Musk says basis of charitable giving at stake in OpenAI lawsuit

Source: BBC Technology

Elon Musk vs. Sam Altman: OpenAI Lawsuit Overview

A trial in Oakland, California pits two OpenAI founders—Sam Altman and Elon Musk—against each other. The case centers on allegations that Musk “stole a charity” by seeking to dismantle OpenAI’s nonprofit mission after the company created a commercial arm in 2018.

Key Statements from the Court

• Musk’s opening remark:

  “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.”

• OpenAI’s counsel, William Savitt:

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

• Musk’s lawyer, Steven Molo:

  • Reminded jurors to set aside personal opinions of the billionaire founders.
  • Described Musk’s growing concern over AI regulation, citing a 2015 meeting with then‑President Barack Obama.
  • Stated that Musk donated $38 million (≈£28 million) to OpenAI while it operated as a nonprofit, adding, “Without Elon Musk, there would be no OpenAI. Pure and simple.”

Legal Claims

• Musk’s demands:

  • Billions of dollars in “wrongful gains” to be redirected to OpenAI’s nonprofit arm.
  • A corporate shake‑up, including the removal of Altman as CEO.

• Allegations against Musk:

  • Breach of charitable trust.
  • Unjust enrichment.

• OpenAI’s counter‑claims:

  • Musk used his investment to “bully” other founders and attempted to merge OpenAI with Tesla.
  • He left the company after being denied control, not out of concern for its nonprofit status.
  • Motive framed as jealousy and regret for walking away from the venture.

Commercial Arm Controversy

Musk objects to OpenAI’s decision in 2018 to launch a commercial division—years before the release of ChatGPT—which sparked the modern commercial AI market. OpenAI argues Musk understood this move and only left after failing to become CEO.

Trial Proceedings

• The judge warned both parties against using their platforms to influence the trial.
• Judge Yvonne Gonzalez Rogers declined to impose a gag order, allowing participants to discuss the case publicly.
• Musk posted on X (formerly Twitter) referring to Altman as “Scam Altman,” prompting the judge to request a “clean slate” and caution against further social‑media provocations.
• Altman and co‑founder Greg Brockman agreed to the same restraint.

Current Status and Expected Verdict

• Jury selection concluded on Monday.
• Altman is expected to testify later in the trial.
• A verdict is anticipated in late May.