OpenAI and Elon Musk are engaged in an increasingly public legal battle as they prepare for a high-stakes jury trial scheduled for April 2026. The dispute centers on allegations that OpenAI misled Musk by abandoning its original nonprofit mission, with both parties now fighting their case in the court of public opinion as well as in federal court.
Musk, who helped cofound OpenAI in 2015, is suing the company’s key leaders including CEO Sam Altman and President Greg Brockman, claiming he was deceived when the organization shifted away from its core nonprofit mission. According to Musk’s lawsuit, he donated $38 million to OpenAI when it operated as a nonprofit, believing the company would remain committed to that structure. However, OpenAI completed its transition to a for-profit public benefit corporation in October 2025, fundamentally changing its organizational structure.
The legal battle intensified after more than 100 documents were unsealed last Tuesday, including personal diary entries from Greg Brockman obtained during the discovery process. These entries have become central to the case, with US District Judge Yvonne Gonzalez Rogers citing them in her recent ruling that determined Musk had sufficient evidence of being misled to proceed to trial.
On Friday, OpenAI fired back with a blog post titled “The truth Elon left out,” which provided commentary alongside excerpts from court documents. The post makes explosive allegations that Musk wanted “full control” of OpenAI and was motivated by past experiences where he lacked control. Perhaps most controversially, OpenAI claims that during succession planning discussions, Musk suggested having his children control AGI (artificial general intelligence), a revelation that allegedly surprised OpenAI’s leadership.
Musk has been leveraging his social media platform X to attack OpenAI using the recently unsealed court documents, turning the legal dispute into a very public war of words. One particularly damaging diary entry from Brockman appears to show internal doubts about the nonprofit commitment: “Cannot say that we are committed to the non-profit. Don’t want to say that we’re committed. If three months later we’re doing b-corp then it was a lie.”
This entry has proven crucial to Musk’s case, providing evidence that OpenAI’s leadership may have been contemplating a for-profit transition even while assuring Musk of their nonprofit commitment. The case strikes at fundamental questions about AI governance, corporate structure, and the future of AGI development.
Key Quotes
Cannot say that we are committed to the non-profit. Don’t want to say that we’re committed. If three months later we’re doing b-corp then it was a lie.
This diary entry from OpenAI President Greg Brockman, obtained during discovery, has become central evidence in Musk’s case. US District Judge Yvonne Gonzalez Rogers cited these entries when ruling that Musk had sufficient evidence to proceed to trial, suggesting internal doubts about OpenAI’s nonprofit commitment even while assuring stakeholders.
The truth Elon left out.
This is the title of OpenAI’s Friday blog post responding to Musk’s attacks on social media. The post represents OpenAI’s attempt to control the narrative by providing their version of events alongside court document excerpts, alleging Musk wanted full control of the company and made surprising suggestions about his children controlling AGI.
Our Take
This increasingly bitter dispute reveals the high stakes involved in controlling the future of AI development. What’s particularly striking is how both parties are fighting not just in court but for public opinion—a recognition that legitimacy and reputation matter enormously in the AI industry. The allegations about Musk wanting his children to control AGI, if true, are genuinely concerning and raise questions about his motivations. However, Brockman’s diary entries suggesting OpenAI was contemplating abandoning its nonprofit status while publicly committed to it are equally troubling. The reality is likely that both parties have legitimate grievances, but the deeper issue is whether any private entity—nonprofit or for-profit—should have such concentrated control over potentially transformative AI technology. This case may ultimately accelerate calls for greater regulatory oversight of advanced AI development.
Why This Matters
This legal battle represents far more than a dispute between billionaires—it touches on fundamental questions about how transformative AI technology should be governed and controlled. OpenAI has become one of the most influential AI companies globally, with its ChatGPT product reshaping entire industries. The outcome of this case could set important precedents for AI startup governance and nonprofit-to-profit transitions.
The allegations about Musk wanting control over AGI development, including suggestions about his children controlling it, raise critical questions about AI safety, accountability, and who should have power over potentially world-changing technology. As AI capabilities advance toward AGI, these governance questions become increasingly urgent.
For the broader AI industry, this case highlights the tensions between open, nonprofit AI development versus commercial imperatives. Many AI researchers and ethicists have expressed concerns about the concentration of AI power in for-profit entities driven by shareholder returns rather than public benefit. The trial could reveal important details about how major AI companies make strategic decisions and whether early commitments to openness and safety can be maintained as commercial pressures mount.
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Source: https://www.businessinsider.com/openai-responds-elon-musk-lawsuit-greg-brockman-diary-entries-2026-1