Elon Musk spars with OpenAI attorney in trial over company’s evolution from a nonprofit
OAKLAND, Calif. — Elon Musk clashed with an OpenAI lawyer Thursday during his third day of testimony in the controversial trial over the company’s transition from a nonprofit to a for-profit company valued at hundreds of billions of dollars.
The essay focuses on the 2015 birth of the creator of ChatGPT as a nonprofit startup primarily funded by Musk. It pits the world’s richest person against Sam Altman, another OpenAI co-founder who he accuses of betraying his promises to keep the company as a nonprofit dedicated to the good of humanity.
On the stand, Musk took issue with cross-examination by opposing attorney William Savitt, accusing him of asking misleading questions intended to mislead him and the jury. At one point Thursday, Savitt asked Musk about earlier testimony in which he said that as long as investors’ profits were capped, OpenAI was not violating agreements to make it a nonprofit.
“It depends on the level of the cap,” Musk replied. Savitt then said: “Was your complete answer yesterday incorrect? In response, Musk said that “few answers will be complete, especially if you interrupt me all the time.” He added that if the cap is “very high,” then OpenAI is “really a for-profit company at this point.”
OpenAI’s lawyers rejected the allegations made in Musk’s civil lawsuit and said there was never any promise that the company would remain a nonprofit forever. The company argued that Musk’s legal challenge was aimed at curbing OpenAI’s rapid growth and strengthening Musk’s xAI, which he launched in 2023 as a competitor.
The trial in federal court in Oakland, California, is expected to continue until the end of May. Judge Yvonne Gonzalez Rogers excused Musk from the witness stand Thursday, but he could be recalled later.
During cross-examination, Savitt also asked Musk about his companies – Tesla, SpaceX, Neuralink and X – and whether they were all for-profit. Musk said yes and said he thought all of these ventures were “socially beneficial.”
Savitt then asked why Musk didn’t start a nonprofit himself, eight years after leaving OpenAI.
“I thought I created a nonprofit with OpenAI, but they stole it,” Musk responded, adding that it was “the very basis of this lawsuit.”
