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Elon Musk Testifies in OpenAI Lawsuit Over Shift From Nonprofit
Elon Musk testified for a second day in a federal trial in Oakland, California, accusing OpenAI CEO Sam Altman of betraying the company's founding nonprofit mission. Musk, who co-founded OpenAI in 2015 and invested $38 million, claims the shift to a for-profit entity violated initial agreements.
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Elon Musk testified in federal court in Oakland, California, on Wednesday, detailing allegations that OpenAI and its CEO Sam Altman breached commitments to operate as a nonprofit dedicated to benefiting humanity. The lawsuit, filed by Musk, claims that OpenAI's transition to a for-profit entity violated founding agreements from 2015.
According to court filings, Musk invested approximately $38 million in OpenAI between December 2015 and May 2017. OpenAI's legal team stated in court that no binding promises were made to maintain the nonprofit structure indefinitely.
The trial, overseen by U.S. District Judge Yvonne Gonzalez Rogers, began on Monday and is projected to continue for about four weeks. During Musk's 3.5-hour testimony, he described his initial involvement in founding OpenAI with Altman and Greg Brockman as a nonprofit aimed at safely developing artificial general intelligence.
" Under cross-examination by OpenAI attorney William Savitt, Musk was questioned about emails from before 2015 that discussed potential for-profit models and tax deductions for donations. " The judge interjected, saying, "We are not going to go there," according to accounts from the courtroom.
Musk testified that he initially proposed holding a majority stake and control of four out of seven board seats at OpenAI, with plans to reduce his ownership over time, similar to his current 15% stake in Tesla after starting with a majority. OpenAI's representatives argued in court that no assurances were provided regarding Musk relinquishing board control.
The lawsuit also names Brockman and Microsoft as defendants, with Musk seeking Altman's removal from the board, a return to nonprofit status, and the transfer of gains estimated at $150 billion to a charitable trust.
OpenAI was established in 2015 amid concerns about competitors like Google DeepMind. Musk departed the organization in 2018 following disagreements and founded xAI in 2023. Court documents include a 2018 email from Musk suggesting a potential merger of OpenAI with Tesla to better compete with Google.
