Musk Says Funding OpenAI Was Foolish, Testifies in Case Against It

Elon Musk testified in court on Wednesday that he regrets funding OpenAI. He stated he financed the company after CEO Sam Altman assured it would remain a nonprofit dedicated to human progress. However, Musk later felt betrayed and began doubting the direction of the AI firm.

Musk alleged in his civil lawsuit that OpenAI, Altman, and OpenAI President Greg Brockman reneged on their founding agreement by prioritizing profit over their promise to keep OpenAI as a nonprofit. The trial is being held in the U.S. District Court for the Northern District of California and is expected to last about four weeks.

Musk contributed $38 million from December 2015 through May 2017. Today, the AI company is valued at more than $85 billion. Lawyers for OpenAI deny Musk’s allegations, stating that leaders never promised the company would remain a nonprofit forever.

During cross-examination, Musk argued questions were designed to trick him and any simple answer could mislead the jury. Judge Yvonne Gonzalez Rogers intervened, asking whether it was true or false that OpenAI was formed as a nonprofit in December 2015. Musk confirmed it was but added that such situations are not always straightforward.

Despite humor during the trial, its stakes are high as they could influence AI’s future power balance. Musk’s lawsuit seeks to remove Altman from OpenAI’s board and potentially halt the company’s IPO plans. The former allies’ falling out is evident in the trial. Musk said his views on Altman and cofounders shifted from excitement to loss of confidence, then a period in late 2022 where he felt they were betraying their promise.

OpenAI claims there were no assurances Musk would eventually lose control of the board majority.