OpenAI was born from a dinner argument. Elon Musk testified Tuesday that the idea for the company came after Google co-founder Larry Page called him a "speciesist" for caring more about humans than artificial intelligence, setting the stage for a legal battle that could reshape one of the world's most valuable companies.
Musk took the stand as the first witness in his blockbuster lawsuit against Sam Altman and OpenAI, telling the Oakland federal court that he founded the organization to serve as a counterweight to Google's dominance in AI. The trial, overseen by Judge Yvonne Gonzalez Rogers, marks the culmination of a dispute that began when OpenAI shifted from a nonprofit to a for-profit structure after Musk left its board in 2018.
"I could have started it as a for profit and I chose not to," Musk said.
Musk's attorney, Steven Molo, opened by telling the jury the case was simple: "The defendants in this case stole a charity." He argued that Altman, OpenAI President Greg Brockman, and Microsoft enriched themselves through the for-profit conversion of an organization meant to develop AI for humanity's benefit.
OpenAI's lead counsel, William Savitt, countered that Musk backed a for-profit structure while he was still involved but walked away when he could not secure total control. "We're here because Mr. Musk didn't get his way at OpenAI," Savitt said.
"Because he's a competitor. He will do anything he can to attack OpenAI." The financial stakes are enormous. OpenAI was valued at $852 billion at the end of March.
Musk is seeking to claw back tens of billions in "ill-gotten gains" from Altman, Brockman, and Microsoft, and wants Altman removed as a director of OpenAI's nonprofit board. He originally sought $134 billion in damages personally but now asks that any recovery go to the OpenAI charity.
Musk testified for nearly two hours, detailing his role in founding the company. He said he recruited top engineers, personally reached out to Nvidia CEO Jensen Huang to secure one of the first AI supercomputers, and contacted Microsoft CEO Satya Nadella to tap cloud computing resources.
"I came up with the idea, the name, recruited the key people, taught them everything I know, provided all of the initial funding," Musk said. "Besides that, nothing."
Musk contributed about $38 million to the nonprofit over roughly five years. He acknowledged seeking control of the for-profit entity but said he expected his stake to dilute below 50% within a few years.
His core concern: AI safety. Musk testified that he felt Google was not taking the risks of advanced AI seriously enough after his conversations with Page.
"We don't want to have a Terminator outcome," he said, referencing the 1984 film. The trial is expected to last about three weeks. Altman, Brockman, and Microsoft CEO Satya Nadella are all scheduled to testify.
