Elon Musk Sues OpenAI and Sam Altman, Jury Selection Begins in High-Stakes Trial
Musk calls Altman a 'scam' who 'looted' a $44M nonprofit for billions.
Elon Musk has escalated his long-running feud with OpenAI CEO Sam Altman into a high-stakes federal lawsuit, filed April 26, 2026, in San Francisco. Musk, who co-founded OpenAI in 2015 and donated $44 million, alleges that Altman and co-founder Greg Brockman 'looted' the nonprofit by pivoting to a closed-source for-profit model in 2019. The suit claims Altman secured billions from Microsoft, now valuing OpenAI at over $157 billion, while sidelining the original mission to develop safe AGI for humanity. Musk demands ~$150B be returned to a charitable trust and seeks to block OpenAI's corporate restructuring.
Altman fired back on X, calling Musk's claims 'incoherent' and a 'frivolous attack,' noting Musk quit the board in 2018 over disagreements and launched rival xAI. The lawsuit revives tensions from a 2024 case Musk dropped without explanation. Legal experts say Musk faces hurdles proving 'looting,' but the case spotlights AI governance debates amid rapid industry consolidation. OpenAI, now a capped-profit entity, defends its shift as necessary for scaling AGI safely. A hearing is set for May 15.
- Musk filed a federal lawsuit on April 26, 2026, accusing OpenAI and Altman of betraying its nonprofit roots.
- Musk claims Altman 'looted' the charity by shifting to for-profit, pocketing billions from Microsoft investments (now $157B+).
- Musk demands ~$150B returned to a charitable trust and seeks to block OpenAI's corporate restructuring.
Why It Matters
This case could set precedent for AI governance and nonprofit-to-profit conversions in the tech industry.