Here's a general summary of Elon Musk’s 3.5 hour long testimony today during day 2 of the OpenAI trial:
• Elon on Sam Altman & Greg Brockman: “If they wanna get rich, they should go do so as a for-profit. They should not get rich off a nonprofit. I gave them $38 million of essentially free funding to create what would become an $800 billion company.”
• Elon says he could’ve made OpenAI for-profit but chose nonprofit for AI safety
• Wanted initial ~51% control due to funding, but expected dilution over time
• Donated $10M+ and trusted assurances OpenAI would remain nonprofit
• Elon says his view of OpenAI evolved in three stages: first, he was “enthusiastically supportive.” Then, he became “a little uncertain” about whether the founders would keep it nonprofit. Now, he says he’s convinced “they’re looting the nonprofit.”
• Elon says he “I would have filed the lawsuit sooner if I thought they had stolen the charity sooner.”
• Left board in 2018 (Tesla/SpaceX commitments), still believing mission wouldn’t change
• Was not concerned by 2019 capped-profit shift at the time
• Elon feels the Microsoft partnership was a “bait and switch” and risked corporate control of AGI. When Microsoft invested $10B in OpenAI at the end of 2022, Elon sent a text to Sam asking, “What the hell is going on?” Elon became very concerned about OpenAI’s direction. Sam Altman responded to Elon's text with: “I agree this feels bad. We offered you equity when we established the cap profit, which you didn't want at the time. We are still very happy to do any time you’d like.”
Elon says "I didn’t understand how you could have stock in a nonprofit. It just didn't seem to make sense to me. Frankly, it felt like a bribe."
• Rejected equity offer from OpenAI, saying it didn’t make sense for a nonprofit, later called it a “bribe”
• Says he sued only after the “charity was actually violated,” not earlier concerns
• Denies seeking permanent control; says goal was ensuring AI goes in the “right direction”
• Early OpenAI relationships were positive, later deteriorated
• Elon criticized OpenAI as “not open” and effectively controlled by Microsoft
• OpenAI attorney asked Elon about the potential upcoming SpaceX IPO. Elon said that it would be illegal for him to comment on it before it actually goes public. When asked if he will control SpaceX after the IPO, Elon said: “Yes" and said he will still be CEO.
• Elon’s last $5M quarterly donation to OpenAI was in May 2017; he stopped covering office rent in 2020.
• OpenAI attorney on suggesting that xAI’s Grok lags far behind ChatGPT. Elon said, “Well, not anymore.” The OpenAI attorney asked, “It’s catching up, you think?” to which Elon replied, “Yeah.”
Elon will continue his testimony tomorrow.
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