A courtroom clash over control and cash at OpenAI
Wilmington, Delaware, USATue May 19 2026
The legal battle between Elon Musk and OpenAI boiled down to timing and trust. Musk argued he was wronged because the company he helped start shifted from a nonprofit to a profit-driven lab. But the jury saw it differently. They ruled Musk waited too long to file his lawsuit. The case dragged on for three weeks, with both sides presenting sharp arguments about what OpenAI was supposed to be.
At the heart of the dispute was whether OpenAI betrayed its original mission. Musk called it a charity meant to benefit humanity, not investors. He even claimed the leaders transformed it into a money-making machine. But OpenAI’s lawyers pushed back. They argued Musk knew about the shift years ago. Why sue only after billions were on the line?
Control seemed to be the real issue. OpenAI’s team hinted Musk just wanted power. They pointed to old emails where Musk pushed for a big stake in the company. Altman, the CEO, even shared stories of Musk suggesting a Tesla merger to fund OpenAI. Later, after the lawsuit started, Musk’s own company made a takeover offer for OpenAI. Critics called it hypocritical—trying to buy a nonprofit while suing to stop the same thing.
Money loomed large in the debate. Brockman, OpenAI’s president, shared that Musk’s main goal was funding a Mars colony. That’s billion-dollar-level ambition. Meanwhile, Musk’s SpaceX got approval to issue stock tied to reaching a $7. 5 trillion valuation—partly for building a Martian city. The connection between AI and space travel wasn’t just a coincidence; it was a clue to Musk’s bigger plans.
AI safety also entered the courtroom. Musk claimed Google’s Larry Page didn’t care about the risks of AI destroying humanity. That debate got sidelined, though, after a judge limited how much the topic could be discussed. The judge even joked about Musk’s own companies working on AI—ironic, she said, for someone warning about its dangers.
Credibility took a hit on both sides. Musk’s lawyer accused OpenAI’s Sam Altman of lying during testimony. Altman wouldn’t fully endorse his own trustworthiness when pressed. OpenAI’s team fired back, mocking Musk’s influence outside his own industries. They called his AI claims overblown, saying his real focus was power, not progress.
In the end, the case wasn’t just about keeping OpenAI nonprofit. It was about who gets to decide its future. Musk wanted control. OpenAI wanted freedom. And the jury decided Musk’s timing was off.
https://localnews.ai/article/a-courtroom-clash-over-control-and-cash-at-openai-c4f10de5
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