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Musk Takes the Stand Against OpenAI in Trial That Could Reshape AI Industry

Published April 29, 2026 at 5:00 am | By A. Preston Acker, Staff Reporter

Musk Takes the Stand Against OpenAI in Trial That Could Reshape AI Industry

An Oakland federal courtroom dominated the tech world Tuesday as Elon Musk took the witness stand in his lawsuit against OpenAI and its CEO Sam Altman, a civil trial before a nine-person advisory jury that could reshape one of the world’s most powerful AI companies.

Musk donated at least $38 million to OpenAI when it launched as a nonprofit in 2015. He accuses Altman and OpenAI President Greg Brockman of abandoning that mission, steering the organization into a for-profit enterprise now valued at roughly $852 billion. He is seeking damages exceeding $130 billion, the removal of both executives, and a court order to reverse the conversion.

During roughly two hours of testimony, Musk traced the nonprofit idea to a dispute with Google co-founder Larry Page, who reportedly dismissed his AI safety concerns by calling him a speciesist for prioritizing human survival. Musk predicted AI could surpass human intelligence as early as next year, comparing the challenge of guiding its development to raising a child: you cannot fully control it, but you can try to instill values.

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OpenAI attorney William Savitt countered that Musk used funding pledges to pressure the founders, sought to own more than 50 percent of a for-profit entity, and pushed to merge the company with Tesla. Savitt argued Musk left in 2018 after failing to gain total control and that the lawsuit is driven by jealousy over a rival’s rise. Microsoft, named as a co-defendant, called the claims factually unsupported. Judge Yvonne Gonzalez Rogers warned Musk to stop posting social media attacks about the case; all parties agreed to limit public commentary.

For Upstate South Carolina, the verdict carries practical stakes. Wofford College in Spartanburg and USC Upstate both run programs that depend on commercially licensed AI platforms. BMW Manufacturing in Spartanburg County and Milliken and Company, headquartered in Spartanburg, have integrated AI tools into manufacturing and workforce pipelines. A ruling disrupting OpenAI’s structure could affect pricing and access across the region. Altman and Microsoft CEO Satya Nadella are among witnesses expected before proceedings wrap around May 21.

What's Happening
What is Elon Musk accusing OpenAI and Sam Altman of in this trial?
Musk accuses Altman and OpenAI President Greg Brockman of abandoning OpenAI’s founding mission as a nonprofit. He testified that OpenAI’s founding charter stated it was not established for the personal gain of any individual and that he donated at least $38 million on that basis. He is seeking more than $130 billion in damages and a court order to reverse the company’s for-profit conversion.
What did Musk say about the future of AI during his testimony?
Musk told the nine-person jury that he expects AI to be smarter than any human as early as next year. He compared developing advanced AI to raising a child, noting that while you cannot fully control a child once grown, you can try to instill values such as honesty and integrity. He described himself as extremely concerned about the long-term risks of AI surpassing human intelligence.
How does OpenAI respond to the lawsuit?
OpenAI attorney William Savitt told jurors the case exists because Musk did not get his way at OpenAI. Savitt argued Musk used funding pledges to pressure founding members, sought to own more than 50 percent of a for-profit entity, and tried to merge OpenAI with Tesla. OpenAI maintains Musk left in 2018 after failing to gain total control and that his lawsuit is motivated by jealousy over a competing AI company’s rise.
A. Preston Acker
HERESpartanburg · BUSINESS

A. is a staff reporter for HERE Spartanburg covering local news, community stories, and developments across Spartanburg County. A. is committed to accurate, community-first journalism.

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