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Musk says basis of charitable giving at stake in OpenAI lawsuit
Opening statements in a California trial pit OpenAI co-founders Sam Altman and Elon Musk against each other over OpenAI's charitable status and governance. Musk contends the case centers on protecting charitable giving, while OpenAI argues he aims to kneecap a competitor. The judge declined a gag order as the trial unfolds.
Why It Matters
The case tests the boundaries of charitable foundations within high-profile AI ventures and could influence governance and ownership dynamics as AI development accelerates.
Timeline
5 Events
April 28, 2026: Trial opens; Musk testifies; gag order denial
April 28, 2026
The trial opened in Oakland, California. Musk testified, saying, 'It's actually very simple... It's not okay to steal a charity... If it's okay to loot a charity, the entire foundation of charitable giving will be destroyed.' OpenAI's lawyers argued Musk sought to kneecap a competitor and win billions in 'wrongful gains' to fund the nonprofit arm, while Altman and Brockman argued Musk wanted to merge OpenAI with Tesla and bully through investment. The judge, Judge Yvonne Gonzalez Rogers, declined to impose a gag order, and Altman is expected to testify as well.
April 27, 2026: Jury selected and Musk posts on X
April 27, 2026
As the jury was chosen for the California trial, Musk posted on X referring to Sam Altman as 'Scam Altman'.
2023: xAI debuts
2023
xAI debuted in 2023, one year after ChatGPT hit the market. The company produced the Grok chatbot.
2018: OpenAI opens a commercial arm
2018
OpenAI decided to open a commercial arm in 2018, kicking off the commercial AI market.
2015: Obama meeting influences Musk's AI involvement and OpenAI donations
2015
After a 2015 meeting with then-President Barack Obama, Musk's involvement in AI grew. He had donated about $38 million to OpenAI over several years while it operated as a nonprofit.