Elon Musk Says OpenAI Betrayed Him, Clashes With Company's Attorney
Source: Slashdot
Testimony Overview
An anonymous reader quoted a report from the San Francisco Chronicle detailing Elon Musk’s second day of testimony in Oakland federal court against OpenAI. Musk described his shift from an enthusiastic supporter of the nonprofit to feeling betrayed, and he repeatedly clashed with OpenAI’s attorney over what he deemed unfair questions.
“Phase one” – support
“Phase two” – doubts
“Phase three” – “I’m sure they’re looting the nonprofit. We’re currently in phase three.”
Musk admitted he was a “fool” for providing $38 million of essentially free funding that helped create a company now valued at $800 billion, in which he holds no equity stake.
Musk’s Allegations
- Breach of charitable trust and unjust enrichment – Musk argues OpenAI abandoned its original nonprofit mission to benefit humanity and instead pursued financial gain.
- Seeking remedies – He wants Sam Altman removed from OpenAI’s board and is pursuing upwards of $134 billion in damages, which he says would be used to fund the nonprofit mission.
During cross‑examination, Musk was pressed on the amount he contributed. Attorney William Savitt asked whether the figure was $38 million (the amount Musk eventually affirmed) or the $100 million he later claimed to have invested on X. Musk also asserted that he contributed his reputation and even the idea for the company’s name.
“Your questions are not simple. They’re designed to trick me, essentially,” Musk said, comparing Savitt’s line of questioning to asking, “have you stopped beating your wife?” Judge Yvonne Gonzalez Rogers intervened, after which Musk answered “yes” to the $38 million investment amount.
OpenAI’s Defense
William Savitt, representing OpenAI, argued that the nonprofit entity still controls the for‑profit public‑benefit corporation and remains one of the world’s best‑funded nonprofits. He maintained that the structure has not fundamentally changed.
Key Exchanges and Context
- Growing doubts – By late 2022, Musk said he began to suspect OpenAI was betraying its promise.
- Microsoft investment – Musk cited Microsoft’s multi‑billion‑dollar investment as a turning point, describing it as a “bait and switch” because a nonprofit does not have a valuation.
- Text exchange with Sam Altman (Oct 23 2022) – Musk texted Altman that he was “disturbed” by OpenAI’s $20 billion valuation after the Microsoft deal. Altman replied, “I agree this feels bad,” noting that OpenAI had previously offered equity, which Musk declined.
- Shivon Zilis – Musk testified that former board member Shivon Zilis, who lives with him and is the mother of four of his children, served as a senior advisor at Neuralink. He denied that she shared sensitive OpenAI information, stating he encouraged her to stay close to OpenAI to “keep info flowing” and defended recruiting OpenAI employees to Neuralink as a matter of free‑market choice: “It’s a free country.”