OpenAI Lawsuit Claims Deviation from Nonprofit Mission in Brockman Testimony

The lawsuit filed by Elon Musk against OpenAI and its leaders, including President Greg Brockman and CEO Sam Altman, alleges that the company shifted away from its original nonprofit mission to prioritize profits after Musk's departure from the board in 2018.

The case is being heard in federal court in Oakland, California. Musk claims that OpenAI breached commitments made when he co-founded the organization in 2015, including agreements to keep it as a nonprofit focused on developing artificial intelligence for the benefit of humanity, and that Altman and Brockman orchestrated a transition to a for-profit model without his involvement.

During testimony, Brockman disclosed that his personal stake in OpenAI is valued at approximately $30 billion. He described his involvement since the company's founding, stating in court that he had invested "blood, sweat, and tears" into building OpenAI.

Brockman also revealed that the nonprofit foundation holds a stake worth more than $150 billion, with OpenAI's overall valuation at $852 billion. Employees own about 25 percent of the shares, and the foundation owns 27 percent. He testified that OpenAI received less than $150 million from donors in total, and emphasized that the company's mission remains focused on beneficial artificial general intelligence, which he said gives it a "moral high ground" over competitors.

" according to court records referenced in the trial. Brockman admitted he did not fulfill an initial promise to donate $100,000 to OpenAI. He also discussed his investments in companies that partner with OpenAI, including Cerebras, CoreWeave, and Helion Energy.

Brockman noted his recent donations to super PACs supporting artificial intelligence and President Trump, linking them to OpenAI's goals.

Court filings show that Musk sent messages to Brockman two days before the trial, proposing a settlement and stating, "By the end of this week, you and Sam will be the most hated men in America. " OpenAI's lawyers described the messages as evidence of Musk's intent to disrupt a competitor, particularly given his founding of xAI after leaving OpenAI.

A judge ruled that the messages would not be admitted as evidence in the trial. OpenAI has stated in filings that Musk showed no interest in nonprofit or open-source AI models during his time at Tesla, and that his departure was due to disagreements over the company's direction.

The trial has highlighted OpenAI's early operations, which began in Brockman's San Francisco apartment. Brockman testified that his initial $10 million stake came through Altman's family office and was disclosed to Musk in 2017. OpenAI transitioned to include a for-profit arm in 2019, transferring assets from the nonprofit entity, after which Brockman received a significant stake.

The company is exploring a potential initial public offering within the next two years, according to Brockman's testimony.

Separately, Musk agreed to a $1.5 million fine to settle a lawsuit with the U.S. Securities and Exchange Commission over delayed disclosure of his stock purchases during the 2022 acquisition of Twitter, now known as X. The settlement, which does not include an admission of wrongdoing, was announced during the OpenAI trial.

Musk's attorneys are expected to continue questioning Brockman, and the case may include testimony from others involved in OpenAI's founding.