Inside the $157 Billion Legal Battle Between Elon Musk and OpenAI
San Francisco, Tuesday, 28 April 2026.
Elon Musk’s high-stakes trial against OpenAI has begun, with the billionaire seeking up to $157 billion after alleging Sam Altman illegally transformed the nonprofit into a corporate giant.
A Clash of Tech Titans in Oakland
Opening arguments commence today, Tuesday, 28 April 2026, at the Ronald V. Dellums U.S. Courthouse in Oakland, California [3][5]. The federal trial pits Elon Musk against OpenAI CEO Sam Altman in a dispute that centers on the foundational mission of the artificial intelligence giant [1][6]. Musk is seeking up to USD 157,000,000,000 in damages, alleging that Altman and OpenAI President Greg Brockman illegally transformed the organization from a tax-exempt charity into a massive for-profit enterprise [8].
The Core of the Dispute: Nonprofit vs. Profit
The conflict stems from OpenAI’s origins in 2015, when it was established as a nonprofit research center designed to create open-source technology for public benefit [2][6]. Musk provided substantial early funding, with court documents indicating contributions ranging from roughly USD 38,000,000 to over USD 44,000,000 [2][4][8]. Following a power struggle, Musk departed the board in 2018 [2][4]. By 2019, OpenAI established a for-profit subsidiary to raise capital, a move that enabled the scaling necessary to launch ChatGPT in late 2022 [4][8].
Escalating Rhetoric and Financial Stakes
As the trial approached, the public animosity between the two billionaires reached new heights. Just yesterday, Musk amplified a critical exposé on Altman via his social media platform, X, referring to his former partner as “Scam Altman” and declaring that he and Brockman “stole a charity” [1][3]. OpenAI has firmly rejected these allegations, characterizing the lawsuit as a “baseless and jealous bid to derail a competitor” [2][3]. The defense contends that Musk fully understood the necessity of transitioning to a for-profit model to secure funding and previously attempted to merge OpenAI with his own company, Tesla [2][6].
What Lies Ahead in the Courtroom
Scheduled to run for four weeks, the trial will feature testimony from a cast of prominent tech executives [6]. Alongside Musk and Altman, expected witnesses include Microsoft CEO Satya Nadella and former OpenAI board members [5][6]. Internal communications are anticipated to play a pivotal role in the proceedings; among the thousands of pages of documents revealed in court is a 2017 diary entry by Brockman questioning whether Musk was the “glorious leader” he would choose to follow [7].