Elon Musk Asks for OpenAI’s Nonprofit to Get Any Damages From His Lawsuit

Published
Score
7

Why it matters

Core event: Elon Musk amended his ongoing lawsuit against OpenAI on April 7, 2026, requesting that OpenAI's nonprofit arm receive zero damages and seeking the removal of Sam Altman from its board, amid claims of breach of nonprofit principles during OpenAI's for-profit shift.[1][2][5][7]

Key players: Elon Musk (plaintiff, OpenAI co-founder, xAI CEO); Sam Altman (OpenAI CEO, nonprofit board member); Greg Brockman (OpenAI President); OpenAI (defendant, hybrid nonprofit/for-profit); Microsoft (co-defendant, major investor); regulators including California AG Rob Bonta and Delaware AG Kathy Jennings.[1][2][3][7]

Background and timeline: OpenAI, co-founded in 2015 by Musk, Altman, and others as a nonprofit to counter Google's AI dominance, received Musk's $38M (60% of seed funding); Musk left in 2018 over Tesla conflicts. OpenAI created a for-profit arm in 2019, partnered with Microsoft, faced board drama (Altman briefly fired 2023), and restructured into a public benefit corporation in October 2025 under nonprofit control. Musk sued in 2024 alleging fraud and mission abandonment, seeking $100-135B damages (all pledged to safe AGI charity); partial claims dismissed, full jury trial set for April 27, 2026, in Oakland, CA. OpenAI reversed full for-profit plans in May 2025 after regulator input and advocacy.[1][2][3][4][5]

Newsworthy now: Amendment escalates high-stakes trial just weeks away (April 27), intensifying feud over AI's nonprofit roots amid OpenAI's $300-500B valuation, Musk's xAI rivalry, and regulatory scrutiny—potentially reshaping governance, damages, and AGI ethics.[1][3][5][7]

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