Elon Musk wanted to be a founder remembered for an AI nonprofit. He's now a witness in a trial that argues Sam Altman turned that nonprofit into one of the most valuable private companies in the world.
The Musk v. Altman trial moved into opening arguments and Musk's testimony Tuesday in Oakland, California.
Musk's lead lawyer Steven Molo opened by telling jurors OpenAI's leaders "stole a charity," then framed Musk's role: "Without Elon Musk, there would be no OpenAI, pure and simple."
He said Musk hired and trained leading AI scientists and put up $38 million in early funding. The case has been stripped down. Of 26 original claims, only two remain - breach of charitable trust and unjust enrichment.
Molo asked the jury to keep three questions in mind: did OpenAI have a charitable mission to operate as a nonprofit, did Altman and Greg Brockman violate that mission, and did Microsoft (MSFT) know about the mission and substantially help breach it?
On the stand, Musk repeated that he founded OpenAI as a nonprofit alternative to Google. "I came up with the idea, the name, recruited the key people, taught them everything I know, provided all the initial funding," Musk said.
His lawyer entered OpenAI's 2015 founding charter into evidence, which said OpenAI would create "open source technology for the public benefit" and that it was "not organized for the private gain of any person."
Musk also weighed in on AI's future, saying "it could make us more prosperous, but it could also kill us all." He predicted AI will be "as smart as any human as soon as next year."
OpenAI's lead attorney William Savitt told the jury that "we are here because Mr. Musk didn't get his way at OpenAI."
"He quit, saying they would fail for sure. But my clients had the nerve to go on and succeed without him."
Savitt argued Musk supported a for-profit OpenAI - as long as he was in control - and showed the court an email from former OpenAI board member Shivon Zilis describing two ways to restructure: a B Corp or a C Corp paired with a nonprofit.
Microsoft argued statute of limitations, with its lawyer saying Musk knew about the Microsoft relationship years before he sued.
Hours after Day 1 wrapped, the Wall Street Journal reported OpenAI is missing internal revenue and user growth targets as it eyes an IPO later this year, which sent chip stocks lower and dragged the Nasdaq down.
OpenAI just closed a $122 billion funding round at an $852 billion valuation, and Microsoft has invested more than $13 billion since 2019. The two companies just signed a revamped deal Monday that lets OpenAI cap revenue shared with Microsoft on subscriptions and serve products on any cloud.
Musk wraps testimony Wednesday, and next up is Jared Birchall, who runs Musk's family office. Musk has asked the judge to remove Altman and Brockman from OpenAI and to unwind last October's restructuring. He wants up to $134 billion in "wrongful gains" sent back to the OpenAI charity.
The jury's verdict will be advisory, with Judge Yvonne Gonzalez Rogers making the final call. If the liability phase goes Musk's way, the trial moves to remedies, and the structure of one of the most valuable AI companies on earth could be back on the table.
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