Elon Musk faced a contentious cross-examination on Thursday, asserting he was assured by OpenAI co-founder Sam Altman that the artificial intelligence company would remain a nonprofit, even as early discussions about a for-profit model were underway. The testimony came during the third day of a high-stakes trial that could reshape the future of the AI giant.
The world's wealthiest individual is suing OpenAI, its co-founder and CEO Sam Altman, and President Greg Brockman. Musk alleges they secured his $38 million in donations and personal assistance by promising to establish a nonprofit dedicated to the safe development of AI, only to later pivot to a for-profit entity for personal enrichment.
William Savitt, legal counsel for OpenAI, Altman, and Brockman, pressed Musk on whether he had reviewed a term sheet forwarded by Altman on August 31, 2017, detailing OpenAI's transition from a nonprofit to a for-profit structure overseen by a nonprofit. "My testimony is I didn't read the fine print, just the headline," Musk stated, dressed in a dark suit and tie.
The ongoing trial in a California courtroom holds significant implications for OpenAI, the company behind the widely adopted ChatGPT chatbot. OpenAI has raised billions from investors and is reportedly eyeing a potential trillion-dollar initial public offering. Musk is seeking fundamental changes to the company's governance and $150 billion in damages.
OpenAI has countered that Musk, CEO of Tesla and SpaceX, is motivated by a compulsion to control the company and harbors resentment over its success since his departure from its board in 2018. The company also claims Musk did not prioritize safety issues during his tenure and is attempting to bolster his own AI venture, xAI, a SpaceX unit that currently lags behind OpenAI in user adoption.
Musk, at times, expressed frustration with Savitt's questioning. "Few answers are going to be complete, especially when you cut me off all the time," he remarked. U.S. District Judge Yvonne Gonzalez Rogers later admonished Savitt for interrupting Musk but dismissed Musk's complaints that the lawyer was leading the questioning.
When asked why he did not sue OpenAI sooner and how he failed to realize its shift to a for-profit entity, Savitt presented emails from other OpenAI founders discussing the possibility of making its technology closed-source or monetizing it. Musk reiterated, "I was reassured by Sam Altman and others that OpenAI would continue as a nonprofit." He further told the court that the for-profit company now controls OpenAI's assets, stating, "The for-profit is overwhelmingly where the value is. The for-profit has taken the super majority of the value of the nonprofit." Under questioning, Musk also confirmed his company xAI utilized OpenAI to train its own models, adding, "It is standard practice to use other AIs to validate your AI."
Altman and Brockman were present in the courtroom for much of Musk's testimony, observing intently. After more than two hours of questioning, Musk was dismissed, and his top aide, Jared Birchall, took the stand.
OpenAI, established in 2015, has evolved from a nonprofit research lab operating out of Brockman's apartment into a company valued at over $850 billion, with plans for a potential IPO. Musk is seeking $150 billion in damages from OpenAI and Microsoft, one of its largest investors, with proceeds intended for OpenAI's charitable arm. He also demands that OpenAI revert to its nonprofit status and that Altman and Brockman be removed from their executive positions and Altman from the board.
Musk's lawsuit accuses OpenAI of breach of charitable trust and unjust enrichment, while Microsoft faces allegations of aiding and abetting the breach of charitable trust. "I don't think you should turn a nonprofit into a for-profit," Musk stated in response to Savitt's questions. "There's nothing wrong with having a for-profit organization, you just can't steal a charity." OpenAI has defended its creation of a for-profit entity as a necessary step to attract private investments for computing power and to recruit top scientists.
Musk has accused OpenAI of abandoning its foundational mission to develop artificial intelligence for the benefit of humanity. Steven Molo, a lawyer for Musk, argued in court that expert testimony regarding AI's potential to end humankind should be admissible, asserting, "Extinction risk is a real problem. This is a real risk. We all could die." The judge, however, rejected the testimony, remarking, "I think it's ironic that your client, despite these risks, is creating a company that's in the exact same space," referring to Musk's xAI venture. She concluded, "This is not a trial on the safety risks of artificial intelligence."
The trial, which commenced on Monday, is expected to continue for several weeks. Following Birchall, the next witnesses anticipated are Brockman and AI safety expert Stuart Russell.
