William Savitt leads Sam Altman's defence in Elon Musk's OpenAI trial
Updated
Updated · Business Insider · May 3
William Savitt leads Sam Altman's defence in Elon Musk's OpenAI trial
11 articles · Updated · Business Insider · May 3
The case is unfolding in federal court in Oakland, where Savitt is arguing Musk wants to weaken OpenAI to benefit his rival AI company xAI.
Musk alleges Altman betrayed OpenAI's nonprofit mission by backing its transformation into a public benefit corporation and corporate powerhouse, a change he wants reversed.
Savitt previously forced Musk to complete his 2022 Twitter takeover and has longstanding ties to OpenAI through Wachtell's work on restructuring, fundraising and Altman's 2023 board crisis.
If Elon Musk’s lawsuit is about nonprofit principles, why did his for-profit AI company use OpenAI's own technology?
Can OpenAI’s new structure truly protect humanity’s interests over its massive $500 billion valuation and for-profit goals?
With Sam Altman holding zero equity, what is his ultimate incentive in OpenAI's pivot to a for-profit model?
The $150 Billion AI Showdown: Musk vs. OpenAI Over Mission Betrayal and Corporate Control
Overview
In May 2026, Elon Musk testified in a high-profile trial accusing OpenAI of betraying its original nonprofit mission by shifting to a for-profit model. The dispute traces back to OpenAI's founding in 2015 as a nonprofit with Musk's $38 million funding, but by 2017, the founders recognized the need for massive capital, leading Musk to propose a for-profit structure. After Musk left the board in 2018 amid control disputes, OpenAI launched ChatGPT and secured major investments, culminating in a 2024-2025 restructuring that reduced the nonprofit's stake and lifted profit caps. Musk's $150 billion lawsuit claims this broke the charitable trust, while OpenAI counters that Musk's suit is driven by personal ambition and that the changes were necessary for survival. The trial could set important precedents for nonprofit-to-for-profit transitions and AI governance.