In a dramatic turn in the ongoing legal battle between Elon Musk and OpenAI, a former board member has publicly accused CEO Sam Altman of lying to the board and to Congress. The allegation, which emerged during the trial in California, centers on Altman's ownership of the OpenAI Startup Fund. The former board member claims Altman never disclosed his personal ownership of the fund to the board and later testified under oath before Congress that he held no financial interest in the organization. If proven, this could constitute perjury.
Elon Musk, who testified on Tuesday, stated that he founded OpenAI, came up with its name, recruited key personnel, and provided all initial funding. He emphasized that OpenAI was structured as a nonprofit for the public good. Musk is seeking $150 billion in damages from OpenAI and Microsoft, with proceeds going to OpenAI's charitable arm, and is demanding Altman's removal from the board and a return to nonprofit status.
OpenAI's legal team, led by attorney William Savitt, countered that Musk supported a for-profit model only if he could control it. Savitt argued that Musk launched his own AI company, xAI, in 2023 after failing to gain control. He said, 'What he cares about is Elon Musk being on top.' The defense maintains that creating a for-profit subsidiary in 2019 was necessary to compete with Google's DeepMind and attract top talent.
U.S. District Judge Yvonne Gonzalez Rogers warned Musk to limit his social media posts after he called Altman 'Scam Altman' on X. Both Musk and Altman agreed to the restrictions. Microsoft, which invested $10 billion in OpenAI in 2023, stated it acted as a responsible partner. OpenAI is currently valued at over $850 billion, with a potential IPO possibly pushing the valuation to $1 trillion. The trial is expected to continue with testimony from Musk, Altman, and Microsoft CEO Satya Nadella.
