Musk Testifies OpenAI 'Ditched' Nonprofit Mission as Trial Enters Fourth Day

Key facts

• Elon Musk sued OpenAI, Sam Altman, and Greg Brockman in 2024, alleging they abandoned the nonprofit mission.
• Musk donated roughly $38 million to seed OpenAI, which he claims was used for unauthorized commercial purposes.
• The trial is being overseen by Judge Yvonne Gonzalez Rogers in federal court in Oakland, California.
• OpenAI's attorney William Savitt cross-examined Musk about Microsoft's capped investments and Musk's involvement in structural negotiations.
• Musk testified that his for-profit companies Tesla, SpaceX, X, and Neuralink are all 'socially beneficial.'
• Musk stated it is 'partly' true that his AI startup xAI used OpenAI's models for distilling.
• Jared Birchall, who manages Musk's family office, testified about Musk's donations to OpenAI.
• OpenAI's lawyers are seeking to strike part of Birchall's testimony regarding xAI's bid to acquire OpenAI.

A Heated Exchange in Court

Elon Musk accused a lawyer for OpenAI of repeatedly trying to trick him during a tense cross-examination at a trial that may determine the future of the artificial intelligence company that built ChatGPT. William Savitt, representing OpenAI, told Musk his questions about the tax benefits of his $38 million in donations and the company's corporate structure were meant to be simple. 'Your questions are not simple. They're designed to trick me,' Musk, the CEO of Tesla and SpaceX, told a nine-person jury in Oakland, California, federal court.

The Core Allegations and Defense

Musk's lawsuit alleges OpenAI ditched its mission to build artificial intelligence for the public good, pivoting to create a for-profit entity in 2019 to enrich themselves. He is seeking billions of dollars and a change in management and direction for OpenAI. OpenAI has argued that Musk, who helped finance the company's early growth, is driven by a compulsion to control it and bitterness over its success after he left the board in 2018. The company also contends Musk pushed OpenAI to become a for-profit business, wanted to become CEO, and that safety was not a priority for him when he was with the company.

Musk's Testimony and Cross-Examination

During cross-examination, Savitt asked Musk about an email he sent Altman in 2015 suggesting OpenAI be structured as a for-profit corporation with a parallel non-profit, part of an effort to show Musk was supportive of a for-profit entity. Musk said the emails did not indicate his definitive position. 'Discussions and brainstorming are not a deal,' said Musk, wearing a dark suit over a white shirt and glancing at the jury occasionally as he spoke. Savitt also questioned Musk about Microsoft's capped investments in OpenAI, his involvement in negotiations about the company's structure, and whether he knew about the OpenAI nonprofit's recent initiatives. 'I don't know what's going on at OpenAI,' Musk testified.

The Role of xAI and Birchall's Testimony

Savitt also asked Musk about his competing artificial intelligence startup, xAI. While not the main focus of the case, Musk said it is 'partly' true that xAI used some of OpenAI's models to train its own models, a process known as distilling. Musk also suggested that xAI has used OpenAI's technology to help build the company. Once Musk wrapped up his testimony after roughly two hours of questioning on Thursday, his attorneys called Jared Birchall, who manages Musk's billions at his family office, as their next witness. Birchall testified about his knowledge of Musk's specific donations to OpenAI. OpenAI's lawyers are seeking to strike some of Birchall's testimony about xAI's bid to acquire OpenAI and any possible restrictions on Musk's donor-advised funds.

The Rupture Between Musk and Altman

The trial highlights the depth of the rupture between Musk and Altman. The pair co-founded OpenAI in 2015 to create a benevolent steward of the technology and fend off rivals such as Alphabet's Google. Musk testified he left OpenAI in 2018 to focus on Tesla and SpaceX. Seated in the courtroom audience, Altman and Brockman – who took notes with a red-ink pen on a yellow legal pad – listened intently as the exchanges between Musk and Savitt grew increasingly heated. Musk repeatedly asked Savitt to stop interrupting him. Musk answered one of Savitt's questions by saying, 'You tell me.' Savitt responded, 'I get to ask the questions, Mr. Musk.'

What Comes Next

Judge Yvonne Gonzalez Rogers is weighing a request to strike some of the testimony from Jared Birchall. The trial will resume on Monday. Musk is expected to return to the stand for more cross-examination. The outcome could reshape the future of AI development, as the case questions the fundamental mission of one of the world's leading AI companies.

The bottom line

• Musk's lawsuit claims OpenAI abandoned its nonprofit mission, seeking billions in damages and management changes.
• OpenAI argues Musk sought control and is bitter over its success, pointing to his own AI startup xAI.
• The trial has featured heated exchanges, with Musk accusing OpenAI's lawyer of trickery.
• Key evidence includes Musk's 2015 email suggesting a for-profit structure and his $38 million donation.
• Jared Birchall's testimony about Musk's donations and xAI's acquisition bid is under legal challenge.
• The case could set a precedent for the governance of AI companies and their charitable obligations.