Musk Claims OpenAI Lawyer Tricked Him While Citing $38 Million Charity Donation

Musk took the stand for the second day of a lawsuit that could reshape the governance of one of the world’s most influential AI firms. He faced cross‑examination by OpenAI attorney William Savitt, who pressed him on the consistency of his non‑profit stance.

Musk interrupted Savitt, “Your questions are not simple. They’re designed to trick me essentially,” and warned that taking money from a charity “undermines charitable giving.” He reminded the court that he contributed $38 million to OpenAI’s nonprofit entity, a sum he says was intended to keep the organization focused on public benefit.

OpenAI’s lawyer countered that Musk’s lawsuit stems from a loss of control and a desire to damage a rival. Savitt argued Musk is using the case to “bully” former co‑founders and to weaken a competitor that now threatens his own AI startup, xAI. He added that Musk’s actions reflect a broader strategy to attack OpenAI after being denied a leadership role.

The dispute began when Musk sued co‑founders Sam Altman and Greg Brockman, alleging they steered OpenAI away from its original nonprofit mission toward a for‑profit model that now includes a commercial arm and billions of dollars of external investment. Musk claims the shift violated a charitable trust and seeks “wrongful gains” to fund the nonprofit side and to force a leadership overhaul.

OpenAI maintains that Musk was aware of the commercial expansion and left the company after failing to secure the control he wanted. The firm also notes that the $38 million donation was spent exactly as intended, supporting the mission rather than being misappropriated.

Legal experts say the case could set precedent for how charitable contributions intersect with corporate governance in the fast‑moving AI sector. If Musk succeeds, OpenAI may be forced to reallocate funds and restructure its leadership, potentially slowing its commercial rollout.

The trial, expected to run for several weeks, will hear testimony from Altman and other executives. Observers will watch whether the court prioritizes the original nonprofit intent or the realities of a market‑driven AI ecosystem.

What to watch next: The judge’s ruling on Musk’s claim for billions in “wrongful gains” and any court‑ordered changes to OpenAI’s governance structure.