Musk Retakes Stand on Day 3 of Landmark OpenAI Trial as $130 Billion Lawsuit Intensifies

By Hector Herrera | April 29, 2026

Elon Musk returned to the witness stand Wednesday in federal court as his lawsuit against OpenAI and CEO Sam Altman entered its third day — a trial that could force the world's most valuable AI lab to revert to its nonprofit roots and strip its top two executives of their board seats. The stakes are enormous: Musk is seeking $130 billion in damages and demanding structural changes that would reshape how OpenAI operates.

Background

Musk co-founded OpenAI in 2015 alongside Sam Altman and others, contributing early funding with the stated mission of building artificial general intelligence for the benefit of humanity — not shareholders. He departed the board in 2018, citing disagreements over the lab's direction. When OpenAI restructured into a "capped-profit" company in 2019 and later deepened its relationship with Microsoft — which has committed over $13 billion in investment — Musk publicly accused Altman of betraying the nonprofit mission. He filed this lawsuit in early 2024, and it has escalated steadily since.

What's Happening in Court

On Day 3, Musk resumed his testimony under questioning that has so far covered his original intentions as a co-founder, his financial contributions, and his claims that OpenAI's current structure violates the founding charitable mission. According to CNBC's live trial coverage, Jared Birchall — who manages Musk's family office and holds executive roles at both xAI and Neuralink — is next on the witness list.

Key claims in the case:

• $130 billion in damages sought by Musk
• Musk wants OpenAI returned to nonprofit status
• He's demanding the removal of Sam Altman and Greg Brockman from OpenAI's board
• The case is proceeding in federal court, elevating its precedential weight

OpenAI has denied the core allegations, arguing that Musk departed voluntarily, that the restructuring was lawful, and that the company's mission has not changed. Altman is expected to testify as proceedings continue.

Why This Matters

This trial is not just a billionaire dispute — it's a legal test of whether an AI lab can migrate from nonprofit to for-profit status without violating its founding charitable obligations. The outcome could set precedent for how AI organizations structure themselves and what obligations early donors or co-founders retain.

For the broader AI industry, the implications are significant:

• Nonprofit-to-profit transitions at AI labs could face new legal scrutiny
• Board accountability at AI companies may become a litigation target if governance structures shift after founding
• If Musk prevails even partially, it could complicate OpenAI's planned IPO and its ongoing negotiation with the California and Delaware attorneys general over its restructuring

OpenAI recently reached a partial agreement with California Attorney General Rob Bonta over its conversion, but Musk's lawsuit operates on a separate legal track — and the damages figure alone gives the case enormous leverage.

What to Watch

The testimony of Jared Birchall and Sam Altman will be decisive. Birchall can speak to Musk's early financial expectations; Altman will need to defend both his stewardship of the company and the nonprofit-to-profit transition. Closing arguments and a verdict could reshape the legal landscape for AI governance before summer.