The first week of the Musk v. Altman trial concluded with Elon Musk’s extensive testimony, where he accused OpenAI leaders of attempting to “steal a charity.” Musk alleges that the AI startup’s founders betrayed promises to keep it a nonprofit, a claim OpenAI disputes.
The trial, which could significantly impact the future of AI development, is ongoing, with key figures like Sam Altman and Greg Brockman expected to testify soon. Judge Yvonne Gonzalez Rogers is presiding over the case, which has been divided into liability and remedies phases.
The inaugural week of the high-stakes Musk v. Altman trial has drawn to a close, with proceedings set to reconvene next week. At the heart of the legal battle, Tesla and SpaceX CEO Elon Musk spent three days on the stand, steadfastly asserting his core argument: that OpenAI's leaders, Sam Altman and Greg Brockman, attempted to "steal a charity." This claim forms the crux of the lawsuit Musk filed in 2024, alleging a betrayal of the initial promises to maintain the artificial intelligence startup as a nonprofit entity.
Musk, a co-founder of OpenAI in 2015, contends that approximately $38 million he contributed was diverted for unauthorized commercial ventures. OpenAI, now boasting a valuation exceeding $850 billion, has dismissed these accusations as unfounded. Musk's departure from OpenAI's board in 2018 and his subsequent launch of a competing AI company, xAI, which later merged with SpaceX, precede this legal confrontation.
The trial commenced with jury selection on Monday, followed by opening arguments on Tuesday. Musk's extensive testimony, spanning three days, was the week's main event, concluding on Thursday. The court will observe a recess on Friday, with Judge Yvonne Gonzalez Rogers presiding when sessions resume next week. Altman and Brockman are slated to testify later this month.
The narrative surrounding OpenAI's shift towards commercialization intensified after Musk's exit, particularly with the establishment of a for-profit subsidiary in 2018 and the subsequent surge in business following ChatGPT's launch in late 2022. A significant $10 billion equity investment from Microsoft further bolstered its commercial trajectory.
Musk acknowledged a potential for-profit arm within OpenAI but argued it became a case of "the tail wagging the dog." He repeatedly accused Altman and Brockman of self-enrichment, leveraging the public perception of a nonprofit while pursuing private gain. "What you can't do is have your cake and eat it too," Musk stated.
He elaborated that OpenAI was conceived as a counterbalance to Google, which he perceived as inadequately focused on AI safety. Musk recalled a dispute with Google co-founder Larry Page on this issue, during which Page allegedly called him a "speciesist for being pro-human." Musk asserted that OpenAI's very existence was due to his foundational contributions, including the concept, name, recruitment of key personnel, and initial funding.
During cross-examination, Musk frequently engaged in sharp exchanges with OpenAI's lead counsel, William Savitt, accusing him of deceitful and misleading questioning. Savitt probed Musk's involvement in establishing OpenAI's for-profit arm and his awareness of its recent activities. He also questioned Musk about his competing AI company, xAI, contrasting Musk's $250 billion valuation of xAI in the SpaceX merger with his portrayal of it as a smaller entity with minimal market share.
Musk admitted that xAI utilized some of OpenAI's technology for model training, a process known as distilling, but downplayed the reliance, calling it a "standard practice to use other AIs to validate your AI." He stated that while he grew uncomfortable with Altman and Brockman's conduct around 2017, he did not believe he had grounds for a lawsuit until much later, adding, "I would've filed a lawsuit sooner if I thought they'd stolen the charity sooner."
In a January filing, Musk's legal team sought up to $134 billion in damages from OpenAI and Microsoft, advocating for the return of any "ill-gotten gains" to OpenAI's foundation. Musk is also seeking the removal of Altman and Brockman from their positions and the reversal of OpenAI's for-profit conversion.
The trial unfolds as both Musk and Altman pursue massive public offerings for their respective companies. SpaceX has confidentially filed with the SEC for an IPO that could value the company in the trillions, while Musk's team is reportedly set to launch its roadshow in mid-June.
Following Musk's testimony, his lawyers called Jared Birchall, manager of Musk's family office, as their next witness. Birchall testified about Musk's specific donations to OpenAI and his knowledge of Musk's substantial bid to acquire OpenAI in February 2025, an offer Altman promptly rejected.
Judge Gonzalez Rogers has divided the trial into two phases: liability, to determine if wrongdoing occurred, and remedies, to address outcomes. The liability phase is expected to conclude by May 21, with the jury's verdict being advisory, leaving the final decision to the judge.
