Topline
Elon Musk and Sam Altman’s ongoing feud has moved to the witness stand recently as Musk’s lawsuit against OpenAI has gone to trial, producing some revelatory information about the dueling billionaires and their experience at OpenAI.
The trial between Musk and Altman began last month.
Photo by Muhammed Selim Korkutata/Anadolu via Getty Images
Key Facts
Altman: The OpenAI chief recalled during his first day of testimony on Tuesday that Musk, a founding member of OpenAI, once wanted a 90% stake in the company and had suggested he may pass control of OpenAI to his children in the event of his death.
Altman said Musk did not understand “how to run a good research lab,” alleging Musk “demotivated” some of OpenAI’s key researchers by ranking the company’s employees.
Altman fired back at Musk’s accusations he had “stolen a charity,” saying, “This whole ‘you can’t steal a charity.’ I agree you can’t steal it. Mr. Musk did try to kill it, I guess twice.”
Musk: Musk, who testified during his three days in court over a week ago, said Altman and others at OpenAI “reassured” him the company would “continue as a nonprofit,” alleging OpenAI’s for-profit arm “has taken the super majority of the value of the nonprofit.”
“I don’t think you should turn a nonprofit into a for-profit,” Musk added, saying nothing was wrong with running a for-profit company but noting, “you just can’t steal a charity.”
Musk, who accused OpenAI lawyer Bill Savitt of cutting him off “all the time” during his testimony, also confirmed in court he did not fulfill his $1 billion commitment to OpenAI because he “lost confidence in the team” (Musk ended up contributing $38 million).
Musk said he was a “fool” to give OpenAI the $38 million and said he provided “essentially free funding to create what would become an $800 billion company,” later claiming, “Without me, OpenAI wouldn’t exist.”
Musk testified to directly texting Altman that OpenAI pulled a “bait-and-switch” after learning of Microsoft’s $10 billion investment into OpenAI in 2022.
What Else Did Altman Say On The Stand On Tuesday?
Altman disclosed his ownership of more than $2 billion worth of personal stakes in companies that have worked with OpenAI, revealing a $1.65 billion stake in power company Helion Energy, sending his net worth north of $4 billion.
Tangent
The Musk-Altman trial revealed texts between former OpenAI chief technology officer Mira Murati and Altman after Altman’s brief firing in 2023, when the company made the ouster after determining Altman was not “consistently candid” with his communications. The texts show Altman repeatedly asking to meet with the company’s board and Microsoft CEO Satya Nadella. Altman asks Murati, who rejected his requests for the meetings, if there was “any way you can turn this around?”
Key Background
Musk is seeking over $150 billion in damages in the landmark trial in addition to the removal of Altman and OpenAI president Greg Brockman. He is also pushing for OpenAI to revert to its non-profit structure. OpenAI’s team has characterized Musk’s lawsuit as “sour grapes,” claiming Musk’s exit from the company was not one made on a moral standing, but done out of frustration he could not gain control of OpenAI. OpenAI established its for-profit arm valued at $500 billion last year. Microsoft held a roughly 27% stake in the company when it was established, while OpenAI’s non-profit arm, OpenAI Foundation, held a 26% stake. A judge dismissed Musk’s fraud claims against Altman and OpenAI last month, but allowed Musk’s claims of breach of charitable trust and unjust enrichment to be litigated.
Further Reading
Musk Admits Distilling OpenAI Data For His XAI—Here’s Why That’s Controversial (Forbes)
Sam Altman Defends Himself From Conflict Of Interest Claims At OpenAI Trial: ‘Always Been Recused’ (Forbes)