OpenAI chief Altman denies betraying Elon Musk

OpenAI CEO Sam Altman rejected Elon Musk’s claim that the ChatGPT maker betrayed its founding mission to serve the public good and said Musk was the one interested in taking control of OpenAI and making money from it.

In a lawsuit filed in August 2024, Musk accused Altman and OpenAI of convincing him to give him US$38 million ($53 million); but found that the nonprofit had abandoned its mission to benefit humanity and instead become a for-profit company.

The trial, now in its third week, could determine OpenAI’s future and leadership as it prepares for a possible IPO that could value the business at $A1 trillion ($A1.4 trillion).

Under questioning by his attorney in California federal court on Tuesday, Altman denied Musk’s claim that he and co-defendant OpenAI President Greg Brockman were trying to “steal a charity.”

“I find it difficult to even grasp that framework,” Altman said, adding that he hopes “as OpenAI continues to perform well, the nonprofit will perform even better.”

Musk’s lawyers tried to portray Altman as a liar about the OpenAI plan.

“If there is someone who is not trustworthy in charge of AI, I think that is a very big danger to the whole world,” Musk testified earlier in the hearing.

The hearing marks a conflict between tech giants; Musk portrays himself as a defender of ordinary people against the dangers of artificial intelligence and Silicon Valley giants who care more about money.

Musk, the world’s richest person, is seeking damages of around US$150bn ($A207bn) from OpenAI and Microsoft, a major investor, to be paid to the OpenAI non-profit organisation. ⁠He also wants Altman and Brockman removed from their roles.

OpenAI was co-founded in 2015 by several entrepreneurs, including Musk and Altman.

It was stated that Musk was aware of the for-profit plan before leaving the board of directors in 2018 and filed the lawsuit because he regretted missing out on potential riches.

OpenAI formed a non-profit organization in March 2019.

Asked by his lawyer, William Savitt, whether Musk opposed the for-profit plan, Altman said “quite the opposite.”

Altman recalled that Musk once demanded a 90 percent stake in OpenAI and said he was “extremely uncomfortable” giving up majority control even if Musk scaled back his demands.

“I’ve had a lot of experience with startups, I’ve seen a lot of fights for control,” he said, citing Musk’s SpaceX as an example where founders of well-performing companies have joined forces to maintain lasting control.

Altman also said that while he and other OpenAI leaders want to stay on Musk’s good side, they oppose Musk’s merger with electric car company Tesla.

“I don’t think we will have the ability to make sure our mission is accomplished,” he said. “Basically, Tesla needs to serve its customers and sell cars.”

Musk’s lawyer, Steven Molo, cited testimony from a former OpenAI board member who said Altman had cultivated a “toxic culture of lies” and seven former OpenAI officials who said Altman was not trustworthy.

“Have you misled people while doing business?”

“I don’t think so.”

Altman also testified that he was briefly ousted from OpenAI in 2023 when he challenged the board’s outspokenness and defended the need to benefit humanity.

He said he considered not returning and moving to Microsoft, but OpenAI meant a lot to him.

“I was ready to run into a burning building to save,” he said.

Altman does not directly own OpenAI capital but has a stake in a fund invested in the company.

The trial comes after OpenAI raised hundreds of billions of dollars from major tech companies and investors to add computing power. OpenAI has raised $175 billion from private investors over its lifetime, Altman said.

Altman said Musk’s departure sparked mixed feelings within OpenAI, with some concerned it could hinder funding while others were relieved that Musk’s demand that researchers regularly defend their advances was released.

Bret Taylor, OpenAI’s president, testified that OpenAI received a formal takeover offer from a consortium led by Musk’s rival company xAI in February 2025, six months after Musk filed the lawsuit.

“This proposal was a purchase of this nonprofit by a group of for-profit investors, which was contrary to the spirit of the case,” he said.

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