OpenAI CEO Sam Altman faces credibility scrutiny in federal court governance trial
As the trial examines whether OpenAI’s non-profit board retains effective control over its for-profit subsidiary, Sam Altman’s testimony highlights tensions between his past disclosures and current leadership claims.
Sam Altman, chief executive officer of OpenAI, testified in a California federal court on Tuesday, enduring a rigorous cross-examination from attorneys representing Elon Musk. The proceedings focus on whether OpenAI’s non-profit board maintains effective control over its for-profit subsidiary, with Altman’s personal credibility emerging as a pivotal factor for Judge Yvonne Gonzalez Rogers and the jury.
Musk’s lead attorney, Steve Molo, challenged Altman regarding discrepancies in his 2023 testimony before the US Senate. During that congressional hearing, Altman stated he held no equity in OpenAI, a claim Molo contested by highlighting Altman’s economic exposure through a limited partner position in the Y Combinator fund. Altman acknowledged the omission, describing himself as a passive owner and noting that the nature of such venture fund investments was generally understood.
Former OpenAI board members Helen Toner and Tasha McCauley provided sworn testimony accusing Altman of misleading the organisation. McCauley characterised the internal environment as suffering from a toxic culture of lying, while Toner supported the assertion that Altman had not been candid with the board. These accounts were bolstered by similar accusations from Musk and OpenAI co-founder Ilya Sutskever.
Conversely, witnesses from OpenAI and Microsoft defended the current governance structure and Altman’s leadership. Microsoft CEO Satya Nadella dismissed Altman’s 2023 dismissal as amateurish, while board chair Bret Taylor stated he found Altman forthright and saw no justification for his termination. Taylor also noted that Altman was rehired because his departure would have ended OpenAI as a going concern, with most employees intending to follow him.
Dr Zico Kolter, an OpenAI board member focused on artificial intelligence safety, testified that no interference with safety work had occurred since he joined in 2024. When asked directly about his trustworthiness, Altman maintained his position, stating, I believe I am an honest and trustworthy businessperson, while confirming he had no plans to resign as chief executive.
