Musk accuses Altman of stealing a charity as courtroom battle begins

Source: BBC Technology

Trial overview

Musk, wearing a dark suit and tie, was asked by one of his lawyers what the lawsuit was about when he took the stand.

“It’s actually very simple. It’s not okay to steal a charity… If it’s okay to loot a charity, the entire foundation of charitable giving will be destroyed.”

An OpenAI lawyer said the lawsuit was motivated by Musk seeking to kneecap a “competitor.” The judge warned both Musk and Altman against using their platforms to influence the trial.

“We’re here because Mr Musk didn’t get his way at OpenAI,” said OpenAI lawyer William Savitt. “Because he’s a competitor, Mr Musk will do anything to attack OpenAI.”

Musk’s attorney, Steven Molo, reminded the nine jurors in Oakland to set aside personal opinions of the two Silicon Valley billionaires and former friends.

“You all took an oath to put personal opinions aside,” he said. “I know you will honour that oath.”

Molo noted that Musk became more involved in AI as the technology advanced rapidly, growing concerned that “the government was not stepping up” to regulate it. He cited a 2015 meeting with then‑President Barack Obama and emphasized that Musk believed AI “wasn’t a vehicle for people to get rich.”

Molo described Musk’s involvement in OpenAI, to which he had donated $38 million (£28 million) over several years while it operated as a non‑profit.

“Without Elon Musk, there would be no OpenAI. Pure and simple,” he asserted.

Musk’s claims

Musk objects to OpenAI’s decision to open a commercial arm in 2018, years before the debut of ChatGPT, which launched the commercial AI market. In his opening arguments, Molo said that OpenAI CEO Sam Altman and co‑founder Greg Brockman “stole a charity.”

Musk is seeking billions of dollars in what his lawyers call “wrongful gains,” which he wants used to fund OpenAI’s non‑profit arm. He also wants a shake‑up at the company, including the ousting of Altman. The claims include:

• Breach of charitable trust
• Unjust enrichment

OpenAI’s lawyer argued that Musk used his investment to “bully” other founders and had wanted to merge the company with Tesla, which he also owns.

“The other founders refused to turn the keys of artificial intelligence over to one person,” Savitt continued. “When they refused to let OpenAI be absorbed, Musk ‘took his marbles and went home.’”

OpenAI’s response

OpenAI contends that Musk never cared whether the organization remained a non‑profit and that his motivations stem from jealousy and regret for walking away from the company. The firm accuses Musk of trying to derail a key rival as the race toward artificial general intelligence (AGI) accelerates.

OpenAI also argues that Musk understood the decision to open a commercial arm and left the company only after failing to become its CEO. Altman is expected to testify during the trial.

Court proceedings

Judge Yvonne Gonzalez Rogers decided against imposing a gag order, allowing participants to discuss the trial outside the courtroom. On the day the jury was selected, Musk took to X (formerly Twitter) and referred to the defendant as “Scam Altman.” The judge asked Musk for a “clean slate” moving forward and urged him to “control your propensity to use social media to make things worse outside this courtroom.” Altman and Brockman agreed to the same restraint.

Potential outcomes

A verdict is expected to be announced in late May. If Musk’s claims are upheld, the court could order the return of funds to OpenAI’s non‑profit arm and potentially enforce governance changes at the company. Conversely, a ruling in favor of OpenAI would reinforce the legitimacy of its commercial activities and diminish Musk’s influence over the organization.