Musk Attempted Settlement with OpenAI Prior to Oakland Trial, Filing Reveals

• Musk is suing OpenAI and Microsoft for $150 billion, alleging the company's for-profit conversion betrayed its original nonprofit mission to develop safe AI for public good
• During trial testimony, Musk admitted he did not read the fine print of a 2017 term sheet related to OpenAI's structural shift, only its headline
• The trial before U.S. District Judge Yvonne Gonzalez Rogers is expected to last several weeks with a verdict possible by mid-May; Sam Altman, Greg Brockman, and Microsoft CEO Satya Nadella are scheduled to testify later this month

Summary: Musk-OpenAI Settlement Attempt Before Oakland Trial

Key Development: Elon Musk attempted to settle his lawsuit against OpenAI just two days before trial commenced in Oakland federal court on April 28, 2026, according to a new court filing submitted Sunday, May 4.

Settlement Details: Musk contacted OpenAI President Greg Brockman to explore settlement options. When Brockman proposed both parties drop their claims, Musk allegedly threatened: "By the end of this week, you and Sam will be the most hated men in America. If you insist, so it will be."

Lawsuit Background: The SpaceX founder is suing OpenAI for allegedly betraying its original nonprofit mission to develop safe AI for public benefit by converting to a for-profit structure. Musk claims company leaders wrongfully profited from his charitable contributions and admits he didn't read the fine print of a 2017 term sheet related to the nonprofit-to-profit transition.

Financial Stakes: Musk seeks $150 billion in damages from OpenAI and Microsoft, one of OpenAI's largest investors, plus changes to OpenAI's leadership structure.

Trial Timeline: The case is being heard by U.S. District Judge Yvonne Gonzalez Rogers and is expected to last several weeks, with a verdict possible by mid-May. Key witnesses scheduled to testify later this month include OpenAI CEO Sam Altman, President Greg Brockman, and Microsoft CEO Satya Nadella.

Market Implications: The high-stakes legal battle between major AI industry players could impact corporate governance in the AI sector and set precedents for nonprofit-to-profit conversions. The outcome may affect Microsoft's significant investment in OpenAI and broader AI development strategies.