On the second day of the OpenAI case, one of the most critical legal proceedings shaping the future of artificial intelligence, Elon Musk testified as a witness. Accusing OpenAI CEO Sam Altman of “betraying the public” by undermining the non-profit nature of the foundation they established, Musk engaged in heated arguments with the company’s lawyer during cross-examination.
elchi reports that the case focuses on OpenAI’s transition from a charitable and non-profit enterprise founded in 2015 to a traditional commercial structure last October.
Musk criticizes OpenAI for both using its charitable image to raise donations and for its founders accumulating vast wealth through this structure.
He emphasized that he built his own venture, xAI, for profit, but consciously designed OpenAI as a “charity” for the public good, and called the questions posed by the company’s lawyer, Bill Savitt, “complex and misleading.”
$1 billion pledge and “reputation” dispute
One of the main issues in the hearing was Musk’s initial pledge of $1 billion in financial support.
Sam Altman’s lawyers claimed that Musk never fulfilled this pledge, while Musk admitted that he withdrew his commitment because he lost trust in the team.
Musk stated that he provided a total of $38 million in cash assistance and also emphasized the value of his “reputational contributions,” such as the power of his brand, recruitment efforts, and connections. The judge had to warn Musk several times to answer direct questions regarding these defenses.
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