Elon Musk Testifies in Lawsuit Against OpenAI and Sam Altman

Tesla CEO Elon Musk testified on Wednesday in an Oakland courthouse as part of his lawsuit against OpenAI and its CEO Sam Altman. The lawsuit, filed in 2024, alleges breach of contract, breach of charitable trust, and unjust enrichment, seeking billions in damages to fund OpenAI's nonprofit arm and changes in leadership, including the removal of Altman.

Musk co-founded OpenAI in 2015 as a nonprofit organization focused on public benefit. OpenAI has stated in court filings that Musk supported a potential shift to a for-profit structure and left after failing to gain control, and that his $38 million donation from 2015 to 2017 was used as intended.

During cross-examination, Musk was asked to explain cryptocurrency in the context of OpenAI's 2018 plans for an initial coin offering to fund a for-profit subsidiary. " The initial coin offering plans were ultimately abandoned. " The judge intervened multiple times, including cutting off Musk's discussions on AI doomsday scenarios and reminding him, "You're not a lawyer," after repeated references to stealing from a charity.

Musk emphasized his role as a major early donor, providing $38 million between 2015 and 2017. He alleges that Altman and OpenAI co-founder Greg Brockman betrayed the organization's original charitable mission by converting it into a for-profit company now valued at over $850 billion.

OpenAI has countered in court documents that Musk wanted to merge OpenAI with Tesla and used his investment to influence the founders. Evidence presented includes private emails, texts, and diary entries related to OpenAI's formation and the dispute.

The trial is expected to last three weeks and will include testimony from Altman and other figures in the technology industry.

The testimony highlighted internal dynamics at OpenAI, including its investment deal with Microsoft and launches of commercial products. Musk testified that he chose a nonprofit structure for OpenAI to ensure public good, despite having created many for-profit companies.

The case has drawn demonstrators outside the Oakland courthouse. No publicly released evidence has documented specific instances of cryptocurrency use in OpenAI's funding beyond the abandoned 2018 plans, according to available reports. Witness testimony continues.