Musk Sues OpenAI for $150B Over Betrayal of Nonprofit Mission

Elon Musk has escalated his legal battle against OpenAI and its CEO Sam Altman, filing a lawsuit in San Francisco federal court on April 26, 2026, that accuses them of betraying the nonprofit mission of the artificial intelligence company he helped fund. Musk, who donated $44 million to OpenAI when it was founded in 2015, is seeking approximately $150 billion in damages, claiming the company was looted by Altman and co-founder Greg Brockman as they shifted from an open-source nonprofit to a for-profit enterprise. The lawsuit, a 120-page complaint alleging breach of contract and fraud, demands OpenAI be returned to its charitable roots and its corporate restructuring be blocked. Musk took to his social media platform X to call Altman a "scam artist" and Brockman "Greg Stockman," accusing them of securing "tens of billions" in stock deals for themselves. OpenAI, now valued at over $157 billion following billions in Microsoft investments, has dismissed Musk's claims as "incoherent" and "frivolous." Altman responded on X that the company has been transparent about its operations and noted that Musk quit the board in 2018 over disagreements before launching his own rival AI company, xAI. OpenAI has pushed back hard, arguing the lawsuit is a distraction driven by competitive jealousy rather than legitimate legal grievance. Legal experts suggest Musk faces significant hurdles proving the "looting" allegations, though the case has brought renewed attention to debates about AI governance and the responsibilities of organizations founded as charities. The current lawsuit marks the revival of a legal battle that began in March 2024, when Musk first sued Altman and OpenAI for breaching founding agreements. He dropped that case in June 2024 without explanation before refiling in early 2026. The trial, which began with the appointment of a nine-person jury, is expected to be one of the most closely watched legal battles in Silicon Valley history. A hearing is scheduled for May 15, 2026. The dispute traces to 2018 board tensions that arose after OpenAI's explosive growth following the launch of ChatGPT, which prompted Musk to leave the board amid disagreements over the company's direction.