- Apr 30, 2026
Staff Reporter
Tech entrepreneur Elon Musk has once again drawn attention after appearing in a federal court in California in a case regarding the structure of OpenAI. During the hearing, he claimed that the co-founders diverted a non-profit initiative into a different direction. At the same time, he also admitted inconsistencies in some of his earlier statements.
Musk told the court that his company Tesla is currently not working on artificial general intelligence (AGI). However, just a few weeks earlier, he had made a different claim on social media. His statement in court has raised new questions in the tech community.
In his lawsuit, Musk has alleged that OpenAI co-founders initially promised to operate as a non-profit organization but later shifted to a for-profit structure, prioritizing commercial interests. According to Musk, this has led to a deviation from the original mission.
On the other hand, OpenAI’s lawyers argued during cross-examination that structural changes were necessary for funding and competition. They also said Musk himself was previously involved in proposals to convert the organization into a for-profit entity.
The hearing also revealed that Musk once considered creating a for-profit arm for OpenAI and maintaining control over it. After that plan did not materialize, he reportedly stopped regular funding.
Another key issue in court was AI safety. Musk argued that a for-profit structure could weaken safety concerns. However, during cross-examination, he admitted that all AI companies face similar risks.
The case is still ongoing. Several important witnesses are expected to testify in the next hearings. Analysts believe this high-profile lawsuit could significantly influence the future structure and policy direction of the AI industry.