Judge questions witness recollection of $97.4bn xAI bid in Musk v Altman trial
During the Musk v Altman proceedings, Jared Birchall testified that a coalition led by Elon Musk submitted a massive bid for OpenAI's non-profit assets in February 2025. The judge subsequently warned counsel against coaching the witness and indicated she would rule on the admissibility of the testimony the following day.
Jared Birchall, the money manager for Elon Musk, provided testimony during the Musk v Altman trial regarding a significant financial transaction involving OpenAI. Birchall stated that a coalition led by Musk submitted a $97.4 billion bid for the non-profit assets of OpenAI in February 2025. According to the witness, the purpose of this bid was to ensure the proper valuation of the assets during the company's restructuring process.
Birchall explained that the negotiation appeared to involve Sam Altman on both sides of the table, representing both the for-profit and non-profit arms of the organisation. He suggested the bid was necessary to counter potential undervaluation of the non-profit assets. However, when this specific detail was mentioned, defence counsel objected, and the portion of the testimony was struck from the record.
Following the objection, the jury was dismissed while Judge Yvonne Gonzalez Rogers questioned Birchall directly. The judge expressed significant doubt regarding the witness's recollection of the deal, noting the lack of documentation and the sheer scale of the funds involved. She stated she was struggling to understand how a witness could have conversations to raise such a large sum without having any general sense of the transaction.
The judge also highlighted that business deals are not privileged communications, contrasting this with previous objections made by counsel regarding privileged information during depositions. She warned the plaintiff's counsel against coaching the witness, a move that appeared to have been facilitated by a note passed from one lawyer to another during the direct examination.
Birchall claimed he did not recall discussing the timing of the bid letter with Musk or other principals of the Musk organisation. He admitted to speaking with consortium members but stated he was not involved in discussions regarding when the bid letter should be sent. He further noted he was unaware if xAI knew that Marc Toberoff represented other bidders within the consortium.
The judge indicated she would rule on the admissibility of the testimony the following day. This development comes as the trial continues to focus on disputes regarding OpenAI's governance and restructuring, with the potential for further scrutiny into the financial dealings surrounding the artificial intelligence firm.
