Free NewsletterPro Login

Musk Tried To Settle With OpenAI Two Days Before Trial. Then He Threatened Them

Published May 4, 2026
Share:
Summary:
  • A new OpenAI court filing says Elon Musk texted OpenAI president Greg Brockman about a settlement two days before trial began.
  • After Brockman suggested both sides drop their suits, Musk replied that he and CEO Sam Altman would be "the most hated men in America."
  • The judge ruled the texts inadmissible, but the filing made the exchange public as the trial heads into its second week.

The story Musk has told about his lawsuit is that it is about AI safety and a broken promise to keep OpenAI a charity.

A new filing from OpenAI's lawyers tells a different story. Two days before opening arguments, Musk wanted to settle.

What The Filing Says

OpenAI's lawyers said Sunday that on April 25, two days before the trial began, Musk texted OpenAI president and co-founder Greg Brockman to ask about a settlement.

Brockman replied with a counter offer, suggesting both sides simply drop their suits and walk away. Musk's response, according to the filing, was that by the end of the week he and Sam Altman would "be the most hated men in America."

The judge in Oakland ruled the texts could not be shown to the jury. But the filing made them public, so they are part of the story even if they never reach a juror.

Why It Matters For The Case

Musk first filed his lawsuit in 2024, asking the court to undo OpenAI's for-profit setup, force the company to share its tech with the public, cancel Microsoft's deal with OpenAI, and pay him damages plus legal fees.

His lawyers said in a January filing that he should get up to $134 billion from OpenAI and Microsoft, which is also named as a defendant.

The settlement attempt cuts hard against the public version of the case. It is harder to argue the lawsuit is about saving AI from itself when the plaintiff was willing to walk away for the right deal two days before opening arguments.

OpenAI's countersuit makes that exact point, claiming Musk is using the case to slow down a rival company that grew faster than the one he helped start.

What's At Stake For Investors

Microsoft (MSFT %) is named as a defendant alongside OpenAI, with billions of dollars in cloud and AI revenue tied to the deal Musk wants undone.

A win for Musk could force the court to break or rewrite Microsoft's licensing deal with OpenAI, which gives Microsoft access to OpenAI's tech in exchange for a share of profits.

A loss for Musk would clear a major legal cloud over the for-profit move. It would also strengthen OpenAI's path to going public, which the company has been quietly preparing for.

For Musk's own AI company, xAI, the case is also a chance to slow down a competitor while running his own race.

What To Watch

Brockman could be called to testify as soon as Monday. That puts the man on the other side of those texts in front of the jury.

Musk has already taken the stand and spent three days answering questions about how OpenAI got started and why he believes Altman and Brockman walked away from its first mission.

The trial is expected to run for several more weeks, with weeks of testimony from OpenAI executives still ahead.

The story so far is mostly about Musk. And now, his text messages.

Disclosure

Get Market Briefs delivered to your inbox every morning for free!

No fluff. No noise. No politics. Just finance news you can read in 5 minutes.

Blogs

May 30, 2026
Financial Literacy Books That Actually Build Wealth
  • The best financial literacy books don't just teach budgeting, they shift how you think about money.
  • Two classics stand out: The Intelligent Investor for valuing investments, and Rich Dad Poor Dad for the owner's mindset.
  • Reading is only step one. The real wealth comes from acting on what you learn.
Read More
May 30, 2026
What Is a Roth Conversion? A Simple Guide
  • A Roth conversion moves money from a traditional retirement account into a Roth account.
  • You pay taxes on the money now, in exchange for tax-free growth and withdrawals later.
  • It can pay off if you expect higher taxes or more income in the future, but the timing and tax hit matter a lot.
Read More
May 30, 2026
Trailing Stop Loss: How to Protect Your Gains
  • A trailing stop loss is an order that automatically sells a stock if it falls a set percentage from its recent high.
  • As the stock rises, the sell point rises with it, locking in gains while capping losses.
  • It's most useful for active strategies like momentum investing, not for long-term buy-and-hold.
Read More
May 30, 2026
5 Types of Wealth: Why Money Is Only One of Them
  • Real wealth is more than a bank balance. It spans your finances, health, mind, purpose, and freedom.
  • Money is powerful, but it amplifies the life you already have rather than fixing a broken one.
  • True financial wealth means your cash flow covers your expenses, so your money works while you live.
Read More
May 30, 2026
How to Invest in Private Equity: A Beginner's Guide
  • Private equity means investing in companies that aren't listed on the stock market.
  • Traditional private equity is built for experienced, high-net-worth investors with large amounts to invest.
  • New rules have opened more accessible paths, like startup crowdfunding and real estate deals, often starting around $100.
Read More
May 30, 2026
What Is a Call Option? A Simple Guide With Examples
  • A call option gives you the right to buy a stock at a set price by a set date.
  • Investors buy calls when they expect a stock to rise, using less money than buying the shares outright.
  • The most you can lose buying a call is the premium, but time works against you, so it's an advanced tool.
Read More
May 30, 2026
EBITDA Formula: How to Calculate It Step by Step
  • EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, a measure of a company's core profit.
  • The formula adds those four items back to net income to show what the underlying business earns.
  • Investors use EBITDA to compare companies and to judge how many times earnings a stock is selling for.
Read More
May 30, 2026
What Is a Stock Option? A Plain-English Guide
  • A stock option is a contract giving you the right, but not the obligation, to buy or sell a stock at a set price by a set date.
  • There are two types: calls (the right to buy) and puts (the right to sell).
  • Options are powerful but risky, so they suit investors who already have the basics down.
Read More
May 30, 2026
Put Option: What It Is and How It Works
  • A put option gives you the right to sell a stock at a set price by a set date.
  • Investors use puts to bet a stock will fall, or as insurance to protect shares they own.
  • The most you can lose buying a put is the premium you paid, which makes it a defined-risk tool.
Read More
May 30, 2026
Operating Margin: What It Is and How to Calculate It
  • Operating margin shows how much profit a company keeps from its core business after paying its running costs.
  • The formula is operating income divided by revenue, shown as a percent.
  • A strong, steady operating margin signals a well-run business that controls its costs.
Read More
1 2 3 22
Share via
Copy link