Altman Confronts Musk in Court Over OpenAI's For-Profit Shift

---

In a heated court showdown during the third week of Elon Musk’s federal lawsuit against OpenAI, CEO Sam Altman took the stand to defend the company’s transition from a nonprofit to a for-profit entity. The trial, held in U.S. District Court in Oakland, California, saw Altman directly challenging Musk’s claims that he and co-founder Greg Brockman “stole a charity” by restructuring the artificial intelligence lab.

Musk, who contributed tens of millions to OpenAI before leaving its board in 2018, accuses Altman and Brockman of betraying the nonprofit’s original mission. He seeks their removal from leadership roles, over $150 billion in damages, and the reversal of OpenAI’s 2019 restructuring, which now heavily involves Microsoft as a major stakeholder. Musk argues that Altman and Brockman bilked him out of donations and compromised OpenAI’s open-source charity mission by licensing their flagship product exclusively to Microsoft.

Altman countered during his testimony, stating that Musk had pushed for significant personal control early on, including an offer for 90% equity he found unacceptable. He also rejected Musk’s proposal to merge with Tesla, fearing it would compromise OpenAI’s independence. Altman portrayed Musk’s current lawsuit as driven by “sour grapes” after Musk launched his rival xAI lab and attempted to poach OpenAI researchers.

The trial delves into the bitter feud between former friends and co-founders, with both parties accusing each other of betrayal and hypocrisy. Altman described his tenure at OpenAI as tumultuous, emphasizing the company’s growth from a struggling nonprofit in 2015 to a $852 billion-valued entity following its restructuring as a public benefit corporation.

As the trial continues, the outcome could reshape the future of one of the most significant AI research organizations in the world.