OpenAI Trial Reveals Musk’s Tesla Recruitment Bid for Altman

Musk Offered Altman Tesla Board Seat Before OpenAI Exit

Elon Musk attempted to recruit OpenAI CEO Sam Altman to lead a “world-class AI lab” within Tesla just months before Musk left OpenAI’s board in February 2018. According to emails and testimony presented in federal court, Musk offered Altman a Tesla board seat as part of the recruitment effort.

The revelation emerged during cross-examination of Shivon Zilis, a former OpenAI board member and mother of four of Musk’s children, in the ongoing Musk v. Altman trial. OpenAI’s legal team used the testimony to question Musk’s true motives, arguing he has “sour grapes” after failing to control OpenAI.

Musk is seeking up to $134 billion in damages from OpenAI and Microsoft, claiming Altman and president Greg Brockman deceived him into donating $38 million to what he believed would remain a nonprofit focused on AI safety.

Threatening Text Messages Surface Before Trial

Two days before the trial began, Musk sent threatening messages to OpenAI leadership after settlement discussions broke down. According to OpenAI’s court filing, when Brockman suggested both sides drop their lawsuits, 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 the text exchange inadmissible as evidence, but OpenAI’s lawyers argue it demonstrates Musk’s true motivation is financial rather than concern for AI safety. The messages came after Musk initially suggested OpenAI settle the lawsuit.

Musk’s legal action seeks to unwind OpenAI’s for-profit structure, strip Microsoft’s licensing agreement, and require the company’s technology be made publicly available.

Former CTO Reveals Details of Altman’s 2023 Ouster

Former OpenAI CTO Mira Murati’s videotaped deposition provided new details about Sam Altman’s dramatic November 2023 firing and reinstatement. The Verge reported that Murati’s testimony offered the first concrete look behind the scenes of the weekend that shook the AI industry.

The OpenAI board initially ousted Altman for not being “consistently candid,” but he was reinstated within days after employee and investor pressure. Murati briefly served as interim CEO during the chaos.

The deposition testimony is part of Musk’s broader argument that Altman has a pattern of deceptive behavior, supporting his claims that OpenAI abandoned its nonprofit mission.

Microsoft CEO Scheduled to Testify

Microsoft CEO Satya Nadella is scheduled to appear in court on Monday, May 11th, followed by former OpenAI chief scientist Ilya Sutskever. According to The Verge, their testimony could be crucial given Microsoft’s multi-billion dollar investment in OpenAI and its central role in the company’s transformation.

Greg Brockman testified this week that Musk actually pushed for OpenAI to create a for-profit arm and sought “absolute control” over it. MIT Technology Review reported that OpenAI argues Musk is suing because he didn’t get his way and now wants to undermine a competitor to his xAI company.

The trial has already featured testimony from Musk, his financial manager Jared Birchall, Brockman, and Zilis. Former OpenAI board member Helen Toner also provided videotaped testimony.

Stakes Include OpenAI’s Trillion-Dollar IPO Plans

The trial’s outcome could derail OpenAI’s plans for an IPO at a valuation approaching $1 trillion. Musk’s lawsuit challenges the restructuring OpenAI completed last year, which converted its for-profit subsidiary into a public benefit corporation.

Meanwhile, Musk’s xAI, founded in 2023, is now a division of SpaceX. The combined companies represent a direct competitive threat to OpenAI’s market position in artificial intelligence.

OpenAI maintains that Musk’s lawsuit is “baseless” and motivated by competitive concerns rather than genuine AI safety issues. The company argues that Musk understood and supported the eventual for-profit transition when he was involved.

What This Means

The trial exposes the deep tensions between OpenAI’s original nonprofit mission and its current for-profit reality. Musk’s recruitment attempt of Altman suggests he saw value in OpenAI’s talent and technology even before his departure, undermining claims that he only objected to commercialization on principle.

The threatening text messages and $134 billion damage claim indicate this case extends beyond philosophical differences about AI development. If Musk succeeds, it could force OpenAI to restructure fundamentally, potentially disrupting the entire AI industry’s commercial model.

For OpenAI, the trial represents an existential threat to its IPO timeline and Microsoft partnership. The company’s defense strategy focuses on portraying Musk as a spurned founder seeking revenge rather than a principled advocate for AI safety.

FAQ

What is Elon Musk seeking in his lawsuit against OpenAI?
Musk wants up to $134 billion in damages, removal of Altman and Brockman from leadership, unwinding of OpenAI’s for-profit structure, and public release of the company’s AI technology. He also seeks to strip Microsoft’s licensing agreement.

Why did Musk leave OpenAI in 2018?
According to trial testimony, Musk left after failing to gain control of OpenAI. He had pushed for a for-profit structure and sought “absolute control” over it, but was unsuccessful. He then founded the competing xAI company in 2023.

How could this trial affect OpenAI’s IPO plans?
A ruling in Musk’s favor could force OpenAI to restructure as a nonprofit and unwind its Microsoft partnership, potentially derailing plans for a trillion-dollar IPO. The legal uncertainty alone may delay the public offering until the case is resolved.