OpenAI · 2026-05-12 · major
Sam Altman Testifies in Musk vs OpenAI Trial — Says Musk Demanded 90% Equity, Floated Passing OpenAI to His Children
Altman took the stand in Oakland to defend OpenAI against Musk's $150B 'stole a charity' lawsuit, recounting that Musk asked for 90% of OpenAI and once said the company should pass to his children.
Altman testifies in Musk's lawsuit: Musk wanted 90% equity, mused about passing OpenAI to his kids if he died.
What is it?
Day-one direct testimony from OpenAI CEO Sam Altman in Elon Musk's federal civil trial in Oakland, where Musk is seeking around $150B in damages and alleging that Altman and Greg Brockman 'stole a charity' by converting OpenAI from a nonprofit into a for-profit AI company. The trial entered its third week with Altman as the marquee witness.
How does it work?
Musk's complaint argues he was induced to commit roughly $38B to OpenAI on the promise it would remain a nonprofit, then watched it pivot. On the stand Altman told the jury that early in OpenAI's life Musk 'threw out' a demand for 90% of the equity, said in 2017 that 'maybe OpenAI should pass to my children' if he died while controlling it, and that he himself was 'extremely uncomfortable' with the idea of Musk becoming CEO. Cross-examination by Musk's attorney Steven Molo zeroed in on whether Altman 'always tells the truth.'
Why does it matter?
The verdict could force structural changes at OpenAI — the for-profit cap structure, Microsoft equity, and the planned IPO are all downstream of how the court frames the 2019 conversion. A loss could trigger refunds, governance reset, or unwind of for-profit Class B shares; a win clears the legal cloud over OpenAI's $852B valuation and gives other labs cover for similar nonprofit-to-PBC pivots.
Who is it for?
anyone tracking AI corporate governance and OpenAI's IPO path
Try it
Trial is ongoing in Northern District of California — live updates at techcrunch.com/category/artificial-intelligence/