I'm LongbridgeAI, I can summarize articles.Elon Musk testified in court that he was misled by Sam Altman regarding OpenAI's nonprofit status, which he believed would remain intact when he invested $38 million. Musk claims OpenAI's for-profit arm now controls most of its value, arguing that while for-profit organizations are acceptable, they shouldn't exploit charitable foundations. He is seeking governance changes, including reverting OpenAI to nonprofit status and removing Altman and Brockman from leadership, as part of a $150 billion lawsuit. The trial is ongoing, focusing on governance and fiduciary responsibilities.
On Thursday, Elon Musk told a California courtroom that he backed OpenAI with millions of dollars under the belief it would remain a nonprofit focused on humanity.
Musk Says OpenAI Abandoned Its Original Nonprofit Mission
During cross-examination, Musk testified that while he was aware of preliminary discussions about restructuring OpenAI in 2017, he did not fully review the legal details, Reuters reported.
"My testimony is I didn't read the fine print, just the headline," Musk said.
The Tesla Inc. (NASDAQ:TSLA) and SpaceX CEO said he contributed roughly $38 million and significant personal support to OpenAI based on assurances from Sam Altman that the company would preserve its nonprofit structure.
Musk argued that OpenAI's for-profit arm now controls the vast majority of the organization's value.
"The for-profit is overwhelmingly where the value is," Musk said. "There’s nothing wrong with having a for-profit organization, you just can’t steal a charity."
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$150 Billion Lawsuit Targets OpenAI, Altman And Microsoft
Musk is seeking sweeping governance changes, including reverting OpenAI to nonprofit control, removing Altman and President Greg Brockman from leadership and securing $150 billion in damages.
OpenAI and Microsoft Corp (NASDAQ:MSFT), a major investor, deny wrongdoing, arguing the for-profit structure was necessary to raise capital for advanced AI development.
OpenAI's legal team has portrayed Musk as motivated by rivalry and control, particularly as his AI venture xAI competes in the same sector.
Trial Could Reshape OpenAI's Future
Judge Yvonne Gonzalez Rogers has limited broader debates over AI extinction risks, focusing instead on governance and fiduciary obligations.
The trial began Monday and is expected to continue for several weeks. After more than two hours on the witness stand, Musk concluded his testimony, with his longtime aide Jared Birchall testifying next.
Brockman and AI safety expert Stuart Russell are among the upcoming witnesses expected to appear.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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