Musk Says He Built OpenAI From Scratch — Lawyers Say He Just Wanted Control

TLDR

• Elon Musk testified he founded OpenAI, funded it, and recruited its key people
• Musk is suing OpenAI, Sam Altman, and Greg Brockman for abandoning its nonprofit mission
• He is seeking $150 billion in damages, with proceeds going to OpenAI’s charitable arm
• OpenAI’s lawyers argued Musk wanted control of the company and sued when he didn’t get it
• A judge warned Musk to limit social media posts after he called Altman “Scam Altman” on X

Elon Musk took the stand on Tuesday in a San Francisco courtroom, testifying in his lawsuit against OpenAI and its leaders Sam Altman and Greg Brockman. The trial centers on whether OpenAI broke its promise to remain a nonprofit dedicated to the public good.

Musk said he came up with the idea for OpenAI, recruited its early team, and provided its first funding. “I came up with the idea, the name, recruited the key people, taught them everything I know, provided all of the initial funding,” he testified.

He is seeking $150 billion in damages from OpenAI and Microsoft, with those proceeds directed to OpenAI’s nonprofit arm. He also wants Altman removed from the board and the company returned to nonprofit status.

OpenAI Pushes Back

OpenAI’s lead attorney William Savitt told jurors a different story. He said Musk supported a for-profit model, but only if he was in charge. When that didn’t happen, Musk launched his own AI company, xAI, in 2023.

Savitt also said Musk was not focused on AI safety, and had called OpenAI employees who prioritized safety “jackasses.”

OpenAI’s lawyers said the creation of a for-profit subsidiary in 2019 was necessary to compete with Google’s DeepMind and to attract top researchers.

Judge Warns Musk on Social Media

Before testimony began, U.S. District Judge Yvonne Gonzalez Rogers addressed Musk directly about posts he made on X, where he called Altman “Scam Altman” and accused him of stealing a charity.

The judge stopped short of issuing a gag order but urged Musk to limit his posts during the trial. Musk agreed. Altman also agreed to similar limits.

Musk testified that his concerns about AI safety grew after conversations with Google co-founder Larry Page, whom he said was not taking the risks seriously.

OpenAI is currently valued at over $850 billion. A potential IPO could push that figure to $1 trillion.

Musk is set to continue his testimony on Wednesday. Altman and Microsoft CEO Satya Nadella are also expected to testify.

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