OpenAI CEO Sam Altman testified today, defending OpenAI's corporate structure against former cofounder Elon Musk’s legal challenge. Musk alleges OpenAI's founders improperly shifted the organization from a non-profit to a for-profit entity.
Altman's Defense
Altman was questioned on Musk’s claim that OpenAI founders “stole a charity” by launching a for-profit subsidiary. Altman responded, “It feels difficult to even wrap my head around that framing. We created one of the largest charities in the world.”
Musk’s attorneys highlighted that OpenAI’s foundation, now valued at $200 billion, lacked full-time employees until 2025. OpenAI board chair Bret Taylor explained this was due to the challenge of converting equity to cash.
Concerns Over Safety and Control
The lawsuit questions whether OpenAI’s commitment to safety was compromised by its commercial ambitions. Altman recalled a 2017 debate where Musk suggested, “maybe OpenAI should pass to my children,” if he died while controlling a hypothetical for-profit OpenAI. Altman expressed concern over Musk’s desire for control, emphasizing OpenAI’s mission to prevent single-party dominance over advanced AI.
Altman testified that Musk’s management style, suitable for engineering, was ineffective at OpenAI. “I don’t think Mr. Musk understood how to run a good research lab,” Altman stated, citing Musk’s demotivating tactics towards researchers.
Cofounders' Efforts and Musk's Departure
Altman highlighted the contributions of cofounders Greg Brockman and Ilya Sutskever, who managed OpenAI during Musk’s involvement elsewhere. Following unresolved clashes, Musk exited OpenAI's board, launching rival AI ventures at Tesla and xAI.
Despite the legal battle, Altman maintained communication with Musk, seeking his input and funding. OpenAI’s legal team noted Musk’s involvement in investments he later criticized.
Musk's Mixed Involvement
During a 2018 meeting about a Microsoft investment, Altman described a surprisingly positive interaction with Musk, who engaged in light-hearted discussions and shared memes.
This testimony adds a complex layer to the ongoing legal proceedings between Musk and OpenAI, highlighting the tensions and philosophical divides within the AI community.
Source: https://techcrunch.com/2026/05/12/musk-mulled-handing-openai-to-his-children-altman-testifies/
