Altman Testifies in Musk’s $150B Lawsuit Over OpenAI’s Mission in Oakland
Sam Altman testified on May 12, 2026, in Oakland as Elon Musk’s $150B lawsuit against OpenAI went to trial.
Why it matters: This case tests legal and governance standards in AI development. General counsel and corporate leaders are watching for precedent on board oversight, mission drift, and executive removal.
- OpenAI CEO Sam Altman and President Greg Brockman testified on May 12 and 13, 2026, in Oakland federal court.
- Musk’s lawsuit, filed in February 2024, seeks $150B for an OpenAI nonprofit and removal of Altman and Brockman.
- Musk claims OpenAI broke its agreement to focus on advancing AI for public benefit, not private profit.
- Former CTO Mira Murati and ex-board member Shivon Zilis described friction and poor communication inside OpenAI.
Sam Altman took the stand on May 12, 2026, defending OpenAI in a high-stakes federal trial in Oakland. The suit, brought by Elon Musk in February 2024, alleges OpenAI’s leadership broke their founding commitment to keep the company’s focus on open, nonprofit research for the public good as it became a profitable leader in artificial intelligence.
- Musk, a founding donor, is seeking $150 billion in damages to fund a new OpenAI nonprofit and aims to oust Altman and Greg Brockman from leadership. The suit claims OpenAI’s current board and leaders shifted to prioritize profits for commercial partners and investors. The company was valued at $852 billion in March 2026, underlining these high financial stakes.
- Testimony highlighted boardroom and staff conflicts. Former CTO Mira Murati described what she saw as executives being "pit against each other" and repeated communication breakdowns during high-profile launches like ChatGPT. Shivon Zilis, a former board member, also recalled a lack of board involvement in product disclosures.
- Microsoft CEO Satya Nadella, who has invested over $13 billion in OpenAI since 2019, called Microsoft’s backing a “calculated risk” during trial testimony, emphasizing how critical partner trust is as AI becomes foundational for business.
- Chairman Bret Taylor testified that Altman has been "forthright" with OpenAI's board but acknowledged lingering concerns about putting a nonprofit under the control of for-profit investors—an issue at the heart of Musk’s allegations.
OpenAI, according to Musk, was established in 2015 as an open research nonprofit, meant to serve as a “counterbalance to Google.” The transition to a structure that now rewards investors has become the focus of debate over how AI organizations should be governed and what legal safeguards boards must enforce when missions change.
By the numbers:
- $150 billion — damages Elon Musk seeks for a new OpenAI nonprofit
- $13 billion — Microsoft’s investment in OpenAI since 2019
- $852 billion — OpenAI’s March 2026 valuation
Yes, but: The court has yet to decide whether OpenAI’s mission change violates the law or just business norms.
What's next: Closing arguments are scheduled for June 3, 2026, with a judgment expected later that month.