Tesla CEO Elon Musk and OpenAI CEO Sam Altman faced off in court on Monday, April 27, 2026, in a high-stakes trial that could reshape the future of artificial intelligence. The legal battle centers on Musk's allegations that Altman betrayed OpenAI's original nonprofit mission by turning it into a for-profit enterprise now valued at $852 billion.
Jury Selection Underway
Jury selection began at the Ronald V. Dellums Federal Building and US Courthouse in Oakland, California. Musk, who co-founded OpenAI with Altman in 2015, accuses his former partner of double-crossing him and shifting the company toward profit generation behind his back. Musk seeks an unspecified amount of damages to fund OpenAI's charitable arm and demands Altman's removal from the board.
Musk's Accusations
In a post on X, Musk wrote: "Scam Altman and Greg Stockman stole a charity. Full stop. Greg got tens of billions of stock for himself and Scam got dozens of OpenAI side deals with a piece of the action for himself, Y Combinator style. After this lawsuit, Scam will also be awarded tens of billions in stock directly. The fundamental question is simply this: Do you want to set legal precedent in the United States that it is ok to loot a charity? If so, you undermine all charitable giving in the United States forever."
Musk further stated: "I could have started OpenAI as a for-profit corporation. Instead, I started it, funded it, recruited critical talent and taught them everything I know about how to make a startup successful FOR THE PUBLIC GOOD. Then they stole the charity."
OpenAI's Response
OpenAI dismissed Musk's allegations as "sour grapes" and an attempt to hinder its growth while boosting Musk's own AI company, xAI, and its chatbot Grok. The company called the lawsuit a "baseless and jealous bid to derail a competitor." In a statement on X, OpenAI said: "We can't wait to make our case in court where both the truth and the law are on our side. This lawsuit has always been a baseless and jealous bid to derail a competitor. We'll also finally have the chance to question Mr. Musk under oath before a jury of Californians about this attempt to undermine our work to ensure that artificial general intelligence benefits all of humanity."
Potential Impact on AI
The trial's outcome could redefine the trajectory of artificial intelligence, a technology increasingly feared as a job killer and a potential threat to humanity's survival. Opening statements could begin as early as Tuesday. Presiding Judge Yvonne Gonzalez Rogers will make the final decision, with the jury serving as an advisor.
History of the Falling Out
Musk stepped down as OpenAI co-chair in 2018 but continued donating until 2020, contributing a total of $44 million. However, he grew dissatisfied with OpenAI's shift to a for-profit model and halted funding, leading to a bitter rift with Altman. The dueling testimonies are expected to shed light on the thinking that triggered the AI race and the personal breakdown between the two billionaires.
Their friendship began in 2015 when they agreed to build AI responsibly and safely, unlike profit-driven competitors such as Google (co-founded by Larry Page and Sergey Brin) and Facebook (founded by Mark Zuckerberg). The break was captured in a February 2023 email exchange that surfaced as evidence. Altman wrote: "You're my hero... I am tremendously thankful for everything you've done to help – I don't think OpenAI would have happened without you — and it really (expletive) hurts when you publicly attack OpenAI." Musk responded: "I hear you and it is certainly not my intention to be hurtful, for which I apologize, but the fate of civilization is at stake."
