Startups & Funding

Did you know you can’t steal a charity? Don’t worry. Elon Musk will remind you.

Musk spent 3 days on the stand, emails and tweets surface

Deep Dive

Elon Musk took the witness stand for three days this week in his high-profile lawsuit against OpenAI, and the proceedings are already revealing dramatic internal communications. Musk's central argument is that OpenAI's conversion from a nonprofit to a for-profit entity constitutes a betrayal of the founding mission: "to benefit humanity." He has repeatedly told the courtroom, "You can't steal a charity." Emails, text messages, and even Musk's own tweets have been entered as evidence, painting a picture of early tensions between Musk and CEO Sam Altman over the direction of the AI company. The case hinges on whether the shift to a for-profit structure violated the original nonprofit agreement that Musk helped fund.

Beyond the courtroom drama, the Equity podcast episode from TechCrunch also covered Big Tech earnings, revealing that cloud services from AWS, Google, and Microsoft were the clear winners, indicating where enterprise AI spending is actually landing. Other segments discussed a scholarship app founder suing Sallie Mae over data sales, BMW i Ventures' new $300 million AI-focused fund, and defense tech startup Scout AI's pitch for "military AGI" using vision-language-action (VLA) models. However, the Musk-OpenAI lawsuit remains the headline story, with Sam Altman expected to testify soon. The outcome could set a precedent for how AI companies balance profit motives with their original public-benefit missions.

Key Points
  • Musk spent three days on the witness stand arguing OpenAI's for-profit conversion betrays its nonprofit mission.
  • Emails, texts, and Musk's own tweets have been presented as evidence in court.
  • The case continues with additional witnesses, including OpenAI CEO Sam Altman, expected to testify.

Why It Matters

This lawsuit could redefine how AI startups balance profit motives with nonprofit founding missions.