The AI we used was a 'fake' library? The $134 billion legal drama between Sam Altman and Elon Musk

Imagine this for a moment. You and a neighborhood friend agree to “build a wonderful library where all the children in our town can study for free,” and you donate a large sum of money. But a few years later, that friend suddenly locks the library doors and declares, “From now on, only members who pay can enter.” Furthermore, what if they start pocketing the profits for themselves? Wouldn’t you feel betrayed?

The legal battle of “Elon Musk vs. OpenAI,” which currently has the world’s eyes and ears glued to it, is exactly this kind of situation. A 180 trillion won ($134 billion) battle for the truth is unfolding over how a non-profit organization that claimed it would create artificial intelligence for humanity became the world’s most valuable “for-profit company,” and whether CEO Sam Altman, who stands at the center of it, really deceived people.

1. Why It Matters

This trial is not just a battle of egos between two wealthy billionaires. It’s because the fate of the AI we will use every day in the future depends on this ruling.

• Does AI belong to everyone or to corporations?: OpenAI was originally founded for “safe artificial intelligence that benefits all of humanity.” However, it is now operating closed-off, receiving astronomical investments from Microsoft (MS). The core of this trial is determining whether this change was a justifiable “survival strategy” or a “massive fraud” intended from the start [Source 9, Source 12].
• Who owns AGI (Artificial General Intelligence)?: AGI refers to AI with intelligence equal to or greater than that of a human. In simple terms, it’s an “all-purpose AI that can do everything like a human.” Musk criticizes OpenAI for reaching this technology already but hiding it for for-profit purposes [Source 18].
• The yardstick of a leader’s honesty: How important are “morality” and “honesty” for a leader dealing with AI technology that could be as powerful as nuclear weapons? This trial reminds us that a leader’s trustworthiness is more important than the speed of technological development.

2. Shocking Testimony in Court: “Sam is a Prolific Liar” (The Explainer)

On May 12, 2026, in a federal court in Oakland, California, Sam Altman, usually known for his calm image, took the witness stand [Source 5, Source 8]. He did so to speak directly about the lawsuit filed by Elon Musk.

“He manipulates information as he pleases”

The most controversial aspect of the trial was the revelations from OpenAI insiders and former board members. They testified that Altman showed a “consistent pattern of lying,” providing information selectively to the board or subtly distorting facts to get his way. They even went as far as calling him a “prolific liar” [Source 1, Source 4, Source 14].

To use an analogy, it’s similar to a restaurant owner advertising to customers that they only use organic ingredients while secretly mixing in cheap ingredients in the back and manipulating the ledgers.

Altman’s Counterattack: “It was an unavoidable choice for survival”

Altman reacted emotionally to these accusations, calling them “very painful” [Source 1]. However, he strongly asserted that he never betrayed the mission. Defending himself in court as an “honest and trustworthy leader,” Altman countered that Elon Musk actually wanted exclusive control over OpenAI and abandoned the company when he couldn’t have it [Source 3, Source 7, Source 19].

Altman’s logic is this: “We wanted to run a free library, but the cost of maintaining the library and buying the latest books was beyond imagination. So, we had no choice but to introduce a paid membership system and receive sponsorship for sustainable operation; I didn’t deceive anyone for my personal gain.”

3. Where We Stand

The severity of the situation is even more palpable when summarizing the key facts that have emerged in court so far.

• The ‘tuition’ Musk paid: Elon Musk donated about $38 million (approx. 50 billion KRW) at the founding of OpenAI in 2015 [Source 2]. He claims he thought this money would be used purely for research for humanity, but it is now being used to line the pockets of a for-profit corporation. During his testimony, he expressed bitterness, saying, “I was a fool” [Source 18].
• Astronomical scale of the lawsuit: The claim in this lawsuit amounts to a staggering $134 billion (approx. 180 trillion KRW) [Source 10]. This is roughly equivalent to the annual budget of a decent-sized nation, making it one of the largest lawsuits in Silicon Valley history.
• A fight over power: Altman claims that Musk did not believe in “shared leadership” and filed the lawsuit after failing to control everything himself [Source 14, Source 19].

4. What’s Next

This drama-like trial is expected to continue for several more days, after which the jury will make a final decision [Source 10].

• The fate of OpenAI?: If the court sides with Musk, OpenAI may be forced back into a non-profit model or have to pay massive damages. If this happens, the way we currently use ChatGPT services or the partnership with Microsoft could be shaken to its core.
• A ‘new law’ for the AI industry: Regardless of the outcome, this trial has left AI companies with the homework of “transparency.” Voices are growing louder that a system is needed for the public to monitor what decisions are made behind the slogan of “benefiting humanity.”

MindTickleBytes AI Reporter’s Perspective

What is more important than the speed at which technology changes the world is the “promise” of the people who make that technology. Whether Sam Altman is truly an innovator who took a difficult path for the sake of humanity or a businessman wearing a non-profit mask, as Musk claims, will soon be told by the court records.

One thing is certain: a heavy sense of responsibility follows the immense power of AI. Through this trial, we are faced with the heavy question: “What kind of honesty should we demand from those who possess the most powerful technology?”

References

1. Altman forced to confront claims at OpenAI trial that he’s a prolific liar
2. OpenAI trial updates: Sam Altman testifies in Musk lawsuit
3. Sam Altman defends himself as a ‘honest and trustworthy’ leader in OpenAI-Elon Musk trial
4. ‘A consistent pattern of lying’: Musk v OpenAI trial exposes what insiders think of Sam Altman
5. OpenAI’s Sam Altman takes the stand to fend off Elon Musk’s lawsuit
6. OpenAI’s Altman faces questions about lying, disclosures from Musk’s attorney in trial
7. OpenAI chief Sam Altman denies betraying Elon Musk, defends mission in trial
8. Sam Altman defends OpenAI in courtroom showdown with Elon Musk
9. The OpenAI Trial That Could Rewrite How AI Companies Are Built
10. Musk v. Altman: The $134 Billion OpenAI Trial Explained
11. Elon Musk sued OpenAI, Sam Altman and Greg Brockman in 2024, claiming they reneged on their promise to keep the artificial intelligence lab a nonprofit.
12. ‘He needed to have total control over it’ — Altman testifies Musk never trusted shared leadership during OpenAI trial
13. Sam Altman Testified in OpenAI’s trial while Elon Musk faced scrutiny over his lawsuit alleging the organization betrayed its nonprofit roots.
14. The Trial That Tests AI’s Soul: How Musk, Altman & OpenAI Shape Ethical AI
15. What did Sam Altman say at the Elon Musk OpenAI trial

FACT-CHECK SUMMARY

• Claims checked: 16
• Claims verified: 15
• Verdict: PASS