Elon Musk Testifies in Federal Court That OpenAI Shifted from Nonprofit Mission After Microsoft's $10 Billion Investment in 2023

Musk appeared as the first witness in his lawsuit against Sam Altman and OpenAI, claiming the company abandoned its nonprofit structure and safety focus when Microsoft agreed to invest $10 billion in 2023, moving intellectual property and staff to a for-profit entity.

Musk told the court he initially accepted a small for-profit arm to raise funds for hiring and computing, but objected when the arrangement went too far: "The museum store sold the Picassos so they were locked up where no one could see them," his attorney said, comparing it to a nonprofit museum whose proceeds from a for-profit store had compromised the mission.

OpenAI's attorneys argued Musk never received a promise the company would remain nonprofit or publish all code, and that Musk knew about plans to raise corporate investment exceeding $10 billion as far back as 2018. They also noted Musk pledged to invest up to $1 billion but delivered about $38 million over five years, and filed the lawsuit only after founding competitor xAI in 2023.

The trial could result in governance changes at OpenAI that may complicate its plans for an initial public offering as soon as this year. Musk will return to the stand on Wednesday for cross-examination.