Exchanges Intensify in OpenAI Trial as Musk Testifies, Judge Cuts AI Safety Debate

Courtroom Showdown: Musk vs. OpenAI

Elon Musk clashed with OpenAI's attorney for a third consecutive day on Thursday during the high-stakes trial over the ChatGPT maker's transition from a nonprofit to a for-profit entity valued at hundreds of billions of dollars. The legal battle, which pits the world's wealthiest individual against co-founder Sam Altman, has seen both sides trade barbs as the trial enters its second week in federal court in Oakland, California.

Judge Yvonne Gonzalez Rogers intervened early Thursday, squashing broader discussions about artificial intelligence dangers. "This is not a trial on the safety risks of artificial intelligence," she declared, warning that such debates would derail the core issues. "It could be one day in a federal court in this country that we may have that trial. That is not this trial."

On the stand, Musk accused opposing counsel William Savitt of intentionally misleading him with loaded questions. "Few answers are going to be complete, especially if you cut me off all the time," Musk retorted during a tense exchange about profit caps. He argued that a sufficiently high cap would effectively make OpenAI a for-profit enterprise.

Savitt pressed Musk on prior testimony, asking whether he had fully answered questions the previous day. Musk fired back: "It depends on how high the cap is — if it's super high, then it's really a for-profit."

Background: From Nonprofit Pledge to Billion-Dollar Lawsuit

OpenAI was founded in 2015 as a nonprofit research lab, with Musk contributing the bulk of early funding. The founding agreement, according to Musk, promised the company would remain dedicated to humanity's benefit, not shareholder profits. However, the organization pivoted to a for-profit model in 2019, a move Musk now claims is a betrayal of that original commitment.

OpenAI's lawyers maintain there were no permanent nonprofit promises. They also allege Musk's lawsuit is a strategic move to impede OpenAI's rapid growth while promoting his own rival venture, xAI, which he launched in 2023.

The trial is expected to continue through late May. Judge Rogers excused Musk from the witness stand Thursday but left open the possibility of recalling him. "Your client, despite these risks, is creating a company that is in the exact same space," she noted to Musk's legal team, referring to xAI.

What This Means for AI's Future and Corporate Governance

The outcome could set a major precedent for how startups governed by nonprofit ideals can legally transition to for-profit structures. If Musk wins, it may force OpenAI to revert to its nonprofit status or impose strict profit caps—potentially reshaping the financial incentives driving AI development.

Conversely, a victory for OpenAI could embolden other tech companies to adopt nonprofit missions early on, only to monetize later. The judge's restraint on AI safety talk underscores that this trial is narrowly focused on contractual promises, not existential risks. Yet, the underlying tension reflects a growing public and legal debate over who controls the future of artificial intelligence.

Musk's cross-examination also touched on his other ventures—Tesla, SpaceX, and Neuralink—but no direct link to the case was established. Legal experts say the trial's real stakes lie in whether founders can hold former partners to idealistic pledges in a high-stakes industry.

Jump to background on OpenAI's founding | Read what this means for AI governance