Musk Testifies: OpenAI ‘Stealing’ Charity Would Destroy Foundation of Charitable Giving
On April 28, 2026, Tesla and SpaceX CEO Elon Musk took the stand in the highly anticipated lawsuit against OpenAI, delivering some of the most dramatic courtroom testimony yet in this closely watched legal battle.
The “Stolen Charity” Allegation
When asked by his attorney what the lawsuit was fundamentally about, Musk, dressed in a dark suit and tie, responded with a direct answer: “It’s actually very simple. It’s not okay to steal a charity. If it’s okay to loot a charity, the entire foundation of charitable giving will be destroyed.”
Musk’s testimony strikes at the heart of OpenAI’s transformation from a nonprofit research organization into a for-profit enterprise. In 2015, Musk co-founded OpenAI alongside Sam Altman and others, with the promise of advancing artificial intelligence in an open, nonprofit framework. However, as products like ChatGPT achieved massive commercial success, OpenAI gradually shifted toward a profit-driven corporate structure, now valued at over $100 billion.
OpenAI’s Counter: A Competitor’s Attack
OpenAI attorney William Savitt sharply questioned Musk’s motives during the proceedings. “We’re here because Mr. Musk didn’t get his way at OpenAI,” Savitt stated. “Because he’s a competitor, Mr. Musk will do anything to attack OpenAI.”
Savitt pointed out that Musk has since launched his own AI company, xAI, which produces the Grok series of models — a direct competitor to OpenAI’s ChatGPT. The lawsuit, therefore, is essentially a competitive strategy rather than a principled defense of charitable governance.
Judge Warns Both Sides to Restrain Themselves
The presiding judge issued a clear warning to both Musk and Altman, urging them not to use their respective social media platforms to influence the trial. This warning reflects the judge’s concern over the enormous social media influence wielded by both tech leaders — Musk owns the X platform (formerly Twitter), while Altman is also an active public communicator.
Background and Broader Implications
The core dispute in this lawsuit centers on OpenAI’s governance structure and mission shift. Musk alleges that OpenAI violated its original open and nonprofit commitments, turning AI technology meant to serve all of humanity into a profit-seeking enterprise.
Meanwhile, OpenAI argues that the transition to a for-profit structure was necessary to secure the funding required to advance AI research and development, and that its core mission remains “ensuring that artificial general intelligence benefits all of humanity.”
Regardless of the final ruling, this case will have profound implications for governance models across the AI industry. It is not only about OpenAI’s future direction but could also set a legal precedent for how tech startups can — or cannot — adjust their business models as they evolve.
Analysts note that a victory for Musk could create a dangerous precedent: allowing founders to file retroactive claims against transformed companies under the banner of “charity,” thereby significantly hindering tech startups’ ability to adapt their business models to developmental needs.
Source: BBC News - Musk says basis of charitable giving at stake in OpenAI lawsuit