In his opening statement, Musk’s lawyer, Steven Molo, said Altman and Brockman, with Microsoft’s help, had taken control of a charity “whose mission was the safe, open development of artificial intelligence”. Musk is seeking damages and Altman’s removal from OpenAI’s board.
Elon Musk, Tesla’s chief executive and an early co-founder of OpenAI, took the stand on Tuesday in a high-stakes trial over his dispute with former friend Sam Altman, in a case that could affect the future direction of artificial intelligence (AI).
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In 2024, Musk filed the lawsuit against Altman, OpenAI co-founder Greg Brockman and Microsoft over OpenAI’s shift away from its original non-profit structure.
“Fundamentally, I think they’re going to try to make this lawsuit ... very complicated, but it’s actually very simple,” said Musk. “Which is that it's not OK to steal a charity.”
In his opening statement, Musk’s lawyer, Steven Molo, said Altman and Brockman, with Microsoft’s help, had taken control of a charity “whose mission was the safe, open development of artificial intelligence”. Musk is seeking damages and Altman’s removal from OpenAI’s board.
The trial started on Monday at the US District Court for the Northern District of California in Oakland, with Judge Yvonne Gonzalez Rogers and is expected to take two to three weeks.
What did Musk say?
Musk was the first witness called to testify in the trial on Tuesday, with his lawyer starting off by asking about his life story.
This included details about his move, at 17, from South Africa to Canada, where for a time Musk said he worked as a lumberjack among other odd jobs, then to the US. He recounted the slew of companies he founded and runs, including SpaceX, Tesla, The Boring Company, Neuralink and others.
Asked how he has time for everything, Musk said he works 80 to 100 hours a week, doesn't take vacations and owns no vacation homes or yachts.
Molo also asked Musk about his views on AI. Musk said he expects AI to be “smarter than any human” as soon as next year. Musk said a longstanding concern about AI is the question of what happens when computers become much smarter than humans.
Comparing it to having a “very smart child,” Musk said when the child grows up “you can't control that child,” but you can instil values such as honesty, integrity and being good.
Musk recounted his version of OpenAI's founding, which he said essentially happened because of a discussion he had with Google co-founder Larry Page, who called him a “speciesist" for elevating the survival of humanity over that of AI.
The kinship between Musk and Altman was forged in 2015 when they agreed to build AI more responsibly and safely than the profit-driven companies controlled by Google's Page and Sergey Brin and Facebook founder Mark Zuckerberg, according to evidence submitted ahead of the trial.
At that time, Musk said, Google had all the money, all the computers and all the talent for AI. “There was no counterbalance.”
Musk recalled there was discussion early on about alternative sources for funding OpenAI beyond donations, and he wasn't opposed to it having a for-profit arm, but “the tail shouldn't wag the dog.” There would be a profit limit, and once artificial general intelligence, AGI, was “figured out,” the for-profit would cease to exist.
OpenAI says Musk tries to undercut its growth
OpenAI has brushed off Musk’s allegations as a case of sour grapes aimed at undercutting its rapid growth and bolstering Musk’s own xAI, which he launched in 2023 as a competitor.
In his opening statement, OpenAI lawyer William Savitt told jurors, “We are here because Mr Musk didn’t get his way with OpenAI.”
Savitt said Musk used his promises of funding to bully OpenAI founding members and tried to take control of OpenAI and merge it with Tesla. In fact, he said Musk wanted to form a for-profit company and own more than 50% of it.
There is no record, Savitt said, of promises made to Musk that OpenAI was going to remain a nonprofit forever. What Musk ultimately cared about, he said, was not OpenAI’s nonprofit status but winning the AI race with Google.
Musk's attorney said the case is not about Musk, but rather Altman, Brockman and Microsoft.
By 2017, about two years after OpenAI's founding, it became clear that OpenAI would need more money, and Molo said the founders eventually settled on the idea of creating a for-profit arm of OpenAI that would support the nonprofit. Terms were capped for investors so they “couldn't make infinite profit.”
“There is nothing wrong with a nonprofit having a for-profit subsidiary, but [it] has to advance the mission,” Molo said.
Musk is expected to continue testifying on Wednesday.
Altman is also expected to testify, along with Microsoft's chief executive, Satya Nadella.
Altman, Musk, and other founders launched OpenAI in 2015 as a non-profit organisation.
Musk was the biggest individual financial backer of OpenAI in the beginning, contributing more than $44 million (€38 million) to the then-startup.
Musk left OpenAI’s board in 2018 after clashing with Altman. A year earlier, he reportedly made a failed bid to get more control over the company.
