAI, seeks $130 billion in damages to OpenAI’s nonprofit arm, removal of Altman and President Peter Brockman, and a return to nonprofit status. Altman defends the shift as necessary for AI scaling, accusing Musk of jealousy after failing to gain control. Microsoft backs OpenAI to dominate AI. Judge Yvonne Gonzalez Rogers presides with a nine-person advisory jury. The case threatens OpenAI’s IPO and questions nonprofit integrity in tech.
Underreported Moments from the Stand
Court emails highlighted Musk rejecting OpenAI equity as a “bribe” post-Microsoft deal, labeling the organization a “for-profit main event.” Testimony contrasted Day One’s founding story with personal regrets and lost trust. OpenAI portrays Musk’s suit as competitive sabotage from his xAI launch. Supporters see it as defending AI safety and charitable missions against globalist corporate overreach that prioritizes profits over American innovation principles.
Trial Timeline and Broader Impacts
The trial began Monday with jury selection, Musk’s Day One on Tuesday outlining OpenAI’s origins, and Day Two on Wednesday revealing internal rifts. Thursday, April 30, schedules OpenAI’s cross-examination and Musk’s rebuttal. A Musk win could delay OpenAI’s IPO, reshape AI governance, and warn donors against “bait and switch” schemes. It intensifies debates on AI ethics, U.S. charitable foundations, and preventing Big Tech monopolies from eroding open innovation.
"4 things you missed from Elon Musk's testy second day on the stand at OpenAI trial" – Business Insider #SmartNews https://t.co/pmwOrfkEBg
— Kay Bruner (@bruner184644) April 30, 2026
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KRDO: Musk testifies for a second day in a suit that could change artificial intelligence
