OpenAI Trial Reaches Critical Stage as Musk’s Testimony Falters

On April 30, 2026, Elon Musk continued his testimony in federal court in San Francisco in his lawsuit against OpenAI, marking his third consecutive day on the witness stand. The four-week trial stems from Musk’s allegations that OpenAI abandoned its original nonprofit mission, and he is seeking to block the company from going public later this year.

According to Ars Technica, Musk stumbled at least seven times during his testimony, potentially jeopardizing his chances of winning the case.

Key Stumble #1: Forced Concessions Under Cross-Examination

OpenAI’s lawyers successfully pressured Musk into making several unfavorable concessions over his own lawyers’ objections. Musk admitted that he had already ceased involvement in OpenAI’s day-to-day operations by 2018 and was considering building a competing AI system before 2019. This directly undermines Musk’s core narrative that “OpenAI betrayed him.”

Key Stumble #2: xAI Safety Record Exposed

Perhaps the most damaging development was Musk’s failure to keep his xAI company’s safety record out of evidence. Musk has long positioned himself as a “champion of AI safety,” frequently warning that artificial intelligence poses an existential threat to humanity. However, when xAI’s own safety practices were scrutinized, his image as an “AI savior” came into serious question. Court records revealed that xAI had significant gaps in model safety testing and red team exercises.

Key Stumble #3: Inconsistent Statements

During cross-examination, Musk gave repeatedly inconsistent testimony. He claimed on one hand that OpenAI should not have transitioned from a nonprofit to a for-profit entity, while on the other acknowledging that he had already assembled a competing AI team when he left OpenAI. The judge repeatedly called for restraint from both sides, but Musk appeared visibly tired and irritable on the stand.

Background

Musk was a co-founder of OpenAI, launching the company alongside Sam Altman and others in 2015. He stepped down from OpenAI’s board in 2018, citing conflicts of interest with Tesla’s AI ambitions. In 2023, he founded xAI, which has since released the Grok series of large language models, competing directly with OpenAI’s ChatGPT.

What’s Next

The outcome of this trial will not only determine whether OpenAI can proceed with its IPO but could also have far-reaching implications for AI governance and intellectual property across the industry. If Musk prevails, OpenAI may be forced to maintain its nonprofit status, and Sam Altman’s leadership could be challenged. If OpenAI wins, it clears the path for a public offering.

Sam Altman and other key witnesses are expected to testify in the coming weeks. The case remains highly unpredictable.

Source: Ars Technica