Elon Musk told a California federal court that OpenAI’s leadership diverted a nonprofit mission toward profit, while also stating under oath that Tesla is not currently pursuing artificial general intelligence, contradicting a recent public claim.
Core Allegations And Legal Focus
Musk’s lawsuit argues that co-founders including Sam Altman, Ilya Sutskever, and Greg Brockman misled him into supporting a nonprofit initiative before shifting toward a for-profit structure.
The case, heard by Judge Yvonne Gonzalez Rogers, may hinge on how the court evaluates limits on investor returns. Musk argued that early structures capped profits, while later changes allowed broader financial gains.
Cross-Examination And Prior Support For For-Profit Plans
During questioning, OpenAI lawyer William Savitt presented evidence that Musk had previously supported transitioning OpenAI toward a for-profit model to secure funding and compete with firms such as Google.
Musk acknowledged discussing a for-profit structure as early as 2016 and exploring a model in which he would hold majority control in 2017. After those plans did not proceed, he reduced financial support but continued covering certain costs until 2020.
Testimony On Tesla And AI Development
Musk said Tesla’s AI efforts are focused on self-driving technology rather than AGI. The statement contrasted with a recent post in which he suggested Tesla could develop AGI.
He was also questioned about claims that he invested $100 million in OpenAI, while records show approximately $38 million. Musk said his contributions included non-financial factors such as influence and network access.
Recruitment And Internal Communications
Court discussions included emails showing Musk supported recruitment efforts targeting OpenAI employees for Tesla and Neuralink while still associated with OpenAI.
Testimony referenced attempts to hire figures such as Andrej Karpathy and discussions involving Shivon Zilis about bringing additional OpenAI personnel to Tesla.
Safety Arguments And Ongoing Proceedings
Musk argued that OpenAI’s transition toward a more traditional corporate structure reduces emphasis on safety. Under questioning, he acknowledged that safety risks apply across AI companies, including his own ventures.
Judge Gonzalez Rogers limited discussion of specific incidents but indicated that comparisons between safety approaches at OpenAI and Musk-linked companies, including xAI, could be examined.
Musk is expected to continue testimony, with additional witnesses including Jared Birchall, Stuart Russell, and Brockman scheduled to appear.
Featured image credits: creativecommons.org
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