Musk Testifies OpenAI 'Stole a Charity', Seeks $150B Damages and Demands Reversal of For-Profit Conversion

Gate News message, April 29 — Elon Musk took the stand Tuesday as the first witness in his lawsuit against OpenAI, alleging that the company’s conversion to a for-profit structure “stole a charity” and set “a precedent for looting charities across America if they succeed.” Musk is seeking $150 billion in damages and demanding the reversal of OpenAI’s for-profit transition. OpenAI is currently valued at approximately $730 billion.

During opening statements, Musk’s attorney Molo compared OpenAI to “a museum gift shop that robbed the museum and stole Picasso to profit from it.” OpenAI’s attorney Savitt countered with a “sour grapes” accusation, noting that Musk left in 2018 without objection to Microsoft’s $1 billion investment the following year, only to sue after ChatGPT’s explosive success. “My client had the courage to succeed without him, and Musk is unhappy,” Savitt said. The attorney then presented an email from Musk’s chief of staff from before his departure, proposing to give Musk’s for-profit entity 55% equity while allocating only 7.5% to Sam Altman.

Musk testified he was OpenAI’s driving force: “I came up with the name, hired key people, and raised funds.” He acknowledged participating in discussions about establishing a for-profit entity but insisted the bottom line was keeping the for-profit portion small, stating “the tail cannot wag the dog.” Musk claimed he left because other co-founders sought excessive equity in the for-profit structure, describing the process as “very annoying.” He also recounted OpenAI’s origins, explaining that Google co-founder Larry Page once called him a “species-ist” for favoring humanity over future digital life, which prompted Musk to create OpenAI to counterbalance Google.

Microsoft’s attorney Cohen argued that Musk continued donating during OpenAI’s for-profit setup and never objected, only filing suit after ChatGPT’s success. Cohen also revealed that Microsoft had no prior knowledge when the board fired Altman in 2023. Musk is scheduled to continue his testimony on Wednesday.