Elon Musk Testifies in Federal Trial Against Sam Altman Over OpenAI Governance
In the first day of proceedings, Musk claimed the shift to a for-profit structure violated the organisation's founding mission, while OpenAI's counsel alleged a breach of investment pledges.
Elon Musk appeared as the first witness in a federal trial challenging the governance and evolution of OpenAI. The proceedings, presided over by US District Judge Yvonne Gonzalez Rogers, centre on the 2019 decision to convert the organisation from a non-profit to a capped-profit structure. Musk testified that he co-founded the entity to prevent artificial general intelligence from becoming a catastrophic outcome, citing concerns regarding unchecked development by competitors like Google.
Musk's legal team argued that the organisation's shift toward a for-profit model, backed by a $10 billion investment from Microsoft, violated the original vision of an open-source nonprofit. During his testimony, Musk characterised the dominance of the commercial arm as a situation where the tail wags the dog, comparing the loss of open access to a museum selling its Picassos and locking them away from public view. He stated that the creation of a for-profit entity undermined the safety and benevolence goals established when he lobbied governments, including meeting with President Barack Obama in 2015, to regulate AI.
Conversely, OpenAI's attorney William Savitt presented a counter-narrative to the jury. Savitt argued that Musk breached his pledge to invest $1 billion in the startup, delivering only approximately $38 million over five years. The defence team contended that Musk filed the lawsuit only after founding his own competitor, xAI, in 2023, suggesting the legal action was motivated by a desire to harm a rival rather than uphold the original mission.
The courtroom proceedings were marked by a tense atmosphere that spilled over into public discourse. Following online exchanges where Musk referred to Altman as "Scam Altman", Judge Gonzalez Rogers issued a specific warning to both parties to curb their use of social media. She urged them to avoid inflaming tensions outside the courtroom, though she declined to impose a formal gag order. Both sides subsequently agreed to refrain from using social media to influence the case.
Technical difficulties with wireless microphones for Musk's legal team during opening statements prompted a moment of levity from the bench. Judge Rogers joked about the issues, remarking that the team seemed funded by the federal government and asking if this was the Microsoft cloud. Meanwhile, Altman and OpenAI president Greg Brockman observed from the public gallery, with Altman departing just before Musk's testimony began.
As the trial continues, the outcome may have significant implications for OpenAI's plans for an initial public offering and its future leadership. Musk is seeking $150 billion in damages, intended for the organisation's charitable arm, and is demanding a return to non-profit status. The jury will now weigh the conflicting accounts of the founders' intentions and the subsequent structural changes that define the current state of the company.
