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Altman Testifies on Tense 2017 Talks With Musk

Altman Testifies on Tense 2017 Talks With Musk

mercurynews.com
Friday, May 15, 2026
  • •Sam Altman testified that Elon Musk’s 2017 demands for total control over a planned for-profit entity were unsettling.
  • •Musk, who donated roughly $38 million of a pledged $1 billion, is suing for billions in damages and corporate restructuring.
  • •The trial highlights ongoing conflicts between Altman and Musk, including accusations of leadership misconduct and competitive sabotage.
  • •Sam Altman testified that Elon Musk’s 2017 demands for total control over a planned for-profit entity were unsettling.
  • •Musk, who donated roughly $38 million of a pledged $1 billion, is suing for billions in damages and corporate restructuring.
  • •The trial highlights ongoing conflicts between Altman and Musk, including accusations of leadership misconduct and competitive sabotage.

OpenAI CEO Sam Altman testified on May 12, 2026, regarding a 2017 conversation with Elon Musk, stating he felt extremely uncomfortable with the billionaire's demands for total control over a proposed for-profit subsidiary of the AI startup. Altman told jurors that when co-founders asked how that control would be handled upon his death, Musk suggested transferring it to his children, a proposal Altman found deeply concerning.

The testimony occurred during a high-profile trial where Musk accuses Altman and company president Greg Brockman of abandoning the nonprofit's original mission for personal gain. Musk, who initially pledged $1 billion to OpenAI, testified that he contributed approximately $38 million through donations and office rent before cutting funding and leaving the board in 2018. Altman countered that he contributed $3.75 million and significant equity interests to early employees, asserting that Musk failed to value the team's collaborative spirit.

Musk is currently seeking tens of billions of dollars in damages and the reversal of OpenAI’s conversion to a for-profit business, which was completed in October. The ongoing legal conflict follows mounting tensions between the two, including Musk’s unsolicited $97 billion offer to control OpenAI last year. In response, OpenAI has argued that the lawsuit is a tactical effort to undermine xAI, a company Musk founded to compete directly in the artificial intelligence sector.

Witness testimony throughout the trial has scrutinized the leadership styles of both individuals. Former OpenAI CTO Mira Murati described Musk as a source of organizational chaos, while noting that Altman also struggled with transparency. Additionally, former chief scientist Ilya Sutskever testified that he contemplated Altman’s leadership concerns for about a year prior to the board's decision to briefly oust him in 2023. Altman remains in his position as CEO after returning to the company five days following the incident.

OpenAI CEO Sam Altman testified on May 12, 2026, regarding a 2017 conversation with Elon Musk, stating he felt extremely uncomfortable with the billionaire's demands for total control over a proposed for-profit subsidiary of the AI startup. Altman told jurors that when co-founders asked how that control would be handled upon his death, Musk suggested transferring it to his children, a proposal Altman found deeply concerning.

The testimony occurred during a high-profile trial where Musk accuses Altman and company president Greg Brockman of abandoning the nonprofit's original mission for personal gain. Musk, who initially pledged $1 billion to OpenAI, testified that he contributed approximately $38 million through donations and office rent before cutting funding and leaving the board in 2018. Altman countered that he contributed $3.75 million and significant equity interests to early employees, asserting that Musk failed to value the team's collaborative spirit.

Musk is currently seeking tens of billions of dollars in damages and the reversal of OpenAI’s conversion to a for-profit business, which was completed in October. The ongoing legal conflict follows mounting tensions between the two, including Musk’s unsolicited $97 billion offer to control OpenAI last year. In response, OpenAI has argued that the lawsuit is a tactical effort to undermine xAI, a company Musk founded to compete directly in the artificial intelligence sector.

Witness testimony throughout the trial has scrutinized the leadership styles of both individuals. Former OpenAI CTO Mira Murati described Musk as a source of organizational chaos, while noting that Altman also struggled with transparency. Additionally, former chief scientist Ilya Sutskever testified that he contemplated Altman’s leadership concerns for about a year prior to the board's decision to briefly oust him in 2023. Altman remains in his position as CEO after returning to the company five days following the incident.

Read original (English)·May 12, 2026
#openai#sam altman#elon musk#lawsuit#for profit#xai