Musk testifies OpenAI case will set precedent for “looting every charity in America,” renounces personal benefit from $134B claim


TL;DR

Musk testified Tuesday that his OpenAI lawsuit will set legal precedent for all American charitable giving. “If we make it okay to loot a charity, the entire foundation of charitable giving in America will be destroyed,” he told the jury. He has renounced personal financial benefit, seeking instead up to $134B returned to OpenAI’s nonprofit, Altman’s removal, and forced reversion to nonprofit status. OpenAI counters that Musk supported for-profit restructuring with himself in charge, quit, and now sues to damage a competitor.

Elon Musk told a federal jury on Tuesday that his lawsuit against OpenAI and its co-founders is not about him. “It is not okay to steal a charity, that’s my view,” Musk said from the witness stand in Oakland, California, in his first testimony under oath in the case he filed in 2024. “If we make it okay to loot a charity, the entire foundation of charitable giving in America will be destroyed. That’s my concern.” Musk said that if Altman and Brockman “get away with what they did, this case will become case law and become precedent to looting every charity in America.” The framing was deliberate. Musk’s legal strategy depends on making nine jurors believe that a fight between three billionaires over the control of the world’s most valuable artificial intelligence company is actually a fight about whether American charitable institutions can trust that their missions will be honoured. “Fundamentally, I think they’re going to try to make this lawsuit very complicated,” Musk told the jury, “but it’s actually very simple.” That is not true. Nothing about this case is simple. But the question of whether the jury accepts Musk’s simplicity or OpenAI’s complexity will determine whether the most valuable startup in history is forced to unwind the for-profit conversion that made it worth $852 billion.

The testimony

Musk took the stand as the trial’s first witness, immediately after a 20-minute recess following opening statements. His lawyer Steven Molo had already told the jury that “without Elon Musk, there would be no OpenAI, pure and simple” and that OpenAI’s leadership “enriched themselves, made themselves more powerful, and breached the very basic principles on which the charity was founded.” Molo used a museum analogy: a nonprofit can open a gift shop, but “the museum store can’t loot the museum and sell the Picassos.” On the stand, Musk’s task was narrower. He needed to establish himself not as a competitor with a grievance but as a donor who was deceived. His lawsuit claims he was “assiduously manipulated” and “deceived” by promises to “chart a safer, more open course than profit-driven tech giants.” The roughly $44 million he donated to OpenAI, according to Musk’s legal theory, formed a charitable trust that required the organisation to remain a nonprofit. The for-profit conversion completed in October 2025 violated that trust.

Musk has renounced any personal financial benefit from the case. Any damages awarded, up to $134 billion in wrongful gains, would flow to OpenAI’s nonprofit foundation rather than to Musk personally. He is also seeking the removal of Altman from the board and from his role as chief executive, the removal of Brockman as president, and a court order unwinding the for-profit restructuring. The renunciation of personal benefit is legally strategic: it neutralises OpenAI’s argument that the lawsuit is motivated by competitive jealousy and positions Musk as acting in the public interest rather than his own. Whether the jury accepts that positioning given the credibility questions that have surrounded Musk throughout this litigation, including the timing of his lawsuit relative to the founding of his own AI company xAI, is the central question of the trial’s liability phase.

The defence

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Before Musk testified, William Savitt delivered OpenAI’s opening statement. His argument was blunt: “We are here because Mr. Musk didn’t get his way at OpenAI. He quit, saying they would fail for sure. But my clients had the nerve to go on and succeed without him.” Savitt told the jury that in OpenAI’s early years, Musk expressed support for a for-profit structure, with himself in charge. He said Musk used his funding promises to bully founding members and attempted to merge OpenAI with Tesla in 2017. “The other founders refused to turn the keys of artificial intelligence over to one person,” Savitt said. “One person having control wasn’t consistent with OpenAI’s mission.” Savitt showed the jury an email from former board member Shivon Zilis describing two for-profit restructuring options that were presented to Musk. “He supported a for-profit, so long as he was in control,” Savitt argued. He claimed Musk “never expressed the view that OpenAI had to remain purely nonprofit, or even that he thought it should be.”

The two narratives are structurally incompatible. Musk’s narrative requires the jury to believe he donated $44 million to a nonprofit AI safety project and was betrayed when its leaders converted it into a profit machine without his consent. OpenAI’s narrative requires the jury to believe Musk always wanted a for-profit, tried to take personal control, failed, quit, and now uses the legal system to damage a competitor to his own AI company. The Zilis email is the pivotal piece of evidence. If it shows Musk supporting for-profit restructuring, it undermines his charitable trust claim. If it shows Musk insisting on personal control as a condition, it supports OpenAI’s narrative but also shows that restructuring was being discussed with Musk’s participation, which complicates the “stolen” framing. Musk’s legal team will argue that discussing options is not the same as consenting to the specific conversion that occurred. OpenAI’s team will argue that participation in restructuring discussions is inconsistent with a belief that the nonprofit structure was inviolable.

The stakes

The trial’s outcome has immediate commercial consequences. OpenAI is approaching a trillion-dollar valuation and planning what would be one of the largest initial public offerings in history. A ruling that the for-profit conversion was unlawful could force the company to unwind the October restructuring, return assets to the nonprofit, and potentially delay or derail the IPO. Musk’s filing states: “Never before has a corporation gone from tax-exempt charity to a $157 billion for-profit, market-paralyzing gorgon, and in just eight years. Never before has it happened, because doing so violates almost every principle of law governing economic activity.” The trial is expected to last three weeks. Musk and Altman are each scheduled for more than two hours of testimony. Microsoft CEO Satya Nadella will testify for approximately one hour. Ilya Sutskever, OpenAI’s co-founder who briefly ousted Altman in November 2023, will appear for 30 minutes. Mira Murati, the former chief technology officer, will appear via videotaped deposition.

The advisory jury will deliver a verdict on liability that Judge Yvonne Gonzalez Rogers has said she will “likely” follow. If liability is established, a remedies phase beginning around May 18 will determine whether the court orders financial restitution, executive removal, structural reversion, or some combination. The judge, sitting in equity, has sole authority over structural remedies. The jury can only advise on monetary damages. This structure matters because Musk’s most consequential request, the forced reversion to nonprofit status, is entirely in the judge’s hands regardless of what the jury decides. OpenAI’s $110 billion funding round in February, which valued the company at $852 billion and included $50 billion from Amazon, was predicated on the for-profit structure remaining intact. A court order unwinding that structure would not merely embarrass OpenAI. It would call into question the legal basis of every investment made since the conversion, including commitments from Amazon, Microsoft, SoftBank, and Nvidia that collectively exceed $200 billion. Musk told the jury the case is simple. The consequences are anything but.



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Recent Reviews



Researchers at the University of Washington have developed a new prototype system that could change how people interact with artificial intelligence in daily life. Called VueBuds, the system integrates tiny cameras into standard wireless earbuds, allowing users to ask an AI model questions about the world around them in near real time.

The concept is simple but powerful. A user can look at an object, such as a food package in a foreign language, and ask the AI to translate it. Within about a second, the system responds with an answer through the earbuds, creating a seamless, hands-free interaction.

A Different Approach To AI Wearables

Unlike smart glasses, which have struggled with adoption due to privacy concerns and design limitations, VueBuds takes a more subtle approach. The system uses low-resolution, black-and-white cameras embedded in earbuds to capture still images rather than continuous video.

These images are transmitted via Bluetooth to a connected device, where a small AI model processes them locally. This on-device processing ensures that data does not need to be sent to the cloud, addressing one of the biggest concerns around wearable cameras.

To further enhance privacy, the earbuds include a visible indicator light when recording and allow users to delete captured images instantly.

Engineering Around Power And Performance Limits

One of the biggest challenges the research team faced was power consumption. Cameras require significantly more energy than microphones, making it impractical to use high-resolution sensors like those found in smart glasses.

To solve this, the team used a camera roughly the size of a grain of rice, capturing low-resolution grayscale images. This approach reduces battery usage and allows efficient Bluetooth transmission without compromising responsiveness.

Placement was another key consideration. By angling the cameras slightly outward, the system achieves a field of view between 98 and 108 degrees. While there is a small blind spot for objects held extremely close, researchers found this does not affect typical usage.

The system also combines images from both earbuds into a single frame, improving processing speed. This allows VueBuds to respond in about one second, compared to two seconds when handling images separately.

Performance Compared To Smart Glasses

In testing, 74 participants compared VueBuds with smart glasses such as Meta’s Ray-Ban models. Despite using lower-resolution images and local processing, VueBuds performed similarly overall.

The report showed participants preferred VueBuds for translation tasks, while smart glasses performed better at counting objects. In separate trials, VueBuds achieved accuracy rates of around 83–84% for translation and object identification, and up to 93% for identifying book titles and authors.

Why This Matters And What Comes Next

The research highlights a potential shift in how AI-powered wearables are designed. By embedding visual intelligence into a device people already use, the system avoids many of the barriers faced by smart glasses.

However, limitations remain. The current system cannot interpret color, and its capabilities are still in early stages. The team plans to explore adding color sensors and developing specialised AI models for tasks like translation and accessibility support.

The researchers will present their findings at the Association for Computing Machinery Conference on Human Factors in Computing Systems in Barcelona, offering a glimpse into a future where everyday devices quietly become intelligent assistants.



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