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Musk Takes Stand: AI Pioneer Battles OpenAI Over Funding and Ethics

In his testimony against OpenAI, Elon Musk reveals deep regrets over funding the company's growth while warning of existential risks posed by advanced AI.

02-05-2026 |


In his testimony against OpenAI, Elon Musk reveals deep regrets over funding the company's growth while warning of existential risks posed by advanced AI.

Elon Musk took the stand in his landmark legal battle against OpenAI this week, clad in a crisp black suit and tie. The tech mogul argued that both CEO Sam Altman and president Greg Brockman had deceived him into funding their company's growth over the years. During his testimony, he warned of the existential risks posed by advanced AI technologies while also admitting to using some of these same models for training at xAI.

Musk’s Regrets

“I was a fool who provided them free funding,” Musk told the jury in federal court. He explained that when he co-founded OpenAI back in 2015, his intention had been to support a nonprofit dedicated to developing AI for humanity's benefit rather than creating wealthy executives. “Instead of donating $38 million towards this noble cause," said Musk, "I inadvertently helped build what could become an $800 billion company.”

The Trial’s Impact on OpenAI and xAI

At stake in the courtroom drama is not just personal grievances but also billions of dollars. If successful, Musk's lawsuit aims to remove Altman and Brockman from their leadership positions at OpenAI while reversing a restructuring that allowed it to operate as both nonprofit and for-profit entities simultaneously. This could significantly impact plans for an IPO valued near $1 trillion.

Meanwhile, xAI—Musk’s own AI company which makes the chatbot Grok—is set to go public alongside SpaceX in June at a substantial valuation. The outcome of this trial will likely influence how both companies navigate their future paths within the rapidly evolving landscape of artificial intelligence technology.

The Broader Implications

Outside the courtroom, protesters lined streets carrying signs urging people to quit using ChatGPT and boycott Tesla products altogether. Inside, Musk maintained a calm demeanor throughout his testimony despite occasional gasps from observers when he admitted xAI's reliance on OpenAI’s models for training purposes.

This case highlights broader ethical questions surrounding AI development: who should control such powerful technologies? How do we balance innovation with responsibility towards society at large?


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