Sam Altman testifies in landmark OpenAI trial, says Musk wanted control of company

Overview

OpenAI co-founder and CEO Sam Altman testified in a high-stakes trial brought by Elon Musk, who alleges Altman and OpenAI president Greg Brockman betrayed the founding mission by turning a nonprofit into a for-profit venture. Altman denied that Musk ever opposed the for-profit conversion and said Musk had wanted majority control of the company. OpenAI counters that Musk seeks revenge as a competitor through his company xAI.

Key Takeaways

Elon Musk is suing OpenAI and its leaders, alleging they betrayed the founding mission to serve humanity by turning a nonprofit into a money-making venture.
Musk wants Altman replaced as CEO and up to $180 billion in damages paid from the for-profit arm to the nonprofit arm.
Altman denied Musk ever opposed the for-profit conversion, saying Quite the opposite.
Altman testified that Musk initially wanted 90% of the equity and always sought a majority stake, justified by being the most well-known.
Altman said Musk resigned in 2018 after losing faith the company would become a serious counterweight to Google's DeepMind.
Under cross-examination, Altman denied fostering a toxic culture of lying and said he believes he is an honest and trustworthy businessperson.

Stats & Key Facts

#Up to $180 billion in damages sought
#90% of equity that Altman said Musk initially wanted
#Musk resigned in 2018
#Altman owns about a third of Helion Energy, worth around $1.6 billion
#Altman was removed from the OpenAI board in 2023

Sam Altman testifies in landmark OpenAI trial, says Musk wanted control of company

What the lawsuit claims

Musk's case targets OpenAI's shift from nonprofit to for-profit.

›Musk alleges Altman and OpenAI president Greg Brockman betrayed the founding mission to serve humanity.
›He wants Altman replaced as CEO.
›He seeks up to $180 billion in damages, to be paid from the for-profit arm to the nonprofit arm.

The trial is described as high-stakes and could determine the future of OpenAI. OpenAI has responded that Musk seeks revenge in a market where he has become a competitor through his company, xAI.

Altman's account of Musk's demands

›Altman denied Musk ever opposed turning OpenAI into a for-profit company, saying Quite the opposite.
›Altman said an early number Musk threw out was that he should have 90% of the equity to start.
›He said the figure softened but always remained a majority.
›Altman said Musk's argument for the large stake was simply that he was the most well-known.

Altman also testified he was made uncomfortable when Musk told him that after his death he might pass the company on to his children.

Claims about company culture

Altman criticized Musk's management approach.

›Altman said Musk did huge damage to the culture by ranking engineers and scientists.
›He argued a research lab needs psychological safety and long periods of time to pursue an idea.
›He said constant pressure to show results, with firing for short periods of weak output, did not fit the research they went on to do.

Musk's 2018 departure

›Altman said Musk resigned in 2018 after losing faith the company would succeed.
›Evidence presented in court included an email saying OpenAI would never be a serious counterweight to Google's DeepMind.

Cross-examination

Musk's lawyer Steven Molo questioned Altman on honesty and conflicts.

›Altman denied fostering a toxic culture of lying, an accusation from a former board member and several former officials.
›He said he believes he is an honest and trustworthy businessperson and denied misleading anyone.
›On being removed from the board in 2023 over not being candid, he cited misunderstandings and a breakdown of trust rather than an attempt to deceive.

Molo also pressed Altman on outside stakes, including about a third of nuclear-energy startup Helion Energy, worth around $1.6 billion, which is to provide electricity to power OpenAI's data centers. Molo raised a potential conflict of interest tied to Altman's investment in Reddit and other ventures under investigation by a House Oversight Committee.

Frequently Asked Questions

What is Elon Musk seeking in the lawsuit?

He wants Sam Altman replaced as CEO and up to $180 billion in damages paid from the for-profit arm to the nonprofit arm of OpenAI.

Did Altman say Musk opposed the for-profit conversion?

No. Altman denied it outright, saying Quite the opposite, and testified that Musk had wanted majority control.

Why did Musk resign in 2018, according to Altman?

Altman said Musk resigned because he had lost faith the company would succeed, with an email saying it would never be a serious counterweight to Google's DeepMind.

What conflicts of interest were raised at trial?

Musk's lawyer raised Altman's roughly one-third stake in Helion Energy, worth around $1.6 billion, and his investment in Reddit, among ventures under investigation by a House Oversight Committee.

How did Altman respond to accusations of a toxic culture?

He denied fostering a toxic culture of lying and said he believes he is an honest and trustworthy businessperson who did not mislead anyone.

Altman's testimony framed the dispute as Musk seeking control and equity rather than a betrayal of OpenAI's mission, while Musk's side pressed on honesty and conflicts of interest.