Elon Musk Returns to Court in OpenAI Lawsuit
OAKLAND, California – Elon Musk is scheduled to take the witness stand again on Wednesday in a significant trial concerning his lawsuit against OpenAI. He’s accusing the organization of abandoning its mission to prioritize responsible AI development in favor of profit-seeking.
During his testimony on Tuesday, Musk, the wealthiest individual globally, criticized the 2019 move by OpenAI’s co-founder and CEO, Sam Altman, along with President Greg Brockman, to transition the nonprofit into a for-profit model.
Musk stated, “If we make it okay to loot a charity, the entire foundation of charitable giving in America will be destroyed.”
In defense, OpenAI has argued that creating a for-profit branch was necessary to acquire computational resources and attract leading scientists. Their legal representatives suggest that Musk’s true motivation stems from a desire to exert control over OpenAI and strengthen his own AI venture, xAI, which has not caught up with OpenAI in terms of user base.
JUDGE ISSUES WARNING TO MUSK
The trial is revealing the profound split between Musk and Altman, who once collaborated on advancing AI technology—an increasingly critical area of growth for the U.S. economy, but also a source of tension regarding job displacement.
They co-founded OpenAI in 2015 with the aim of being a responsible overseer of AI while also competing against firms like Google. Musk departed OpenAI in 2018 after investing around $38 million. Microsoft subsequently invested $10 billion in OpenAI in 2023.
On Wednesday, Musk, now 54, will continue being questioned by his attorney before facing cross-examination from OpenAI’s lawyers, who have suggested that Musk did not prioritize AI safety when he was involved with the company. They have pointed out that he referred to some employees working on AI safety as “jackasses.”
Before jury selection on Tuesday, U.S. District Judge Yvonne Gonzalez Rogers reprimanded Musk after OpenAI’s lawyers raised concerns about social media posts in which Musk called Altman “Scam Altman.” Musk, known for his outspoken nature, agreed to limit his social media interactions, and Altman also pledged to do the same.
Musk Claims $150 Billion in Damages
This trial occurs as OpenAI considers a potential initial public offering that might value the company at $1 trillion, according to reports. The organization is also experiencing heightened competition from other companies like Anthropic, alongside reports of missed internal performance benchmarks that impacted the tech-focused Nasdaq Composite.
Musk is pursuing $150 billion in damages from OpenAI and Microsoft, asserting that any awarded amount should go to OpenAI’s charitable division. He also insists that OpenAI revert to its nonprofit status, with Altman and Brockman removed from their positions and Altman dismissed from the board.
His allegations range from breach of charitable trust to unjust enrichment.
Currently, OpenAI operates as a public benefit corporation, entailing that both the nonprofit and other stakeholders, including Microsoft, have vested interests.
