OpenAI trial: Elon Musk testified about early AI rivalry with Google as Sam Altman looked on

The trial over OpenAI has begun, kicking off a showdown between Elon Musk and Sam Altman.

Musk, the CEO of Tesla, took the witness stand on Tuesday afternoon and testified about his early career and falling out with Google's Larry Page over AI talent. He's expected back on Wednesday.

At the heart of the case is Musk's accusation that OpenAI founders, including CEO Sam Altman, who was also in court Tuesday, deceived him into donating $38 million to OpenAI based on promises that it would remain a nonprofit dedicated to developing AI for the public's benefit, and not for private gain.

The trial pits two of the most powerful tech titans against each other. Musk is asking for up to $134 billion in damages and for Altman to lose his job, among other potential remedies.

Musk opened his testimony saying that a verdict siding with OpenAI would greenlight the 'looting' of American charities.

The court day is done, but Musk is set to return tomorrow

After two hours of hearing Elon Musk on the witness stand, the jury is going home.

Musk is due back in court on Wednesday for more direct examination from his lawyer, Steven Molo, followed by cross-examination, likely from OpenAI's and Sam Altman's lawyer, William Savitt. US District Judge Yvonne Gonzalez Rogers, who is overseeing the case, said Musk isn't allowed to speak to his attorneys overnight.

The jury trial is expected to take three weeks overall.

'Who is Shivon Zillis?

Elon Musk and his lawyer, Steven Molo, share an awkward moment when the attorney asks him, "Who is Shivon Zilis?"

Musk pauses and stumbles over his words before saying with a laugh that Zilis is his "chief of staff."

Musk and Zilis share multiple children, including twins. Zilis served on OpenAI's board until 2023 and has held positions at Tesla and Neuralink. She and Musk are often photographed together at social events.

Musk says he wasn't against a 'small' for-profit OpenAI component

Elon Musk tells jurors that he was open to a "small for-profit that would provide funding for the nonprofit" during OpenAI's internal talks about the matter between 2017 and 2018.

He says he made it clear that the nonprofit had to remain in control. "As long as the tail didn't wag the dog, I think," Musk testifies.

Musk says poaching Ilya Sutskever led to getting iced out by Larry Page

Musk says that it took him "an immense amount of effort" and that "it was extremely difficult" to recruit AI researcher Ilya Sutskever from Google to work for OpenAI. "Larry Page refused to speak to me ever again," Musk says.

The effort to recruit Sutskever took four to five days of back-and-forth in convincing him to leave while Page tried to convince Sutskever to stay, Musk adds. He calls Sutskever the "most important" researcher who contributed to the existence of OpenAI.

Sutskever no longer works at OpenAI, leaving to start his own AI lab in 2024 in the wake of Sam Altman's brief ousting as CEO.

Elon explains his intention for OpenAI's charitable structure

Elon Musk tells the jury that he planned from the beginning for OpenAI to be a 501(c)(3) charitable organization that would "aim to bring in more money than it spends." A charity, rather than a for-profit company, would crystallize its mission of developing artificial intelligence, he says.

"I don't want to fund OpenAI to make safe AI, and then find out it was making unsafe AI," Musk adds.

Analyst reacts to the trial and what a win for each side would mean:

Nate Elliott, principal analyst at Emarketer, a sister company of Business Insider, writes:

"It's impossible to ignore the fact that Musk's companies compete with OpenAI in both consumer and enterprise AI, making his suit – ostensibly in defense of the public interest – far from altruistic. But if Musk wins, it would represent a rare instance of a tech CEO being held to account. It could also mean the end of OpenAI's business. and give xAI and Grok the fighting chance they now lack."

OpenAI origins — and "Zuckerberg's roommate"

Questioning turns to OpenAI's 2015 origins. Musk says the name OpenAI emerged from discussions with Sam Altman and other founders. "The 'open' in OpenAI represents open source," says Musk.

Musk and his lawyer, Steven Molo, are looking at email exchanges showing that Musk, at the time, proposed a five-person board for OpenAI consisting of himself, Altman, Bill Gates, Pierre Omidyar, and Dustin Moskovitz, whom he refers to on the stand simply as "Zuckerberg's roommate."

Musk's argument with Google cofounder Larry Page

Elon Musk testified that Google cofounder Larry Page called him a "speciest" for being "pro-humanity" over AI. It's an exchange we've heard about before.

Musk and Sam Altman founded OpenAI, in part, as a counterweight to Google's artificial intelligence initiative, DeepMind. They wanted cutting-edge AI to benefit all of humanity and not remain in the hands of a company, Musk has said in court documents. Musk alleges Altman betrayed that mission.

Musk said he sounded the alarm on AI risks with Obama

Musk testified that he met one-on-one with then-President Barack Obama in 2015 and used the time to warn him about the dangers of AI.

Instead of seeking favors for his companies, Musk said he spent an hour with Obama focused on the risks AI could pose.

Musk on his SpaceX goals

While on the witness stand, Elon Musk testifies that his goal with his rocket company, SpaceX, is "to make life multiplanetary."

"If we're multiplanetary," Musk says, "we're more likely to survive." He adds: "It's life insurance for life as we know it."

Musk's SpaceX acquired his AI startup, xAI, in February, and SpaceX is preparing to go public as soon as this year in an IPO that could value it at more than $2 trillion.

AI is like a smart child that needs proper values, Musk says

Musk compares AI to a very smart child, but one that could "blow up" and run out of control if we're not careful. As such, Musk says it's important to "instill the right values" in the child.

"That has been my long standing concern about AI, which is what happens when the computer gets much smarter than humans?" Musk adds.

Musk details his lack of work-life balance

After telling the jury about serving as CEO of both Tesla and SpaceX, Elon Musk explained how he does it all: He doesn't take a break.

"I technically work 80 to 100 hours a week," Musk said. "I don't have vacations, I don't have vacation homes. I just want to build businesses that make people's lives better."

Musk's companies additionally include brain technology company Neuralink and the tunnel-drilling Boring Company. The serial CEO also has at least 14 children.

The world's richest man talks student loans

In his walk down memory lane, Musk told the jury he had "$100,000 dollars in student debt" before being able to profit from his first company, Zip2. The jury likely knows the CEO of Tesla and SpaceX as the world's richest man with an estimated net worth of around $780 billion, according to Forbes.

Musk tells the jury about his background

After setting the stakes for the trial, Elon Musk's lawyer Steven Molo asked him about his childhood. The tech mogul grew up in South Africa and spent time in Canada before living in the United States.

"I was a lumberjack, I waited tables, I did some programming, contract programming of computers, and I went to Queen's University in Canada," Musk told the jury.

Musk says this case could impact other charities

After taking the stand, Elon Musk said the outcome of his legal fight with OpenAI and Sam Altman couldn't be more important.

He said charitable giving is at stake in his legal fight with OpenAI and Sam Altman.

"It will become precedent, and it will give license to looting every charity in America," Musk told the nine-person jury.

Elon Musk has taken the witness stand

Elon Musk, the world's richest man, has taken the witness stand as the first witness in his high-stakes legal battle with OpenAI and Sam Altman. Altman was in the courtroom for the testimony.

Musk sued Altman and other OpenAI executives in 2024, alleging that they intentionally "deceived" him into putting up tens of billions when they cofounded the company together in 2015.

Altman and his allies " have been unjustly enriched to the tune of hundreds of billions of dollars," Musk's lawsuit says.

Attacks on Musk's AI are already starting

The crux of OpenAI's case is that Elon Musk is trying to take down a rival. Musk is the founder of xAI, the company behind the Grok chatbot.

On Tuesday, Microsoft's lawyer told the jury that Musk was suing because he had "fallen behind" in the AI race. "He launched xAI, and then he sued."

In an effort to compete, Musk has poured billions into xAI, integrated Grok into X, and leveraged his broader tech empire to scale the platform quickly.

Musk could have called Nadella, Microsoft's lawyer said

In some ways, Silicon Valley is a small community, and this case exemplifies that. Many of the parties were once friends, colleagues, business partners — or all three.

The lawyer for Microsoft, Russell P. Cohen, made a reference to this in his opening remarks: "Mr. Musk knows how to get in touch with Mr. Nadella," said Cohen. "Mr.Musk never picked up the phone to say 'you can't do this.'"

Microsoft is also a defendant in the case

Elon Musk's lawsuit alleges OpenAI effectively became part of Microsoft through the tech giant's investments in the artificial intelligence firm, which began in 2019. Russell P. Cohen, an attorney representing Microsoft, spent his opening arguments trying to rip this logic apart. Microsoft wasn't going to invest billions of dollars for "charity," Cohen said.

"OpenAI retained control of its technology and control of the company, and you're going to hear from Mr. Nadella that this is a win-win," said Cohen, referring to Microsoft CEO Satya Nadella. "Unlike Mr. Musk, Microsoft never tried to control OpenAI."

Who's expected to testify?

Elon Musk is expected to take the witness stand as soon as today. He has been allotted six hours of testimony, Business Insider's Laura Italiano reported last week.
The witness list in this case is a veritable who's who of tech, although not everyone on the list will appear in person. Italiano's story breaks down the key players and their potential roles, including Microsoft CEO Satya Nadella, renowned computer scientist Ilya Sutskever, and Shivon Zilis, a director at Musk's brain-computer interface venture Neuralink and the mother of several of his children.

Read full story

Musk tried to take control of OpenAI: Altman's lawyer

Sam Altman's attorney, William Savitt, told the jury in his opening statements that the evidence will show Elon Musk tried to take control of OpenAI.

Savitt said Musk "demanded control" of the AI firm and used his bankrolling of it to put "a financial gun to the head of other founders."

Musk alleges he invested tens of millions in seed money to OpenAI over the years, only to be "betrayed" by Altman and other executives.

Inside the courtroom, from the tables to the dog

Here's what the layout looks like in the Oakland, California, federal courtroom, according to a sketch from Business Insider reporter Katherine Li.

From the perspective of journalists and other members of the audience in the gallery, Elon Musk and his legal team have a big table on the left, and Sam Altman's and OpenAI's legal team sit on the right.

The lawyers are sitting on what is known in the legal parlance as "rolly chairs." The courtroom is filled to the brim, and there's a dog at the back of the room, near the entrance, keeping everyone safe.

Elon's donation didn't come with strings attached: OpenAI lawyer

William Savitt, representing Sam Altman and OpenAI, is spending his opening statement batting away Elon Musk's claims that his $38 million in charitable donations came with conditions. Musk alleges Altman deceived him by taking the money and then transforming OpenAI into a for-profit enterprise.

"The question is whether OpenAI made specific promises to Musk when he made his donations," Savitt said. "And the answer to that is no."

Judge calls out Musk—Altman clash over case posts

Ahead of Tuesday's opening statements, US District Court Judge Yvonne Gonzalez Rogers reportedly called out Elon Musk and Sam Altman, who were both in the courtroom, over their public sparring about the case a day earlier.

The judge begged the billionaire onetime pals to stop the online potshots.

"After they posted very publicly about this case, only then did I respond," Musk told the judge, according to an X post from journalist Mike Swift.

On Monday, Musk and OpenAI traded barbs on Musk's X platform about the case, with Musk referring to Altman as "Scam Altman" and OpenAI ripping Musk's lawsuit as a "baseless and jealous bid to derail a competitor."

OpenAI lawyer: 'Musk never cared about OpenAI being a nonprofit'

In his own opening statement, William Savitt, representing Sam Altman and OpenAI, says Elon Musk brought the lawsuit because he's losing the AI race.

"The evidence will show that Musk never cared about OpenAI being a nonprofit, he never cared about open source, he never cared about AI safety," said Savitt, of the elite Wall Street law firm Wachtell, Lipton, Rosen & Katz. "The only thing Musk cared about is being on top."

It's a packed house

The line to get into witness the epic showdown was so long, it went out the front doors of the Oakland federal courthouse. Business Insider reporter Katherine Li waited in the line earlier Tuesday with lawyers, press, and what appeared to be members of the public, before getting inside just in time for opening arguments.

On Monday, the outside of the courthouse was overflowing with protesters, including a guy dressed in a robot suit with a sign that read: "Altman's AI enslaver."

Here's what's happened so far

• Elon Musk lawyer Steven Molo kicked off the trial with opening statements attacking Sam Altman.
• "The case isn't about Elon Musk," Molo said. "It's about the defendants that helped Musk found a nonprofit charity OpenAI. And in the process, they have enriched themselves and breached the very principle the organization was founded upon."
• The trial is now in recess. A lawyer representing OpenAI and Sam Altman will present opening arguments next.
• Elon Musk is expected to take the stand as soon as today.

OpenAI 'broke every promise,' Musk's lawyer tells the jury

OpenAI, founded as a nonprofit AI research lab, "broke every promise" when it became "a for-profit operation for the good of the defendants," Elon Musk's attorney, Steven Molo, told the jury in his opening remarks.

Last year, OpenAI completed a major restructuring that shifted the company toward a more conventional for-profit structure. It's now valued at over $800 million and is reportedly working toward an IPO that could take place this year.

Lots of boxes — what's inside?

Already, this case has led to a treasure trove of private emails and other documents, including text messages showing Musk asking Meta's Mark Zuckerberg to join him in an unsolicited bid for OpenAI's intellectual property.
Earlier on Tuesday, employees at MoloLamken, a firm representing Elon Musk, were spotted wheeling boxes of documents into the Oakland courthouse.

Nine jurors will decide the case, but OpenAI's fate will be up to the judge.

Nine jurors will be deciding whether OpenAI is liable in the trial.

If OpenAI is found liable, US District Judge Yvonne Gonzalez Rogers will be deciding the remedies in a separate phase. As Business Insider has previously reported, Judge Gonzalez Rogers is considered tough but fair.

Musk has asked her to reverse the transformation of OpenAI's for-profit arm and disgorge it of "ill-gotten gains."

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Elon boosts New Yorker article on Sam Altman

Ahead of the trial's opening arguments, Elon Musk boosted the visibility of a New Yorker magazine investigation about Sam Altman. The New Yorker story examined claims that Altman had been dishonest in business dealings and in running OpenAI — claims that dovetail with Musk's lawsuit.

On Musk's social media network X, formerly Twitter, a post from one of the article's co-authors Ronan Farrow was labeled as "Boosted" and said, "This organic post was boosted by @elonmusk."

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Without Musk, there's no OpenAI, his lawyer says

In his opening statements, Elon Musk's attorney, Steven Molo, explained how the Tesla CEO provided tens of billions of dollars for "OpenAI to get up and running off the ground."

"Without Elon Musk, there will be no OpenAI," Molo told the federal jury.

Musk helped found the ChatGPT maker in 2015, together with OpenAI CEO Sam Altman and company president Greg Brockman, who is also a defendant in the case.

Case isn't about Elon Musk, his lawyer says

The Musk v. Altman civil trial kicked off with opening statements on Tuesday, first led by Musk's attorney, Steven Molo.

"The case isn't about Elon Musk," Molo told the nine-person jury at the top of his remarks as Musk looked on from the courtroom.

During jury selection, some jurors took issue with Musk, with one referring to him as a "world-class jerk" in a pre-trial questionnaire.

"It's about the defendants that helped Musk found a nonprofit charity OpenAI," Molo said. "And in the process, they have enriched themselves and breached the very principle the organization was founded upon."

Elon Musk goes through security

Photogs have already captured Elon Musk, the world's richest man and CEO of Tesla, entering the Ronald V. Dellums Federal Building in Oakland, California, where his civil case is underway.

The lawyers will kick off the trial with opening arguments, followed by the witnesses. Musk could be the first witness in his $134 billion case against Sam Altman and OpenAI, which he helped start in 2015.

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