OpenAI CEO Sam Altman testified in a California state court this week, rejecting accusations from Elon Musk regarding the company's mission [1].
The testimony represents a pivotal moment in a legal battle over the governance of artificial intelligence. The outcome could determine whether OpenAI's transition from a nonprofit to a commercial entity violated its original founding agreements.
Altman testified May 12-13, 2026 [2], in a Los Angeles jurisdiction. He rejected the premise that OpenAI abandoned its original nonprofit goals. Instead, Altman said that Musk was attempting to seize control of the company and mischaracterizing its current mission [1], [3].
The dispute stems from a lawsuit Musk filed in 2024 [1]. Musk alleges that OpenAI broke its promise to remain a nonprofit and misused his initial contributions for commercial purposes. According to court documents, Musk donated roughly $38 million to the organization [1].
During the proceedings, the defense focused on the evolution of the company's structure. Altman and OpenAI president Greg Brockman have said that the company's growth required a shift in operational strategy to compete in the AI sector [1], [3].
Musk continues to argue that the company's commercial pivot contradicts the spirit of its inception. The trial focuses on whether the financial resources provided by Musk were diverted from the public-good mandate of the original nonprofit charter [1], [4].
The court is now weighing these conflicting testimonies to determine if any breach of contract occurred during the transition to a capped-profit model [1], [2].
“Altman said that Musk was attempting to seize control of the company”
This trial highlights the tension between the rapid commercialization of AI and the ethical mandates of nonprofit charters. If the court finds that OpenAI breached its original mission, it could create a legal precedent affecting how other AI research labs structure their governance and funding models to avoid similar litigation.
