Ilya Sutskever Testifies in Elon Musk Trial, Defends Role in Altman Ouster and Reveals $7 Billion Stake
In testimony during Elon Musk's legal action against OpenAI and Microsoft, the witness detailed the financial pressures that drove the shift to a for-profit structure and expressed deep personal investment in the company's survival.
Former OpenAI chief scientist Ilya Sutskever took the witness stand on Monday during Elon Musk's trial against OpenAI and Microsoft. The proceedings marked a significant moment as Sutskever defended his involvement in the 2023 removal of CEO Sam Altman while simultaneously revealing a substantial financial interest in the organisation.
Sutskever stated that he supported the decision to fire Altman because an environment where executives lack correct information is not conducive to achieving grand goals. However, he was critical of his board colleagues, noting they rushed the process, lacked experience, and accepted poor legal advice. He emphasised that he did not want OpenAI destroyed, describing his personal connection to the project as having put his life into it.
The testimony highlighted Sutskever's significant ownership stake in OpenAI's for-profit arm, which he values at approximately $7 billion. This makes him one of the largest known individual shareholders of the company. He arrived in the courtroom wearing a dress shirt and slacks, appearing dejected about no longer being involved with OpenAI after leaving to form a competing AI lab in 2024.
Microsoft CEO Satya Nadella also testified, attributing the push for a for-profit structure to the company's financial pressures. Nadella explained that while Microsoft initially supported OpenAI with discounted cloud computing, rising costs made the arrangement unsustainable. He argued that a for-profit arm allowed for a potential financial return and greater control over destiny, noting in internal communications that the company could not afford to lose billions on the partnership without a return.
The core of Musk's lawsuit alleges that Microsoft helped transform OpenAI into a moneymaking machine beyond his original intent, with claims that Altman and Greg Brockman violated special promises regarding the nonprofit status. Sutskever countered that OpenAI needed substantial funding to build advanced computing infrastructure, describing the choice as the difference between an ant and a cat if there was no funding.
As the trial enters its final stretch, OpenAI chairman Bret Taylor is scheduled to testify on Tuesday, providing a glowing review of Altman's leadership. Altman is expected to present his side of the story to jurors on Tuesday, following the extensive testimony from key figures including Sutskever and Nadella.
