OpenAI Urges State Probes as Elon Musk Sues for $150 Billion

Ongoing legal warfare between Elon Musk and OpenAI escalated in April 2026 as both parties sought government intervention. Musk amended a 2024 lawsuit against OpenAI and Microsoft, demanding between $134 billion and $150 billion in damages. He seeks the removal of CEO Sam Altman and President Greg Brockman, arguing that the company defrauded early donors to transition from a nonprofit mission into a for-profit enterprise. Musk specified that any awarded damages should be directed to OpenAI's nonprofit arm rather than himself personally.

In response, OpenAI requested that the attorneys general of California and Delaware investigate Musk and Meta CEO Mark Zuckerberg for anti-competitive behavior. In a letter authored by Chief Strategy Officer Jason Kwon, OpenAI alleged that Musk and Zuckerberg colluded to conduct surveillance and gather opposition research on Sam Altman to undermine the company's development of artificial general intelligence. OpenAI characterized Musk's litigation as a baseless harassment campaign driven by ego and a desire to stall a competitor.

The dispute centers on whether OpenAI abandoned its founding charter to benefit executives and investors. While Musk claims the leadership used charitable status to secure tax exemptions while planning a commercial conversion, OpenAI maintains that Musk is attempting to seize control of AGI for competitors who lack safety principles. Jury selection for the lawsuit in the Northern District of California is scheduled to begin April 27, with the trial taking place in Oakland.