Elon Musk is seeking up to $134 billion in damages from OpenAI and Microsoft in a federal trial that began in early May 2026, with explosive testimony revealing Musk’s attempts to recruit Sam Altman to Tesla and threatening text messages sent just days before proceedings began. According to court filings, Musk wants the court to unwind OpenAI’s 2024 restructuring and remove Altman and Greg Brockman from their leadership roles.
The lawsuit centers on Musk’s claim that Altman and Brockman deceived him into donating $38 million to what he believed would remain a nonprofit dedicated to developing AI for humanity’s benefit. MIT Technology Review reported that Musk alleges the pair “tricked him into giving the company money, only to turn their backs on their original goal” when OpenAI accepted billions from Microsoft and created a for-profit subsidiary.
Key Testimony Exposes Behind-the-Scenes Maneuvering
Shivon Zilis, a former OpenAI board member and mother of four of Musk’s children, testified Wednesday that Musk attempted to recruit Altman to lead a “world-class AI lab” within Tesla in early 2018. According to Wired, emails presented in court showed Musk offering Altman a Tesla board seat as part of the recruitment effort.
Greg Brockman’s testimony directly contradicted Musk’s narrative, arguing that Musk himself had pushed for OpenAI to create a for-profit structure and “fought a bitter battle to have absolute control over it.” The Verge reported that OpenAI’s legal team characterized Musk’s lawsuit as retaliation for not getting his way, now attempting to “undermine a competitor to his own AI company, xAI.”
Former CTO Mira Murati’s videotaped deposition provided new details about Altman’s November 2023 ouster, when the board cited him as “not consistently candid in his communications.” The testimony offered the first concrete look behind the scenes of that dramatic weekend that shook the AI industry.
Threatening Messages Surface Before Trial
Two days before the trial began, Musk sent threatening text messages to Brockman after suggesting a settlement. TechCrunch reported that when Brockman suggested both sides drop their suits, Musk responded: “By the end of this week, you and Sam will be the most hated men in America. If you insist, so it will be.”
While the judge ruled the text exchange inadmissible, OpenAI’s lawyers used the messages to argue that Musk’s motivations stem from financial interests rather than AI safety concerns. The filing suggested Musk was attempting to “demand money from [OpenAI’s] success while kneecapping a rival.”
Microsoft CEO Set to Testify
Microsoft CEO Satya Nadella is scheduled to appear Monday, May 11th, followed by former OpenAI chief scientist Ilya Sutskever. Bloomberg reported that Microsoft maintains a 27% stake in OpenAI and access to AI models through 2032 under their current agreement.
The trial’s outcome could significantly impact OpenAI’s planned IPO at a valuation approaching $1 trillion. Meanwhile, xAI, which Musk founded in 2023, is now a division of SpaceX, creating a direct competitive dynamic between the companies.
OpenAI’s Defense Strategy
OpenAI’s legal team has characterized Musk’s lawsuit as having “sour grapes” after his failed attempt to control the company in 2017. According to The Verge, OpenAI argues that Musk left the board when he couldn’t gain “absolute control” and is now using litigation to damage a competitor.
The company’s lawyers presented evidence suggesting Musk’s efforts to “corrupt OpenAI and absorb it into Tesla” were part of a broader strategy to control AI development. Zilis served as a key conduit between Musk and Altman during these negotiations, according to court testimony.
What This Means
This trial represents the highest-stakes legal battle in AI’s brief commercial history, with implications extending far beyond the immediate parties. If Musk succeeds in unwinding OpenAI’s for-profit structure, it could fundamentally alter how AI companies organize and raise capital. The $134 billion damage claim, if awarded, would rank among the largest corporate judgments in U.S. history.
The testimony reveals the intense personal and financial conflicts that shaped OpenAI’s evolution from nonprofit research lab to the world’s most valuable AI company. With Microsoft’s massive investment at stake and OpenAI’s IPO plans hanging in the balance, the trial’s outcome will likely influence the entire AI industry’s trajectory.
The case also highlights the tension between AI safety advocacy and commercial interests, as both sides claim to represent humanity’s best interests while pursuing vastly different business models.
FAQ
What is Elon Musk seeking in his lawsuit against OpenAI?
Musk wants up to $134 billion in damages, removal of Sam Altman and Greg Brockman from leadership, unwinding of OpenAI’s for-profit restructuring, and termination of Microsoft’s licensing agreement. He claims OpenAI abandoned its nonprofit mission after he donated $38 million.
Why did Musk leave OpenAI’s board in 2018?
According to OpenAI’s defense, Musk left after failing to gain “absolute control” of the company. Testimony revealed he attempted to recruit Sam Altman to Tesla and push for a for-profit structure under his control before departing.
How could this trial affect OpenAI’s IPO plans?
The trial threatens OpenAI’s planned IPO at nearly $1 trillion valuation. If Musk succeeds in unwinding the for-profit structure or securing massive damages, it could fundamentally alter the company’s value and organizational structure, potentially derailing public offering plans.
Sources
- Live updates from Elon Musk and Sam Altman’s court battle over the future of OpenAI – The Verge
- Musk v. Altman week 2: OpenAI fires back, and Shivon Zilis reveals that Musk tried to poach Sam Altman – MIT Technology Review
- Mira Murati’s deposition pulled back the curtain on Sam Altman’s ouster – The Verge
- Elon Musk sent ominous texts to Greg Brockman, Sam Altman after asking for a settlement, OpenAI claims – TechCrunch
- Elon Musk’s Last-Ditch Effort to Control OpenAI: Recruit Sam Altman to Tesla – Wired
