Musk accuses OpenAI of 'bait-and-switch' at Day 2 testimony
Elon Musk testified for a second day in his civil trial against OpenAI, Sam Altman, and Microsoft, accusing the defendants of executing a deceptive bait-and-switch regarding the artificial intelligence company's shift from a nonprofit to a for-profit entity. Musk argued that Microsoft's $10 billion investment in early 2023 signaled an intent to control the organization, which he feared would prioritize private gain over the original public-benefit mission of artificial general intelligence. During the proceedings in a federal court in California, Musk revealed that he texted Altman expressing shock and anger upon learning of the massive funding deal. He characterized the move as a betrayal, noting that Microsoft's financial motivation would inevitably differ from the charitable goals of a nonprofit. Musk, who co-founded OpenAI with Altman more than a decade ago before leaving in 2018, stated his primary concern was that Microsoft would effectively steer the development of AGI, a technology initiated as a charitable project. The trial centers on Musk's claim that OpenAI's leadership, including CEO Altman and President Greg Brockman, unjustly enriched themselves and their partners to the tune of hundreds of billions of dollars by abandoning their nonprofit roots. Musk, who contributed $38 million in seed funding over the years, alleges the company transformed into a market-dominant subsidiary of Microsoft. He emphasized that he did not sue following Microsoft's initial $1 billion investment in 2019 because he believed that deal operated under a capped profit structure, a condition he felt was violated by the 2023 arrangements. Microsoft's legal team countered these assertions during opening statements, arguing that Microsoft supported OpenAI's mission without seeking control. Attorney Russell P. Cohen told the jury that unlike Musk, Microsoft never attempted to dictate the company's direction. Musk reacted to this characterization by stating the defense was attempting to trick the jury. Under cross-examination by William Savitt, OpenAI's lead counsel, Musk further accused the attorney of using complex questions to mislead him and the court. Savitt, representing Altman and OpenAI, has characterized Musk's lawsuit as baseless, suggesting the plaintiff's true motivation was a failure to maintain control rather than a genuine concern for the company's mission. The legal team for the defendants described the transition to a for-profit model as a necessary evolution to secure the capital needed to compete in the global AI landscape. The trial is expected to continue with testimony from other tech industry leaders, including Sam Altman, Greg Brockman, and Microsoft CEO Satya Nadella. This high-stakes case highlights the growing tension between the idealistic origins of the AI industry and the realities of massive corporate investment and commercialization. As the proceedings unfold, the jury must weigh conflicting narratives regarding the intentions of OpenAI's founders and their key investors to determine whether the company's transformation was a strategic necessity or a breach of trust.
