Altman details Musk's OpenAI fallout, says nonprofit was 'left for dead'

Altman details Musk's OpenAI fallout, says nonprofit was 'left for dead'

In a dramatic court session in Oakland, California, OpenAI's CEO Sam Altman took the witness stand to clarify his position in the ongoing legal battle against Elon Musk. The trial, stemming from Musk's lawsuit, revolves around allegations that Altman and other OpenAI executives deviated from their original nonprofit mission. During his testimony, Altman emphasized that Musk, a co-founder of OpenAI, had abandoned the organization during a critical phase of its development. "We were kind of left for dead," he stated, underscoring that Musk did not fulfill his commitments to the fledgling startup. The lawsuit, filed in 2024, claims that Musk’s $38 million donation was misallocated for commercial ventures, contrary to the charity's intended purpose. The trial has illuminated a series of contentious negotiations that took place between Musk, Altman, and fellow co-founders Greg Brockman and Ilya Sutskever between 2017 and 2018. These discussions revolved around the urgent need for funding and explored various corporate structures, including for-profit models. Eventually, Musk departed from OpenAI's board in February 2018, leading to unease among employees about the company’s future funding. Altman shared that while Musk's exit sparked concerns among some staff, it also served as a morale boost for others who had felt stifled by Musk's management style. "I don't think Mr. Musk understood how to run a good research lab," Altman remarked. Despite his departure, Musk continued to engage with the team, expressing skepticism about OpenAI's survival without a significant transformation in resources and execution. After Musk left, OpenAI went on to establish a for-profit subsidiary, which has since garnered a valuation exceeding $850 billion from private investors. Musk criticized this move, claiming it shifted focus away from OpenAI's nonprofit roots and accused Altman of attempting to "steal a charity." In response, Altman asserted that Musk was more interested in maintaining control over OpenAI rather than adhering to its charitable mission. He recounted Musk's desire for dominance in decision-making, revealing that such an attitude made Altman uncomfortable. The courtroom drama intensified as Musk’s lawyer, Steven Molo, probed Altman’s integrity, questioning his trustworthiness. Altman defended himself, stating he believes he is reliable, despite Molo's attempts to highlight past grievances from former colleagues. As the trial approaches its conclusion, with closing arguments set for Thursday, the outcome will ultimately be determined by Judge Yvonne Gonzalez Rogers, following deliberations by the jury next week.

Sources : CNBC

Published On : May 13, 2026, 14:25

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