Musk v Altman Trial: OpenAI Lawyers Grill Elon Musk
- OpenAI as OpenAI’s attorney, William Savitt, aggressively cross-examined Elon Musk, probing his commitment to the company’s initial nonprofit structure and questioning his understanding of OpenAI’s safety measures.
- The cross-examination, which began on Wednesday and will continue on Thursday, focused on Musk’s concerns about OpenAI’s shift towards a for-profit model.
- Musk stated he “was a fool” for providing funding that ultimately contributed to the creation of an $800 billion company, as reported by CNBC.
Tensions escalated on Wednesday during the trial of Musk v. OpenAI as OpenAI’s attorney, William Savitt, aggressively cross-examined Elon Musk, probing his commitment to the company’s initial nonprofit structure and questioning his understanding of OpenAI’s safety measures. Musk, who co-founded OpenAI in 2015, alleges that the company abandoned its charitable mission in pursuit of commercial gain.
The cross-examination, which began on Wednesday and will continue on Thursday, focused on Musk’s concerns about OpenAI’s shift towards a for-profit model. According to reporting from CNBC, Savitt implied that Musk lacks a comprehensive understanding of OpenAI’s safety efforts. Musk testified that Microsoft’s $10 billion investment in OpenAI in 2023 was a turning point, leading him to lose trust in CEO Sam Altman.
Musk stated he “was a fool” for providing funding that ultimately contributed to the creation of an $800 billion company, as reported by CNBC. He initially expressed concerns in 2018 that the nonprofit could be “stolen,” according to testimony presented in court.
Musk’s Claims and OpenAI’s Defense
Musk filed the lawsuit against OpenAI, Altman, and President Greg Brockman two years ago, alleging they violated commitments to maintain the artificial intelligence lab’s nonprofit status. He claims the approximately $38 million he contributed was used for unauthorized commercial purposes, diverging from the company’s original charitable mission, as detailed in reporting from ABC News.
OpenAI has strongly refuted these claims, characterizing them as “baseless.” The company argues that Musk was aware of plans for a for-profit structure and left the board in 2018 after a failed attempt to merge OpenAI with Tesla. Following Musk’s departure, OpenAI established a for-profit subsidiary to facilitate fundraising and accelerate technological development.
Key Testimony and Contentious Exchanges
During Wednesday’s proceedings, Musk’s lawyer, Steven Molo, questioned him about his understanding of OpenAI’s corporate structure and his relationships with OpenAI executives. The Guardian reported that the cross-examination became contentious, with Musk frequently objecting to Savitt’s questioning, claiming they were “designed to trick” him and were not straightforward.
The judge intervened multiple times, instructing Musk to provide simple yes-or-no answers. Musk repeatedly accused Altman and Brockman of betraying the original intent of OpenAI, stating they “stole a charity” and risked endangering humanity with their pursuit of artificial intelligence, according to The Guardian.
Financial Stakes and Potential Damages
Musk is seeking $150 billion in damages from OpenAI and its leaders, as reported by ABC News. He also seeks the removal of Altman and Brockman, the reversal of the for-profit conversion, and the redistribution of funds to OpenAI’s nonprofit arm. OpenAI is currently valued at $852 billion, following a funding round in March.
The case is being heard by Judge Yvonne Gonzalez Rogers with a jury of nine, and no alternates, in federal court in Oakland, California. Potential witnesses include Altman, Musk, and Microsoft CEO Satya Nadella.
Background to the Dispute
Musk co-founded OpenAI in 2015 with the stated goal of developing artificial intelligence for the benefit of humanity. The initial agreement stipulated a nonprofit structure. However, the company later sought to raise capital to fund its ambitious research and development efforts, leading to the creation of a for-profit subsidiary. This shift sparked disagreement among the founders, ultimately leading to Musk’s departure from the board in 2018.
The dispute centers on whether this transition violated the original founding agreement and whether OpenAI has prioritized commercial interests over its stated mission. Musk argues that the company’s pursuit of profit poses a threat to humanity, while OpenAI maintains that its commercial success is essential for advancing AI research and development.
Jared Birchall, who manages Musk’s family office and also holds executive positions at xAI and Neuralink, is scheduled to testify next, according to CNBC.