Musk vs. OpenAI Trial Concludes with Explosive Revelations of Internal Dealings

The lawsuit filed by Elon Musk against OpenAI has completed its first round of court proceedings, entering the stage of closing arguments. Over the past three weeks, several major figures in the AI industry, including Musk, OpenAI CEO Sam Altman, OpenAI President Greg Brockman, former Chief Scientist Ilya Sutskever, and Microsoft CEO Satya Nadella, appeared as witnesses. More than ten witnesses delivered bombshell testimonies, and numerous internal documents were disclosed. Starting next week, a nine-member jury will deliberate to issue an advisory verdict. Regardless of the outcome, the trial has already exposed OpenAI’s internal workings on a global scale.

Musk’s Claim: “OpenAI Would Not Exist Without Me”

The origins of the lawsuit trace back to a 2015 birthday party for Musk. During the event, Musk and Google co-founder Larry Page had a heated debate about AI safety, leading to a fallout. Following this, Musk resolved to create a counter-organization dedicated to non-profit and open-source AI research, citing concerns that AI could potentially threaten humanity.

In court, Musk claimed, “OpenAI would not exist without me.” He explained that he personally named the organization “OpenAI,” donated $38 million, provided a free office, and gifted Tesla Model 3 cars to all founding members. Moreover, Musk revealed that he convinced Google’s AI researcher Ilya Sutskever to join OpenAI, secured the first DGX-1 supercomputer from NVIDIA CEO Jensen Huang, and arranged computational resources from Microsoft CEO Satya Nadella.

However, by around 2017, OpenAI began grappling with severe financial issues. The organization started exploring a shift to a for-profit model. While Musk agreed to the establishment of a for-profit subsidiary, he demanded absolute control. He proposed securing a majority on the board or even integrating OpenAI into Tesla, but these moves faced strong opposition from other co-founders. Ultimately, Musk stepped down in early 2018, citing conflicts of interest.

Brockman’s Diary Exposes “Lies”

In the second week of the trial, Musk’s team presented a crucial piece of evidence: the private diary of OpenAI co-founder and President Greg Brockman. In an entry dated November 2017, Brockman wrote, “Unbelievable. We promised to remain non-profit, but if we turn into a for-profit company in three months, that would be a lie.” He also penned, “This is our only chance to break away from Musk.”

It was further revealed that Altman had funneled $10 million to Brockman via his family fund, a financial relationship that Brockman had failed to disclose. While Brockman admitted the authenticity of the diary in court, he emphasized the context. He also testified that the current value of his shares in OpenAI’s for-profit subsidiary is approximately $30 billion. When Musk’s lawyer asked him why he hadn’t returned the shares to the non-profit foundation, Brockman avoided giving a direct answer.

The Most Controversial Witness: Shivon Zilis

Shivon Zilis, a subordinate of Musk, was also an OpenAI board member and the mother of four of Musk’s children through artificial insemination. OpenAI’s lawyers accused Zilis of acting as Musk’s “eyes” within the organization, passing along information and assisting in recruitment efforts. When asked, “Where does your loyalty lie?” Zilis replied, “My loyalty lies with achieving the best outcomes for humanity through AI.”

It also came to light that in 2023, Zilis personally cast her vote to approve Microsoft’s $10 billion investment in OpenAI—a deal Musk has criticized as “stealing a public good.” OpenAI’s legal team argued that Zilis’s vote was evidence that even Musk’s most trusted ally found no issues with the transaction.

Sutskever’s Rebellion: The Architect of Altman’s Downfall

Former Chief Scientist Ilya Sutskever testified that his shares in OpenAI’s for-profit subsidiary are worth approximately $7 billion. Alongside Brockman’s $30 billion holdings, Musk’s lawyers criticized the structure, claiming it created billionaires under the guise of a non-profit organization.

Sutskever also admitted to being the mastermind behind OpenAI’s board’s sudden decision to oust Altman in November 2023. Over the course of a year, Sutskever systematically collected evidence of Altman’s alleged misconduct and collaborated with then-CTO Mira Murati. Murati testified in court, stating that “Altman consistently acted dishonestly, undermined my authority, and incited internal conflicts among executives.” It was also revealed that the remaining board members had been in contact with rival AI company Anthropic following Altman’s dismissal.

This trial has laid bare the power struggles within the AI industry and the process by which the ideals of a non-profit organization were overshadowed by commercial interests. The jury’s verdict is eagerly awaited.