"Musk Demanded Control of OpenAI, Says Altman in Court Testimony"

Sam Altman, Chief Executive Officer (CEO) of OpenAI, testified in court that Elon Musk, CEO of Tesla, not only supported OpenAI's transition to a for-profit entity in the past but also demanded equity and management control.

According to the Associated Press and the Wall Street Journal (WSJ), CEO Altman appeared as a witness at the U.S. District Court for the Northern District of California in Oakland on the 12th (local time). When asked whether CEO Musk had opposed the plan to turn OpenAI into a for-profit company, Altman replied, "It was the exact opposite." CEO Musk has filed a lawsuit seeking Altman's removal and the return of unjust enrichment, claiming Altman broke his promise to operate OpenAI as a nonprofit. However, Altman's statement indicated the exact opposite.

Altman added that at the time, the co-founders, including CEO Musk, believed it was necessary to convert to a for-profit company to secure the vast funding required for AI development. CEO Musk supported the establishment of a for-profit entity from the beginning and even insisted that he should own 90% of the equity. Musk explained that, as the most famous person among them, a single tweet from him could instantly boost OpenAI's value. Altman said, "One of the reasons for starting OpenAI was the belief that, no matter how good the intentions, artificial general intelligence (AGI) should not be under the control of any single individual." He added that when the co-founders asked Musk about succession after his death, Musk replied, "It should go to my children," which Altman described as "an especially chilling moment."

Altman stated that when OpenAI established its for-profit subsidiary between late 2018 and early 2019, he asked Musk if he would be interested in investing. However, "he refused, saying he would not invest in a startup he did not control," Altman explained.

Altman also downplayed Musk's contribution, stating that the $38 million Musk invested accounted for only 28% of the total investment between 2015 and 2020. Regarding Musk's claim that Altman had "stolen a public interest organization," Altman responded, "I can't even understand that framing." He also criticized Musk for imposing an assembly-line corporate culture on the AI lab, such as ranking employees and demanding the dismissal of low performers.

Bret Taylor, Chair of the OpenAI Board of Directors, who previously took the stand, revealed that CEO Musk made an acquisition offer for OpenAI through the xAI consortium in February last year, just six months after filing the lawsuit against the company. Taylor pointed out, "That proposal seemed inconsistent with the spirit of this lawsuit," and said that the board unanimously rejected the offer at the time.