Marketplace Tech Elon Musk is in court arguing that OpenAI abandoned its nonprofit model
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May 7, 2026 
Paresh Dave, Wired senior writer who covers tech and courtrooms, reports from the federal trial over OpenAI. He describes Musk's claims that OpenAI abandoned its nonprofit roots and the company’s defense that control remains with the nonprofit. He recounts tense courtroom scenes, dramatic testimony, and the broader implications for billionaire power in tech.
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Musk Claims OpenAI Strayed From Nonprofit Mission
- Elon Musk alleges OpenAI began as a charitable trust and his ~$38 million in donations were meant to keep it nonprofit for humanity's benefit.
- He claims a for-profit arm ended up holding IP, employees, and paper wealth for individuals, which he views as abuse of donations.
OpenAI Says Nonprofit Control Still Holds
- OpenAI counters that the nonprofit still exists and controls the for-profit, claiming the nonprofit effectively owns the company.
- They argue that structure preserves the mission and makes the nonprofit one of the largest foundations by ownership stake.
Heated Testimony Between Musk And OpenAI Founders
- Courtroom tension peaked with Elon accusing Sam Altman of stealing a charity and repeating that claim on the stand.
- Greg Brockman responded by portraying Elon as demanding control and unfit to lead AI, citing lack of AI expertise.