Sam Altman Testifies Elon Musk Sought Control of OpenAI and Backed For-Profit Shift

The testimony painted a picture of repeated discussions in 2017 and 2018 about OpenAI’s structure and funding needs. Altman said there was a moral boost at the company when Musk became less involved because his demands for short-term contribution metrics were out of step with the long-term research being pursued.

Musk has testified that he was a “fool” to trust Altman and provided $38 million in funding that helped create what became an $800 billion company. OpenAI has countered that Musk walked away after co-founders denied his proposals for majority control.

The case has drawn intense attention in Silicon Valley as it pits two of the sector’s most prominent figures against each other. A victory for Musk could force OpenAI to unwind its commercial structure, while a loss would likely solidify Altman’s position as the company pursues a potential initial public offering.

OpenAI, the maker of ChatGPT, has raised hundreds of billions of dollars from investors and is valued at roughly $730 billion. The trial’s outcome could affect the broader AI competitive landscape, including Musk’s own startup xAI. Former OpenAI executives including Ilya Sutskever and Mira Murati have provided testimony that touched on Altman’s leadership style.

Murati said in taped deposition played in court that Altman created an environment of chaos by telling different things to different people. Altman used his time on the stand to defend his record and highlight OpenAI’s current safety efforts. He also addressed his brief removal as CEO in late 2023, telling the board it was a terrible way to handle the situation without damaging the company he said he loved.

Testimony has detailed how Musk initially helped fund OpenAI but grew dissatisfied with its direction. Altman said Musk’s desire for complete control stood in contrast to his public statements that no single person should control the future of artificial intelligence.

Documents and messages shown in court included text exchanges between Altman and Shivon Zilis, a former OpenAI board member and mother of four of Musk’s children, discussing how best to present business ideas to Musk without irking him. Altman said he did not discuss Microsoft’s $10 billion investment with Musk because Musk was preparing to launch a competing AI lab.

Closing arguments are expected soon, after which the jury will deliberate. U.S. The trial has offered a rare public look at the internal dynamics, funding discussions and competing visions that shaped one of the most influential companies in the current AI boom.