OpenAI Trial Reveals Musk’s Tesla Takeover Attempt, Altman

Elon Musk attempted to recruit Sam Altman to join Tesla as part of a “world-class AI lab” just months before leaving OpenAI’s board in February 2018, according to emails and testimony presented in federal court this week during the ongoing Musk v. Altman trial. The revelations emerged as the high-stakes legal battle entered its second week, with testimony from former OpenAI executives shedding new light on both Musk’s departure and Altman’s dramatic November 2023 ouster.

According to Wired, Musk offered Altman a Tesla board seat as part of the recruitment effort. The emails were presented during cross-examination of Shivon Zilis, a former OpenAI board member and mother of four of Musk’s children, who served as a conduit between Musk and Altman during the 2018 period.

Musk’s $38 Million Investment Claims

Musk’s lawsuit centers on his claim that Altman and OpenAI president Greg Brockman effectively stole a nonprofit organization, using his $38 million investment to create what is now a private company valued at over $800 billion. The Verge reported that Musk filed the lawsuit in 2024, accusing OpenAI of abandoning its founding mission of developing AI to benefit humanity in favor of profit maximization.

OpenAI’s legal team has countered by questioning Musk’s true motives, arguing the Tesla CEO has harbored “sour grapes” since failing to assume control of OpenAI in 2017. The company’s lawyers suggested Musk’s recruitment attempt was part of a broader effort to “corrupt OpenAI and absorb it into Tesla,” according to OpenAI attorney William Savitt.

Settlement Texts and Threats

Two days before the trial began, Musk texted Brockman suggesting OpenAI settle the lawsuit. When Brockman replied by suggesting both sides drop their suits, TechCrunch reported that 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 settlement exchange inadmissible as evidence, but OpenAI’s lawyers included it in a Sunday filing to demonstrate what they characterize as Musk’s true motivations. The lawsuit seeks to unwind OpenAI’s for-profit structure, require its technology be made publicly available, strip Microsoft’s licensing agreement, and compel OpenAI to pay general, compensatory, and punitive damages plus legal fees.

Altman Ouster Details Surface

The trial has provided the first concrete look behind the scenes of Altman’s November 2023 dismissal, largely through videotaped deposition testimony from former CTO Mira Murati. The Verge noted that the board’s explanation for Altman’s removal was that he was “not consistently candid in his communications with the board.”

Murati’s deposition revealed new details about the dramatic weekend that saw Altman ousted and then reinstated within days. The testimony included concerns raised by former board member Helen Toner about what Musk’s lawyers characterized as Altman’s “alleged history of deceit.”

Key Witnesses and Upcoming Testimony

Several high-profile witnesses have already testified, including:

• Elon Musk and his financial manager Jared Birchall
• OpenAI cofounder Greg Brockman
• Shivon Zilis, former OpenAI board member
• Videotaped depositions from Mira Murati and Helen Toner

Microsoft CEO Satya Nadella is scheduled to appear on Monday, May 11th, followed by OpenAI cofounder and former chief scientist Ilya Sutskever. The testimony from these key figures could prove crucial given Microsoft’s significant investment in and partnership with OpenAI.

Industry Support for Altman

Despite the trial’s revelations, some industry leaders continue to express confidence in Altman’s leadership. Media mogul Barry Diller, speaking at The Wall Street Journal’s “Future of Everything” conference this week, vouched for the OpenAI CEO’s character. TechCrunch reported that Diller called Altman “a decent person with good values” while acknowledging that “trust is irrelevant” as artificial general intelligence approaches.

“One of the big issues with AI is it goes way beyond trust,” Diller explained. “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.”

What This Means

The trial revelations illuminate the complex power dynamics that shaped OpenAI’s evolution from nonprofit to for-profit hybrid. Musk’s attempted Tesla recruitment of Altman suggests his departure from OpenAI’s board wasn’t simply about philosophical differences, but potentially about control and competitive positioning in the AI market.

The detailed testimony about Altman’s 2023 ouster provides unprecedented insight into OpenAI’s internal governance challenges during a period of explosive growth. With ChatGPT’s success transforming OpenAI into one of the world’s most valuable AI companies, the trial’s outcome could establish important precedents for nonprofit-to-profit transitions in the tech industry.

The case also highlights the intensifying competition between AI companies, with Musk’s xAI now competing directly against OpenAI. The settlement text exchange suggests the lawsuit may be as much about competitive advantage as it is about OpenAI’s mission and structure.

FAQ

What is Elon Musk seeking in his lawsuit against OpenAI?
Musk wants to unwind OpenAI’s for-profit structure, make its technology publicly available, strip Microsoft’s licensing rights, and receive monetary damages plus legal fees. He claims OpenAI abandoned its nonprofit mission to benefit humanity in favor of profit maximization.

Why was Sam Altman briefly fired from OpenAI in November 2023?
The board stated Altman was “not consistently candid in his communications,” though specific details remained vague. Trial testimony from former CTO Mira Murati is providing the first concrete look at the events leading to his ouster and rapid reinstatement.

What was Musk’s relationship with OpenAI before the lawsuit?
Musk was a cofounder and early investor who contributed $38 million to OpenAI. He left the board in February 2018, shortly after attempting to recruit Sam Altman to join Tesla. Musk has since launched his own AI company, xAI, which competes with OpenAI.