Musk v. Altman week 2: OpenAI fires back, and Shivon Zilis reveals that Musk tried to poach Sam Altman

2026-05-08 · Source: MIT Technology Review · Field: Technology & Digital — Artificial Intelligence & Machine Learning, Corporate Strategy & Leadership, Corporate Law & Business Legal Services · Depth: Fundamental Awareness, medium

Summary

The second week of the landmark trial between Elon Musk and OpenAI focused on Musk's motivations for suing, with OpenAI alleging he seeks to undermine a competitor. Musk, a cofounder who left in 2018, claims OpenAI CEO Sam Altman and President Greg Brockman deceived him into donating $38 million by promising a nonprofit dedicated to AI for humanity, only to later accept billions from Microsoft and restructure into a for-profit subsidiary. Brockman countered, testifying that Musk pushed for a for-profit arm and sought "absolute control" over it, even attempting to poach Altman for a Tesla AI lab. Shivon Zilis, a former OpenAI board member and mother of four of Musk's children, corroborated Musk's recruitment efforts. Musk is seeking to remove Altman and Brockman, unwind OpenAI's restructuring, and claim $134 billion in damages from OpenAI and Microsoft, potentially impacting OpenAI's path to a $1 trillion IPO and xAI's planned $1.75 trillion IPO.

Key takeaway

For investors tracking the AI landscape, the Musk v. Altman trial highlights significant governance risks and the intense competition for AI leadership. The outcome could drastically alter OpenAI's valuation and IPO prospects, while also influencing the trajectory of Musk's xAI. You should monitor the advisory verdict and judge's decision closely, as it may signal shifts in corporate control and the future direction of major AI entities.

Key insights

The Musk v. OpenAI trial reveals a deep conflict over control, profit, and the foundational mission of AI development.

Principles

• Founding intentions can diverge significantly over time.
• Control over AGI development is a critical point of contention.

In practice

• Document all agreements and intentions clearly.
• Address potential conflicts of interest proactively.

Topics

• Elon Musk
• OpenAI
• Sam Altman
• Greg Brockman
• AI Litigation

Best for: CTO, VP of Engineering/Data, Director of AI/ML, Tech Journalist, Legal Professional, Investor

Related on AIssential

• Roundtables: Inside the Musk v. Altman Trial — The Musk v. Altman trial, dismissed on procedural grounds, exposed significant internal governance and leadership credibility issues at OpenAI.
• Join Our Livestream: Musk v. Altman and the Future of OpenAI — The *Musk v. Altman* trial will assess OpenAI's adherence to its AGI mission, potentially reshaping AI development.
• Musk v Altman: tech bros at war over OpenAI – The Latest — A protracted legal dispute between tech billionaires Elon Musk and Sam Altman regarding OpenAI has concluded with a victory for Altman, the current head of OpenAI.
• What we learned from the cringey courtroom drama between Elon Musk and Sam Altman — The Musk v. OpenAI trial exposed the bitter feud and conflicting narratives surrounding OpenAI's founding and transition to a for-profit model.
• Sam Altman testifies in landmark OpenAI trial, says Musk wanted control of company — OpenAI's legal battle reveals deep conflicts over its mission, leadership, and financial structure.
• Opinion | What Would Jefferson and Madison Make of Musk and Altman? — Founder disputes over corporate structure and mission can lead to high-stakes legal battles in the AI sector.

Open in AIssential →

Editorial summary, takeaway, and curation by AIssential. Original article published by MIT Technology Review.