Why is Elon Musk taking OpenAI CEO Sam Altman to Court?

Elon Musk and Sam Altman’s legal battle is painting a messy picture of the long-standing rivalry between two of the most powerful leaders in AI. 

The legal front began back in 2024 when the Tesla and xAI CEO claimed OpenAI and its leaders had breached the company’s original non-profit mission, but the relationship between the tech tycoons had soured much earlier. 

Elon – who co-founded OpenAI along with Sam Altman, Greg Brockman and others – had also invested about US$38m in the startup, which he says was obtained under the notion that the company would function as a non-profit entity. 

OpenAI is set to go public later this year, with a valuation of US$1tn, after it restructured into a Public Benefit Corporation back in October 2025 – which forms the crux of the legal dispute. 

The AI trailblazer’s original founding mission from 2015 reads: “OpenAI is a non-profit artificial intelligence research company. Our goal is to advance digital intelligence in the way that is most likely to benefit humanity as a whole, unconstrained by a need to generate financial return.” 

Elon is suing for more than US$134bn in damages, the removal of Sam and Greg from leadership roles and is seeking to reverse the company’s restructuring to for-profit. He says court proceeds would be redistributed to OpenAI's non-profit. 

OpenAI and Elon Musk: The early days

Back in 2015, Elon and Sam were well-aligned on OpenAI's mission: developing safe AI and keeping it out of the hands of “bad guys”. 

When asked by Vanity Fair in December 2025 why OpenAI was not trying to make profit, Sam replied: “I think that the misaligned incentives there would be suboptimal to the world as a whole. 

“I have plenty of other things to make money. I have Elon as sort of the other counter. It’s fine to do this one to help out.”

In early 2017, OpenAI realised it would need “billions of dollars for the compute to build AGI" and, according to the company, Elon was on board with this venture. 

“We and Elon agreed that a for-profit was the next step for OpenAI to advance the mission,” OpenAI says. 

The rift: Altruism vs greed?

In 2017, following an intense boardroom struggle, where according to OpenAI “Elon demanded majority equity, absolute control and to be CEO of the for-profit,” Elon resigned as co-chair in early 2018. 

Since then, the two have continued to trade blows. OpenAI compiled a page dedicated to this commentary titled The truth about Elon Musk and OpenAI, posting: "Motivated by jealousy, regret for walking away from OpenAI and a desire to derail a competing AI company, Elon has spent years harassing OpenAI through baseless lawsuits and public attacks.

Elon's case against OpenAI opens as follows: “Elon Musk’s case against Sam Altman and OpenAI is a textbook tale of altruism versus greed.”

He has accused the company of deception and manipulation, saying the humanitarian angle was "all hot-air philanthropy – the hook for Altman’s long con". 

The opening goes on to say: "The perfidy and deceit are of Shakespearean proportions."

After the suit was filed, OpenAI released communication between the two in an effort to prove Elon knew about the restructuring plans. 

With Elon having founded xAI, OpenAI says the lawsuit is a ploy to undercut competition. 

Depositions and accusations

The lawsuit may have drawn headlines, but the unsealed depositions were just as explosive. During questioning, Musk was pressed about alleged drug use at Burning Man in 2017.

Although the judge ruled that ketamine use could not be raised at trial, questions related to his time at the festival were permitted.

Other major depositions included Shivon Zilis, the mother of Musk’s four children who also served on the board of OpenAI from 2020 to 2023, and Greg Brockman, whose journal entries appear to muse about financially enriching himself. 

“I have great respect for Elon, but the way he cherry-picked from my personal journal is beyond dishonest,” Greg wrote in an X post. 

With Elon, Sam and other Silicon Valley elites including Microsoft CEO Satya Nadella set to testify, the case is already drawing major media attention. 

“Can’t wait to start the trial,” Musk wrote on X back in January. “The discovery and testimony will blow your mind.”