Musk Loses Temper in Court as OpenAI Trial Reveals Emails and Power Struggles

Key facts

• Elon Musk co-founded OpenAI in 2015 as a non-profit.
• Musk is suing Sam Altman and OpenAI for breach of contract, seeking $134bn in damages.
• OpenAI's attorney William Savitt grilled Musk for hours, highlighting inconsistencies in his testimony.
• Judge Yvonne Gonzalez Rogers struck Musk's repeated phrase 'you can't just steal a charity' from the record.
• Musk's lieutenant Jared Birchall testified he sent about $38m in donations to OpenAI from 2016 to 2020.
• Musk attempted to merge Tesla and OpenAI in 2018 after failing to gain control of the board.
• Musk hired OpenAI's second-best engineer Andrej Karpathy to Tesla in 2017.
• The trial is expected to last three weeks, with Sam Altman scheduled to testify.

A Heated Day in Court

Elon Musk’s court battle against Sam Altman continued on Thursday with a day of contentious exchanges as OpenAI’s lead attorney, William Savitt, subjected the Tesla CEO to relentless cross-examination. Musk, visibly rattled, bristled at questions about his knowledge of OpenAI’s for-profit structure and his own AI company, xAI. At one point, Judge Yvonne Gonzalez Rogers intervened, striking Musk’s repeated assertion that “you can’t just steal a charity” from the record, saying, “That portion is stricken, we’ve heard it many times.” The judge later remarked that Musk was “at times difficult,” adding, “Part of management from my perspective is just to get through testimony.” During a break, she told Musk and his lawyers, “We are not going to talk much about extinction in this case. They got it, that’s enough.”

The Core Dispute: Non-Profit Promise vs. For-Profit Reality

Musk, who co-founded OpenAI in 2015, argues that Altman, OpenAI, and its president Greg Brockman broke a foundational agreement when they shifted the company from a non-profit intent on bettering humanity into a for-profit structure. He claims they unjustly enriched themselves and should be removed from the company. Musk is also seeking the undoing of the for-profit conversion and $134bn in damages to be redirected to OpenAI’s non-profit arm. OpenAI rejects the allegations, asserting that Musk was always aware of plans for a for-profit entity. The AI firm’s attorneys have stated Musk is “motivated by jealousy” of OpenAI’s success after he left the company in 2018 following a failed attempt to take control. OpenAI emphasizes that it is still overseen by a non-profit.

Musk’s Testimony: Defiance and Defensiveness

During his direct testimony, Musk painted a heroic picture of himself, declaring, “I don’t lose my temper” and “I don’t yell at people.” He admitted to possibly calling someone a “jackass” but only in the spirit of saying, “don’t be a jackass.” However, under cross-examination, Savitt baited him into being petty and irritable. Musk refused to answer yes-or-no questions, occasionally “forgot” things he had testified to earlier, and scolded Savitt. One jury member was seen rubbing her head during a testy exchange. When asked why he did not set up xAI as a non-profit, Musk, in a stern voice, said, “I started OpenAI as a non-profit.” He explained that OpenAI converted to for-profit only in recent years. “That is the entire basis for this whole lawsuit,” Musk said. “Why would I start another non-profit when I already started a non-profit?”

Evidence Reveals Power Struggles and Failed Merger Attempt

Witness testimony and evidence have unveiled private emails, text messages, and diary entries surrounding OpenAI’s formation. The documents show that Musk initially wanted four board seats and 51 percent of shares, with other co-founders getting three seats collectively. When he did not get what he wanted, he pulled the plug on his funding commitment. In 2017, he hired OpenAI’s second-best engineer, Andrej Karpathy, to Tesla without trying to keep him at OpenAI, despite his fiduciary duty as a board member. By 2018, Musk was declaring that OpenAI was on “a path of certain failure” in emails to Ilya Sutskever and Greg Brockman. His proposed solution was to merge Tesla and OpenAI. “In my and Andrej’s opinion, Tesla is the only path that could even hope to hold a candle to Google,” Musk said. The plan never materialized, and Musk resigned from OpenAI’s board that year.

Financial Contributions and the Role of Jared Birchall

After Musk’s testimony wrapped, his longtime top lieutenant, Jared Birchall, took the stand. Birchall, who is CEO of Neuralink and runs Musk’s family office, testified that he started working for the billionaire in 2016 and oversees Musk’s assets and resources. He said he was in charge of sending Musk’s donations to OpenAI, but all decision-making was done by Musk. Birchall stated that he sent approximately 60 contributions, amounting to roughly $38m, to OpenAI from 2016 to 2020.

The Stakes and What Comes Next

The trial, which will last three weeks, has already featured testimony from some of the tech industry’s most powerful players. Sam Altman is scheduled to testify later. The outcome could reshape the governance of OpenAI and set a precedent for how AI companies balance profit motives with their founding missions. Musk’s lawsuit seeks not only damages but also the undoing of the for-profit conversion, which would have far-reaching implications for the company’s investors and partners. As the trial progresses, the jury will have to weigh conflicting accounts of OpenAI’s founding agreements and the motivations behind Musk’s departure. The evidence so far paints a picture of a founder who wanted control, failed to get it, and then tried to dismantle the company he helped create.

A Bitter Feud Laid Bare

The courtroom drama has exposed the deep personal animosity between Musk and Altman, two of the most influential figures in artificial intelligence. Musk’s combative demeanor and inconsistent testimony may have damaged his credibility, while OpenAI’s narrative of a jealous founder who abandoned the company gains traction. The judge’s interventions and the jury’s reactions suggest that Musk’s performance has not been well received. Regardless of the verdict, the trial has already provided an unprecedented look into the inner workings of OpenAI and the high-stakes power struggles that shaped its evolution. The public now has a clearer understanding of how a non-profit dedicated to benefiting humanity transformed into a for-profit giant, and the role that personal ambition played in that transformation.

The bottom line

• Musk’s lawsuit claims OpenAI broke a non-profit agreement; OpenAI says Musk knew of for-profit plans and left after failing to gain control.
• Cross-examination revealed Musk’s inconsistent testimony and temper, which may hurt his case with the jury.
• Evidence shows Musk attempted to merge Tesla and OpenAI in 2018 after his bid for majority control failed.
• Musk’s lieutenant Jared Birchall testified to sending about $38m in donations to OpenAI from 2016 to 2020, with Musk making all decisions.
• The trial is expected to last three weeks, with Sam Altman set to testify, and could have major implications for OpenAI’s governance.
• The case has laid bare the personal feud between Musk and Altman, offering a rare inside look at the creation and transformation of OpenAI.