Elon Musk has told a court he did not read the “fine print” on plans linked to OpenAI becoming a for-profit company, saying he relied on assurances it would remain a non-profit.
Giving evidence during cross-examination on Thursday, Musk said he was aware of early discussions but believed the organisation would continue its original structure.
“My testimony is I didn’t read the fine print, just the headline,” he said.
The case centres on Musk’s lawsuit against OpenAI, its chief executive Sam Altman and president Greg Brockman. He alleges they secured his $38m in donations and support by promising to build a non-profit focused on safe AI development, before shifting direction.
A lawyer for OpenAI, William Savitt, questioned Musk about a 2017 term sheet outlining a transition to a for-profit structure overseen by a non-profit.
Musk said he had been reassured by Altman and others at the time.
“I was reassured by Sam Altman and others that OpenAI would continue as a nonprofit,” he told the court.
The trial, now in its third day in a California courtroom, could shape the future of OpenAI. The company is behind ChatGPT and has attracted billions of dollars in investment as it expands its computing capacity ahead of a possible public listing.
Musk is seeking changes to OpenAI’s governance and $150bn in damages.
OpenAI has rejected his claims. It says Musk is trying to gain control of the company and is unhappy with its success after leaving its board in 2018. The company also says he is promoting his own AI venture, xAI.
During the hearing, Musk at times expressed frustration with the questioning.
“Few answers are going to be complete, especially when you cut me off all the time,” he said.
US District Judge Yvonne Gonzalez Rogers later criticised the lawyer for interrupting but dismissed Musk’s complaint that the questioning was leading.
Musk was also asked why he had not taken legal action earlier and whether he should have been aware of the shift to a for-profit model.
He told the court the for-profit arm now holds most of OpenAI’s value.
“The for-profit is overwhelmingly where the value is. The for-profit has taken the super majority of the value of the nonprofit,” he said.
Musk also said his company xAI had used OpenAI systems to train its own models.
“It is standard practice to use other AIs to validate your AI,” he said.
Musk was dismissed after more than two hours of questioning. His aide, Jared Birchall, later took the stand.
Faridah Abdulkadiri
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