Elon Musk spent nearly $300 million to help elect Donald Trump, transformed himself into a MAGA superstar, and appeared poised to become the president’s “first buddy.” But within days of the inauguration, Musk was publicly iced out of a $500 billion AI deal, mocked by Trump, and replaced in the inner circle by his longtime nemesis, OpenAI CEO Sam Altman. Now, a high‑stakes lawsuit heading to a federal courtroom could unravel OpenAI entirely – and expose a bitter Silicon Valley blood feud driven by ego, betrayal, and a battle for the future of artificial intelligence.
The drama began at Trump’s second inauguration. Inside the Capitol rotunda, Jared Kushner worked the room, shaking hands with tech billionaires who had come to pay homage – Google’s Sundar Pichai, Meta’s Mark Zuckerberg, Amazon’s Jeff Bezos. But Kushner conspicuously passed over Musk, the man who had just spent $290 million of his own fortune to help get Trump elected.
“It was an odd slight,” one tech insider told The Post.
Two days later, the snub became a public humiliation. Trump announced “Stargate,” a massive $500 billion AI data center joint venture with OpenAI – icing out Musk’s own AI company, xAI. When a reporter asked about Musk’s exclusion, Trump bluntly replied: “He hates one of the people in the deal.”
The person Trump referred to was Sam Altman. Musk immediately took to X, calling Altman a “swindler” and a “liar” and claiming Stargate lacked the funds it purported to have.
The Fall of the ‘First Buddy’: How Musk Lost the White House
Musk’s political transformation was sudden and total. A self‑described libertarian who had voted for Democrats in the past, he dove headfirst into Trump’s 2024 campaign, launching a get‑out‑the‑vote operation in key swing states and appearing on stage with Trump at rallies. He even relocated to Pennsylvania to campaign personally.
But Musk may have misjudged the depth of the Kushner family’s ties to Altman. Jared Kushner’s brother, Joshua, is a major OpenAI backer. Through his venture capital firm, Thrive Capital, Joshua Kushner made a series of investments in OpenAI between 2022 and 2026 totaling well over $2 billion.
“Politics is a backstabbing world, and I was really shocked that Elon got involved in it,” a former Musk associate told The Post. “The Elon I knew was very libertarian, a live‑and‑let-live sort of attitude, not particularly right or left. I suspect some of the politics with him are just who he’s around.”
After a brief falling‑out between Musk and Trump in June 2025, Altman stepped into the void. By September, Altman was accompanying the president to the UK to discuss AI initiatives. He was also part of Trump’s Middle East tour, cozying up to Saudi leaders. The new “first buddy” had arrived.
The Lawsuit: Musk’s ‘Long Con’ Allegation Could Unravel OpenAI
Musk’s animosity toward Altman is not new. The two co‑founded OpenAI together in 2015 as a non‑profit dedicated to developing AI for the benefit of humanity. Musk claims he put in $38 million in seed money and helped recruit top talent.
But in 2018, after Altman named himself president, Musk stepped down from the board, citing a conflict of interest with Tesla’s autonomous driving program. He later wrote an email to OpenAI brass: “Guys, I’ve had enough […] Either go do something on your own or continue with OpenAI as a nonprofit. I’m just being a fool who is essentially providing free funding for you to create a startup.”
Now, Musk is suing OpenAI, Altman, co‑founder Greg Brockman, and Microsoft (which owns 27% of OpenAI) in a lawsuit set to be heard in an Oakland, California federal courtroom later this month. He alleges he was “manipulated” by Altman’s “long con” and that OpenAI breached its founding non‑profit mission by shifting to a for‑profit structure and partnering closely with Microsoft.
Musk is demanding that OpenAI return as much as $150 billion in “ill‑gotten” gains to its non‑profit arm, fire Altman and Brockman, and unwind the for‑profit restructuring. Any damages he is awarded, he says, will go to charity.
OpenAI has called the lawsuit “baseless,” a “sham,” and a “harassment campaign.” In January, the company warned investors that Musk would make “deliberately outlandish, attention‑grabbing claims” ahead of the trial.
The Men Behind the Feud: Ego, Lifestyle, and Philosophy
The clash between Musk and Altman is as much about personality as it is about business.
Elon Musk – father of 14, famously unmaterialistic, has sold off most of his possessions, sleeps on office floors and borrowed sofas. He drives a red Tesla Model 3 – not even his company’s spiffiest model. Former SpaceX AI researcher Vincent Peters told The Post: “Unlike most tech entrepreneurs, Elon’s not going to give you a fireside chat about work that someone else at the company has done. He’s been around forever and no one has accused him of being untrustworthy.”
A former close associate said: “The only reason he cares about money is to the extent that it allows him to do the things he wants to do. He’ll spend money for privacy or comfort, but you’ll never hear him bragging about a $100 million Hawaii compound.”
Sam Altman – lives the high life. His real estate portfolio includes a $27 million San Francisco mansion, a $16 million Napa Valley ranch, and a 22‑acre, $49 million Hawaii compound. He owns a $250 million superyacht with a helipad and nightclub, a $20 million McLaren F1 hypercar, and other luxuries. He has one child by surrogacy with his software engineer husband, Oliver Mulherin.
Altman is also facing a separate legal battle: his sister, Annie Altman, filed a civil suit alleging he sexually abused her for a decade beginning in 1997, when he was 12 and she was three. Altman has denied the accusations and is countersuing for defamation.
“I think everyone would agree that [Altman] is not a deep technical thinker,” former OpenAI researcher Scott Aaronson told The Post. “He’s obviously very intelligent, you can talk to him about any technical thing – he will listen and ask good questions.”
Aaronson compared Altman to Steve Jobs: a manager and visionary who inspires teams rather than writing code.
The Stakes: What the Lawsuit Means for OpenAI and AI’s Future
OpenAI is currently valued at over $850 billion, with annual revenue of around $20 billion. Its flagship product, ChatGPT, boasts 900 million weekly users – but only 50 million are paid subscribers. The company’s shift to a for‑profit model has been controversial, and Musk’s lawsuit could force it to restructure or pay massive damages.
If Musk wins, OpenAI could be forced to return up to $150 billion to its non‑profit arm – a financial blow that might cripple the company. Even if he loses, the lawsuit has already damaged OpenAI’s reputation and distracted its leadership.
Meanwhile, Musk has launched his own AI company, xAI, which partners with X (formerly Twitter) and produces Grok, a chatbot marketed as a “maximum truth‑seeking AI” that counters political correctness and bias.
The ‘Twink Army’ and Other Rumors
Nasty tales have floated around Silicon Valley for years. Some allege Altman surrounds himself with a “twink army” of young attractive men. Others have gone further, suggesting Altman was involved in the mysterious death of former OpenAI researcher Suchir Balaji, 26, who died by an apparent suicide in his San Francisco apartment in November 2024. Balaji had been a whistleblower on copyright issues. Altman has denied all accusations.
These rumors have not been substantiated, but they add to the toxic atmosphere surrounding the trial.
What Happens Next
- Lawsuit trial: The case is set to be heard in Oakland, California, later this month. The trial could last weeks.
- Possible settlement: Both sides have strong incentives to avoid a public airing of dirty laundry. A settlement is possible.
- Impact on OpenAI: Even a partial loss could force OpenAI to restructure, potentially affecting its valuation and its partnership with Microsoft.
- Political fallout: The feud has already embarrassed the Trump administration, which must now navigate between two major donors and allies.
FAQ: Musk vs. Altman / OpenAI Lawsuit
Q: What is Elon Musk suing OpenAI over?
A: He alleges that OpenAI breached its founding non‑profit mission by shifting to a for‑profit structure and partnering with Microsoft, and that he was “manipulated” by Sam Altman’s “long con.”
Q: How much money did Musk spend on Trump’s campaign?
A: Approximately $290 million of his own money.
Q: Why did Trump snub Musk?
A: Trump’s son‑in‑law Jared Kushner passed over Musk at the inauguration, and Trump later said Musk “hates one of the people in the deal” – referring to Sam Altman. The Kushner family has deep financial ties to Altman’s OpenAI.
Q: What is Musk demanding?
A: He wants OpenAI to return up to $150 billion in “ill‑gotten” gains to its non‑profit arm, fire Altman and Greg Brockman, and unwind the for‑profit restructuring.
Q: What is OpenAI’s response?
A: The company has called the lawsuit “baseless,” a “sham,” and a “harassment campaign.”
Q: Where can I follow updates?
A: The trial will be covered by major tech and business news outlets.
