Sam Altman Defends OpenAI's Path from Nonprofit to For-Profit in Musk Trial
Sam Altman Defends OpenAI's Path from Nonprofit to For-Profit in Musk Trial
Sam Altman, CEO of OpenAI, took the witness stand on May 12 in federal court in Oakland to defend his leadership and the company's shift from a nonprofit research lab into a commercial enterprise. His testimony came during cross-examination by lawyers for Elon Musk, who is suing OpenAI over claims the company abandoned its original mission to develop safe artificial intelligence.
Altman described himself as an "honest and trustworthy businessperson" and rejected Musk's assertion that OpenAI and Microsoft had tried to "steal a charity," according to Axios.
What the Lawsuit Is About
Musk filed this lawsuit in 2024, claiming that Altman, OpenAI co-founder Greg Brockman, and Microsoft abandoned the organization's original goal of building AI systems that would benefit humanity. Musk wants Altman removed from his leadership position.
The two men co-founded OpenAI together in 2015, but tensions emerged as the company evolved. During his testimony, Altman said he believed Musk wanted to take control of OpenAI and that Musk had suggested merging the lab into Tesla—a move that would have dissolved its nonprofit status, which Altman preferred to maintain.
Altman characterized Musk as someone who "did not keep his promises and eventually deserted OpenAI as it was trying to chart out an uncertain future," according to CNBC.
The Money at Stake
Court documents revealed an expert valuation that Musk could be entitled to somewhere between 50% and 75% of OpenAI's current nonprofit value based on his early role in founding the organization. This calculation considered both his direct investments and his contributions to building the lab in its early days. The figure underscores how much money hangs on the outcome of this trial.
Leadership Questions
Altman was also questioned about his brief removal as CEO in November 2023, when the OpenAI board fired him before quickly rehiring him after employee and investor backlash. He defended his personal investing activities as well, which have drawn attention given his position at the head of one of the world's most valuable AI companies.
The broader question the trial is examining is whether OpenAI can keep its nonprofit status now that it has transformed into a commercial business with major backing from Microsoft.
Musk testified on April 29 before Altman took the stand. U.S. District Judge Yvonne Gonzalez Rogers is overseeing the case, which began with jury selection on April 28. The trial is expected to run for three weeks.
What This Case Means Beyond the Courtroom
This lawsuit fits a pattern we have seen repeatedly in technology history: co-founders and early collaborators end up in conflict as their company grows and the original mission shifts to meet commercial realities. The clash between Apple's founding team, disputes that erupted at Facebook, and the conflicts that emerged at Twitter all followed similar trajectories.
The OpenAI dispute also exposes a genuine tension in AI development: the gap between research-focused missions—which emphasize safety and the public good—and the enormous cost of building cutting-edge AI systems, which requires steady commercial investment. OpenAI's transformation mirrors a broader challenge across the AI industry.
What sets this case apart is its timing and focus. It centers directly on how an AI organization should balance its founding mission with the practical realities of raising and spending billions of dollars to build advanced AI systems. The jury's decision may shape how other AI research organizations structure themselves and make decisions about commercialization in the years ahead.
