On the second day of the jury trial against OpenAI (April 29), Tesla and SpaceX CEO Elon Musk took the witness stand, accusing current OpenAI executives of “looting” what was originally established as a nonprofit organization dedicated to benefiting all of humanity. The testimony featured heated exchanges with opposing counsel, with Musk admitting that his initial funding of OpenAI was “foolish.”

Core Testimony

Musk detailed OpenAI’s founding vision on the witness stand, emphasizing that the company was originally established as a nonprofit with the mission of ensuring artificial intelligence technology would safely benefit all of humanity, rather than pursuing profit maximization. He accused current CEO Sam Altman and other executives of betraying this mission.

“I naively thought we would together pursue a charitable enterprise,” Musk testified. “But I later realized they were actually looting a nonprofit organization.”

Heated Exchanges with Opposing Counsel

NBC News reported that Musk was highly combative during his testimony. When OpenAI’s attorneys attempted to question him about early decisions and financial commitments, Musk repeatedly interrupted and accused the opposing counsel of “trying to trick him.” At one point during questioning, he stated, “I literally was a fool,” acknowledging that his initial $38 million investment in OpenAI was a mistake.

According to Reuters, Musk accused Altman’s lawyer of “trying to play tricks” while on the stand, with both sides engaging in a fierce dispute over the process by which OpenAI transitioned from a nonprofit to a for-profit entity.

The OpenAI Transformation Dispute

The core controversy of this lawsuit centers on OpenAI’s transformation from a nonprofit research organization into a for-profit commercial enterprise. Musk claims that Altman and other executives changed the company’s fundamental structure and governance model without his consent, deviating from the original commitment to “put humanity’s interests first.”

OpenAI has countered that the company’s restructuring was necessary to secure the massive funding required for development and maintains that its mission statement remains valid. Altman, on the first day of testimony, painted a very different picture of the company’s origin story.

Market and Industry Reaction

This high-profile lawsuit has drawn intense attention from the global tech industry and investors. Some AI industry observers believe that regardless of the trial’s outcome, this public legal dispute could affect OpenAI’s reputation and business partnerships.

Meanwhile, OpenAI is advancing its $500 billion “Stargate” data center plan, the specifics of which continue to evolve.

Implications Ahead

The trial is expected to continue for several more days. Legal experts believe the case’s core issues involve not only corporate governance and contractual obligations, but also the fundamental question of how the AI industry should balance nonprofit ideals with commercial realities. Whatever the verdict, this case is likely to become a significant milestone in the history of AI development.

Source: NPR / Gizmodo / NBC News