Musk Testifies Against OpenAI Amidst Donor Dispute and Legal Proceedings
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Last week, Musk took the stand, alleging that OpenAI CEO Sam Altman and president Greg Brockman had deceived him into donating $38 million to the company. He claimed that they’d promised to maintain it as a nonprofit dedicated to developing AI for the benefit of humanity, only to later accept billions of dollars of investment from Microsoft and restructure the company to operate a for-profit subsidiary.
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WiredMusk’s core claim in this lawsuit is that Altman and OpenAI president Greg Brockman effectively stole a nonprofit, using the $38 million Musk invested to create a private company worth more than $800 billion today. On Wednesday, lawyers for Musk showed video depositions of former OpenAI CTO Mira Murati and former OpenAI board member Helen Toner, to raise concerns over Altman’s alleged history of deceit.
The VergeAltman follows on the heels of OpenAI’s president, Microsoft’s CEO, and others. Altman, alongside OpenAI president Greg Brockman, is a primary defendant in the trial brought by Musk. Altman, Brockman, and Musk were all part of the initial founding team at OpenAI, with Musk investing up to $38 million in the ChatGPT-maker’s early days. But the relationship between Musk and other OpenAI founders eventually soured, and Musk stepped away from the company, later going on to found his own direct competitor, xAI. In recent years, Musk and Altman have traded barbs and made a slew of allegations against each other, driven largely by Musk’s handful of legal actions against OpenAI, many of which have since been dropped or dismissed.
CNETMusk's proposed case is linked to his past as a co-founder of OpenAI, which was founded as a nonprofit in 2015. Musk alleged that Altman used his financial resources to expand OpenAI's operations before turning the organization into a commercial entity.
TechCrunchThe focus on his firing is not just about questioning Altman's credibility. One key question of the trial is whether OpenAI's structure lives up to its mission, and specifically whether the non-profit board can exercise true control over the for-profit. From the point of view of Musk's lawyers, the 2023 episode offers evidence that Altman's influence over the company exceeded that of its board of directors.
GizmodoAccording to The Verge, Zilis’ testimony included emails from 2017 and 2018. At one point, she mentioned that it was discussed that OpenAI “switch to for profit in next couple of weeks (woah fast!).” That is apparently an idea that Musk was involved with batting around. In another email, Zilis apparently offered Musk some ideas to kickstart Tesla’s AI efforts. “One was making OpenAI a public benefit corporation subsidiary of Tesla. One was getting Altman as an ‘anchor’ for TeslaAI,” she wrote, which doesn’t seem like the kind of thing someone who is insistent on a company remaining a non-profit would consider.
Ars TechnicaMusk sued OpenAI in 2024 for making a “fool” out of him after Musk donated $38 million to kick-start OpenAI as a nonprofit, only to later be blindsided when OpenAI created a for-profit arm that he felt gutted funding for the charity while enriching executives like Sam Altman and Greg Brockman.
EngadgetEven before the trial began, Musk faced longshot odds at securing the remedies he sought. The billionaire sought to undo OpenAI's for-profit conversion and force the removal of Sam Altman and Greg Brockman from their positions on top of the company. There might have been a point early in OpenAI's negotiations with the Attorneys General of California and Delaware where Musk might have had a chance to get his way, but it was clear Judge Gonzales Rogers was deeply hesitant to undo the work of public officials. When Musk filed a request for a preliminary injunction to stop the conversion, the judge said the request was "extraordinary and rarely granted." Developing...
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Plus: China has blocked Meta’s $2 billion acquisition of AI startup Manus. The Download: introducing the 10 Things That Matter in AI Right Now
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“The 2023 deal was different,” Steven Molo, one of Musk’s lawyers, hammered home during his closing argument.
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Deep Dive Artificial intelligence OpenAI is throwing everything into building a fully automated researcher
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Representatives for Musk and OpenAI did not immediately respond to a request for comment about the ass.
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CNETRepresentatives from OpenAI and the law firm MoloLamken, which represented Musk, didn't immediately respond to a request for comment.
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It just seems like a lot of people who've worked with Altman don't trust him. And he's acknowledged this a little bit, because he'll talk about the fact that he recognizes he's been conflict averse, telling people what they want to hear, and he's trying to work on that.
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GizmodoSam Altman While he was routinely depicted as untrustworthy, Altman benefited a bit from the fact that not that many people trusted him in the first place. Can you take reputational damage when your reputation is simply confirmed by everyone’s testimony?
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“It's hard to see how the public interest is being protected by either of these parties, and that is really what is ultimately at stake in a case about a nonprofit,” says Jill Horwitz, a Northwestern University law professor with expertise in nonprofits and innovation, who listened to the closing arguments. “The public interest in the nonprofit is at risk no matter who wins.”
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MIT Technology Review“The public interest in the nonprofit loses, no matter who wins or loses this trial,” says Horwitz.
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A lawyer for Sam Altman’s AI behemoth, Bradley Wilson, approached US district judge Yvonne Gonzalez Rogers and handed her a small gold statue with a white stone base. It depicted the rear end of a donkey—with two legs, a butt, and a tail—and was inscribed with the message, “Never stop being a jackass for safety.”
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MIT Technology ReviewOn the last day of testimony, OpenAI’s lawyer Bradley Wilson handed the judge a small golden trophy of a donkey’s ass, inscribed: “Never stop being a jackass for safety.”
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7 details only one outlet reported
Independent claims that didn't surface elsewhere in our corpus. Treat as supplementary — not corroborated across outlets.
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01 MIT Technology Review Inside Anduril and Meta’s quest to make smart glasses for warfare The defense-tech company Anduril has shared new details about the augmented-reality headset for the military it’s prototyping with Meta, including a vision for ordering drone strikes via eye-tracking and voice commands.
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02 CNET (Disclosure: Ziff Davis, CNET's parent company, in 2025 filed a lawsuit against OpenAI, alleging it infringed Ziff Davis copyrights in training and operating its AI systems.)
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03 The Verge In a strictly legal sense, three weeks of testimony added up to nothing. But the trial offered a more damning broader takeaway: Almost nobody in this saga seems worth trusting. Some of the most powerful people in tech seem temperamentally incapable of dealing with each other honestly. And if that’s true, it raises a bigger question: Why are they in control of a trillion-dollar industry that’s set to upend people’s lives?
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04 Ars Technica She thanked the jury and reminded them that they can talk to “anyone about anything” once they feel comfortable discussing the case, the NYT reported.
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05 TechCrunch “There was a substantial amount of evidence to support the jury’s finding, which is why I was prepared to dismiss it on the spot,” Judge Yvonne Gonzalez Rogers said after the verdict was delivered.
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06 Gizmodo Since there are no real winners here, how about a power ranking of who lost the least?
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07 Wired OpenAI requested to present the physical object during Achiam’s testimony on Wednesday, arguing that it adds to their case. While Musk’s team said the statue was irrelevant, Judge Gonzalez Rogers said she will consider allowing it when it’s referenced to corroborate the story. However, she seemed less than thrilled about accepting it as official evidence, which would put it in the court’s possession. “I don’t want it,” she said.
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Sources (8)
- techcrunch
- gizmodo
- verge
- cnet
- wired
- arstechnica
- engadget
- mittech