Select Language:
Elon Musk took the stand Tuesday in a high-stakes trial concerning the future of OpenAI, framing his lawsuit against the ChatGPT developer as a defense of charitable donations. The richest person in the world is suing OpenAI, along with CEO Sam Altman and President Greg Brockman, accusing them of betraying the organization’s original mission to serve as a responsible steward of AI for humanity by turning it into a profit-driven enterprise.
“If it becomes acceptable to loot a charity, America’s entire foundation of charitable giving will be at risk,” Musk testified on the trial’s opening day. He described OpenAI as his brainchild, explaining, “I came up with the idea, the name, recruited the key players, shared my knowledge, and provided all initial funding. It was created primarily as a charity not intended to benefit any individual person. I purposely chose to keep it non-profit.”
Prior to Musk’s testimony, OpenAI’s lawyer, William Savitt, told jurors that Musk was motivated by profit from the start. Savitt claimed Musk helped fund OpenAI’s early stages with the aim of transforming it into a for-profit organization, possibly with aspirations to assume the role of CEO. According to Savitt, Musk was after “control of the entire operation” and only sued after he was unable to achieve his goals. Musk launched his own AI company, xAI, in 2023, which is now part of SpaceX.
OpenAI’s legal team argued that establishing a for-profit arm in March 2019 was crucial for acquiring computing resources and paying top researchers to stay competitive with other AI labs like Google’s DeepMind. Musk’s attorney, Steven Molo, countered during his opening statement that Musk and other OpenAI founders were driven by greed, citing the company’s investment from Microsoft in January 2023 valued at $10 billion. Molo emphasized, “This wasn’t a scheme to get rich; it was about pushing AI forward responsibly.”
Musk aims to recover $150 billion in damages, requesting that OpenAI revert to nonprofit status, with Altman and Brockman removed from leadership roles. His claims include breaches of charitable trust and unjust enrichment. While Musk has characterized OpenAI as a charitable entity, the organization originally identified itself as a nonprofit AI research company in 2015.
The judge, Yvonne Gonzalez Rogers, reprimanded Musk for his social media activity, especially posts calling Altman a “Scam Altman” and accusing him of “stealing” from a charity. Rogers urged Musk to curb his social media use outside the courtroom, acknowledging reservations about issuing a gag order but emphasizing the importance of controlling social media conduct. Both Musk and Altman agreed to tone down their online commentary.
Witnesses such as Altman and Microsoft CEO Satya Nadella are expected to testify later in the trial. The proceedings offer an inside look at the personalities behind OpenAI’s evolution from a nonprofit startup in Brockman’s apartment to a tech valuation surpassing $850 billion. The case could also impact OpenAI’s future plans, including a potential IPO, and might intensify public concerns about AI technology.
Although Musk and Altman co-founded OpenAI in 2015 with the goal of advancing AI for human benefit and countering rivals like Google, opinions diverge on how much emphasis Musk placed on AI safety. Musk testified that he was deeply concerned about AI risks, especially after discussions with former President Obama and Google’s Larry Page, openly criticizing Google’s approach. Conversely, Savitt argued Musk prioritized profit over safety, belittling employees dedicated to AI safety as “jackasses.”
Musk contributed roughly $38 million for OpenAI’s initial mission and personally approached CEOs like Nadella and Nvidia’s Jensen Huang to secure computing resources. The company created its for-profit entity 13 months after Musk left its board. Microsoft’s lawyer, Russell Cohen, defended the company’s responsible partnership and denied any wrongdoing.
OpenAI faces increasing competition from rivals including Anthropic, investing billions into computational infrastructure, and its valuation could reach $1 trillion with a successful IPO, according to Reuters. Musk’s new venture, xAI, lags behind in usage and has been integrated into SpaceX, which may pursue its own IPO in the future. Last year, OpenAI restructured again, becoming a public benefit corporation, with the nonprofit holding a 26% stake and warrants tied to its valuation milestones.
ChatGPT
Perplexity
Gemini AI
Grok AI
