Elon Musk testified in Oakland that he was a fool for pouring $38mn into what he thought would stay a non‑profit. The billionaire said the money helped birth a for‑profit version of OpenAI, now a tech juggernaut. After resigning from its board in 2018, OpenAI secured a $1bn Microsoft deal that capped its profit today in 2024.

During the trial, Musk cited 2017 emails showing Altman and Greg Brockman pushing a for‑profit model that would keep Musk holding slightly over half of the company. He later warned that the organization could not enjoy the ‘halo effect’ of charity while enriching its founders. The court saw texts that revealed Musk’s shock at a $20bn valuation in 2022.

Microsoft’s $1bn investment came after Musk left the board, and the partnership now faces scrutiny over a clause that would dissolve the for‑profit arm if true artificial general intelligence were achieved. Musk argues OpenAI’s shift to profit has made it a competitor to the tech giant, raising questions about control over future AI breakthroughs. The case underscores the tension between innovation and corporate governance.