Elon Musk testifying in OpenAI trial, discussing his $38 million early investment in the AI company during legal proceedings.

Editorial illustration for Elon Musk testifies in OpenAI trial, referencing USD 38 M early investment

Elon Musk testifies in OpenAI trial, referencing USD 38...

Elon Musk testifies in OpenAI trial, referencing USD 38 M early investment

By AI Daily Post Edited by Brian Petersen, Editor-in-Chief

April 28, 2026 • 2 min read

Elon Musk took the stand Thursday, fielding questions about his role in the nonprofit‑turned‑capped‑profit venture that now powers ChatGPT. The courtroom buzzed as lawyers probed whether Musk’s early cash infusion shaped OpenAI’s direction or merely reflected a fleeting curiosity. While the tech is impressive, the legal battle hinges on the origins of the partnership that once linked a billionaire entrepreneur with a trio of AI researchers.

Here’s the thing: investors and founders didn’t always see eye‑to‑eye on how the organization should be run, especially when the prospect of merging the effort into Musk’s automotive empire surfaced. The testimony aims to clarify how much money changed hands, what expectations were set, and why the alliance eventually unraveled. Understanding those dynamics is crucial because the dispute now centers on liability and control, not just ambition.

The following passage pulls together the key facts that emerged from Musk’s answers, setting the stage for the deeper conflict over money, mission, and corporate structure.

The three were on the initial founding team of OpenAI, with Musk investing up to $38 million early on before the co-founders' relationship soured over disagreements over company structure and mission, including whether or not OpenAI should be folded into Musk-owned Tesla. Musk walked away and, years later, founded xAI -- his own direct competitor to OpenAI, which is now owned by Musk's SpaceX. In recent years, Musk has filed no less than four different lawsuits against OpenAI, many of which have since been dropped or dismissed. This one, though, names Altman, Brockman, Microsoft, and OpenAI itself as plaintiffs, and it has made it to jury trial in a California federal courtroom.

Elon Musk takes the stand in high-profile trial against OpenAI - The Verge AI

Musk’s testimony puts a personal face on a dispute that has long simmered behind boardroom doors. By recalling his $38 million early contribution, he underscores the depth of his initial commitment to the venture. Yet the same testimony also highlights how quickly that commitment unraveled, as the founding trio clashed over OpenAI’s structure, its mission and the prospect of folding the effort into Tesla.

Was the disagreement purely strategic, or did it hint at deeper philosophical divides? The record stops short of answering that, leaving the precise motivations ambiguous. Musk’s walk‑away, followed by years of silence, suggests a fracture that still colors the parties’ interactions.

Whether this courtroom showdown will reshape governance practices at AI labs remains uncertain. What is clear, however, is that the case brings the early financial stakes and divergent visions into public view, offering a rare glimpse into the origins of a now‑prominent organization. The ultimate impact on OpenAI’s future trajectory is still unclear.