Musk Calls Himself "a Fool" on the Stand, and Friendlier AI Tells You What You Want to Hear

Elon Musk testified for a second day on Wednesday in his lawsuit against OpenAI and CEO Sam Altman, telling a federal jury in Oakland that he was "a fool" for putting money into the AI company. Musk is seeking $150 billion in damages and wants OpenAI to revert to its original nonprofit structure. His core claim: Altman executed a "bait-and-switch," soliciting donations under a nonprofit mission and then enriching himself and other insiders by creating a for-profit subsidiary. (Reuters | NPR | CNN)

OpenAI's defense is straightforward: Musk is not a wronged benefactor but a former board member who tried to take control of the company, failed, and is now using litigation to damage a competitor to his own AI venture, xAI. Cross-examination on Wednesday was combative, with Musk accusing OpenAI's lawyer of repeatedly trying to "trick" him. The judge scolded Musk for social media posts about the trial and threatened a gag order. (Washington Post | BBC | NBC News)

The trial matters beyond the personalities. If a jury decides that OpenAI's nonprofit-to-for-profit conversion violated its founding commitments, it sets a precedent for every AI lab that started with a public-benefit mission and pivoted to commercial structures. The agent ecosystem sits downstream of these corporate decisions: who controls the most capable models, how they are licensed, and whether safety commitments survive commercialization pressure are all questions this courtroom may help answer.