OpenAI Trial Reveals Musk’s Failed Tesla Takeover Attempt

Elon Musk offered Sam Altman a Tesla board seat and proposed creating a “world-class AI lab” within Tesla just months before leaving OpenAI’s board in February 2018, according to emails presented in federal court Wednesday. The revelation emerged during the ongoing Musk v. OpenAI trial, where Musk seeks to unwind OpenAI’s for-profit structure and claims he was deceived about the company’s mission.

Musk’s Corporate Takeover Strategy Exposed

Court testimony from Shivon Zilis, a former OpenAI board member and mother of four of Musk’s children, revealed the Tesla CEO’s systematic attempts to absorb OpenAI. According to Wired’s trial coverage, Zilis served as a conduit between Musk and Altman during these negotiations.

In February 2018 text messages presented as evidence, Zilis asked Altman about forming “a B Corp subsidiary of Tesla.” OpenAI lawyer William Savitt told reporters that documentary evidence showed “Mr. Musk had contemplated seeking to join Sam Altman to the board” as part of his “effort to corrupt OpenAI and absorb it into Tesla.”

Musk’s lawsuit claims Altman and OpenAI president Greg Brockman used his $38 million investment to create a private company now worth over $800 billion. OpenAI’s legal team argues Musk has harbored “sour grapes” since failing to control the company in 2017.

Pre-Trial Settlement Threats Surface

Two days before the trial began, Musk texted Brockman suggesting a settlement, according to TechCrunch’s reporting. When Brockman proposed both sides drop their suits, Musk responded: “By the end of this week, you and Sam will be the most hated men in America. If you insist, so it will be.”

The judge ruled this exchange inadmissible as evidence, but OpenAI’s lawyers included it in Sunday court filings. Legal observers noted the threatening tone undermines Musk’s claims that his lawsuit centers on AI safety concerns rather than financial grievances.

Musk’s demands include stripping Microsoft’s licensing agreement, requiring OpenAI’s technology be made public, and compelling the company to pay general, compensatory, and punitive damages plus legal fees.

Key Witnesses Paint Picture of Deception

The trial featured video depositions from former OpenAI CTO Mira Murati and ex-board member Helen Toner, both raising concerns about Altman’s alleged history of misleading behavior. The Verge reported that Musk, his financial manager Jared Birchall, and OpenAI cofounder Greg Brockman have already testified.

Microsoft CEO Satya Nadella is scheduled to appear Monday, followed by OpenAI cofounder and former chief scientist Ilya Sutskever. The witness lineup suggests both sides are preparing to debate OpenAI’s transformation from nonprofit to for-profit entity.

Zilis’ testimony proved particularly damaging to Musk’s narrative. Her role spanning OpenAI, Neuralink, and Tesla provided unique insight into Musk’s multi-pronged strategy to control AI development across his companies.

Industry Leaders Weigh In on Trust

Media mogul Barry Diller defended Altman’s character at The Wall Street Journal’s “Future of Everything” conference, calling him “a decent person with good values.” However, Diller emphasized that individual trustworthiness becomes “irrelevant” as artificial general intelligence approaches.

“One of the big issues with AI is it goes way beyond trust,” Diller said, according to TechCrunch. “It may be that trust is irrelevant because the things that are happening are a surprise to the people who are making those things happen.”

Diller noted that AI creators themselves express “a sense of wonder” about their technology’s capabilities, highlighting the unpredictable nature of advanced AI systems.

What This Means

The trial revelations suggest Musk’s lawsuit represents a calculated business strategy rather than genuine AI safety concerns. His documented attempts to absorb OpenAI into Tesla, combined with threatening pre-trial messages, support OpenAI’s counterargument that Musk seeks to damage a successful competitor.

The case could establish important precedents for AI company governance and the enforceability of mission-driven founding agreements. If Musk succeeds, it might force other AI companies to reconsider their corporate structures and investor relationships.

The testimony also illuminates the intense competition among tech leaders to control AI development. Musk’s failed takeover attempt preceded his launch of xAI, suggesting the current legal battle stems from his inability to lead the AI revolution through OpenAI.

FAQ

What exactly is Musk suing OpenAI for?
Musk wants to unwind OpenAI’s for-profit structure, force the company to make its technology public, strip Microsoft’s licensing rights, and pay him damages plus legal fees. He claims OpenAI abandoned its nonprofit mission to benefit humanity.

Did Musk really try to take over OpenAI through Tesla?
Yes, court evidence shows Musk offered Sam Altman a Tesla board seat and proposed creating an AI lab within Tesla in early 2018, just before leaving OpenAI’s board. Text messages reveal discussions about making OpenAI a Tesla subsidiary.

How much money did Musk invest in OpenAI?
Musk invested $38 million in OpenAI when it was a nonprofit. He claims this investment was used to build a company now worth over $800 billion, though OpenAI argues he left voluntarily after failing to gain control.