Elon Musk is in court arguing that OpenAI abandoned its nonprofit model
Marketplace All-in-One
Marketplace
4.5 • 1.4K Ratings
🗓️ 7 May 2026
⏱️ 11 minutes
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Summary
Back in 2015, Elon Musk and Sam Altman got the idea to start a nonprofit AI lab to develop artificial general intelligence that benefits all humanity. The lab would also make its technology open source, calling it OpenAI.
All that is according to a complaint filed by Elon Musk, who has since parted ways with the organization. And now he is suing OpenAI, its CEO Sam Altman and its president Greg Brockman, saying they have abandoned the founding principles of the organization in pursuit of profits.
They are currently facing off in federal court in the Northern District of California. Paresh Dave at Wired has been in the courtroom. He explains more on what the core of Musk's case is.
Transcript
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| 0:00.0 | It's Musk versus Open AI, and everyone is watching. |
| 0:05.8 | From American Public Media, this is Marketplace Tech. |
| 0:08.5 | I'm Stephanie Hughes. |
| 0:18.9 | Back in 2015, Elon Musk and Sam Altman got the idea to start a non-profit AI lab. |
| 0:26.0 | The goal was to develop artificial general intelligence to benefit all humanity. |
| 0:31.0 | The lab would also make its technology open source, so they called it open AI. |
| 0:36.5 | That's according to a complaint filed by Elon Musk, who has since |
| 0:39.7 | parted ways with the organization. He is now suing OpenAI, its CEO, Sam Altman, and its president |
| 0:46.1 | Greg Brockman, saying they have abandoned the founding principles of the organization in pursuit |
| 0:51.4 | of profits. They are currently facing off in federal court in the Northern District of California. |
| 0:57.8 | Poreshda Veil of Wired has been in the courtroom. |
| 1:00.2 | I asked him what the core of Musk case is. |
| 1:03.3 | Musk is saying that there was a charitable trust that existed. |
| 1:08.0 | This agreement when he made donations totaling eventually around $38 million |
| 1:13.1 | over several years, that there was this implicit agreement that it would further a nonprofit |
| 1:22.2 | that would develop AI research for the benefit of humanity and that no, you know, individual would benefit from this |
| 1:30.8 | nonprofit. And in turn, he says OpenAI has a for-profit entity. A nonprofit is still in control, |
| 1:39.1 | but it has this for-profit entity that actually holds all the intellectual property, all the technology, all the |
| 1:45.4 | employees. And there are people who have become very wealthy as a result of open AI, at least on, |
| 1:52.5 | in many cases, paper. And Elon says that that is not what he intended. And his donations were |
| 2:00.3 | abused. People were unjustly enriched, and that |
| 2:03.6 | was very concerning to him. Well, how has the Open AI team responded to Musk's allegations? |
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