Elon Musk Claims OpenAI Was His Idea Before Executives ‘Looted’ It

Elon Musk took the stand on Tuesday in a high-stakes trial over the future of OpenAI, presenting his lawsuit against the ChatGPT maker as a defence of charitable giving.

The world’s richest person is suing OpenAI, its co-founder and Chief Executive Sam Altman, and its President Greg Brockman, alleging they betrayed him and the public by abandoning the organisation’s original mission to serve as a benevolent steward of artificial intelligence for humanity, and by transforming it from a non-profit into a profit-driven enterprise.

“If we make it OK to loot a charity, the entire foundation of charitable giving in America will be destroyed,” Musk testified on the first day of proceedings. “That’s my concern.”

Musk, who founded Tesla and SpaceX, also described OpenAI as his own creation.

“I came up with the idea, the name, recruited the key people, taught them everything I know, provided all of the initial funding,” he said. “It was specifically meant to be a charity that does not benefit any individual person. I could have started it as a for-profit and I specifically chose not to.”

Before Musk’s testimony, William Savitt, a lawyer for OpenAI and Altman, told jurors in his opening statement that it was Musk who saw commercial opportunity while helping finance OpenAI’s early development, and who pushed for it to become a for-profit business—one he might eventually lead as chief executive.

Savitt said Musk wanted “the keys to the kingdom” and only brought the case after failing to secure control. In 2023, Musk launched his own artificial intelligence company, xAI, now integrated into SpaceX.

“What he cares about is Elon Musk being on top,” Savitt said. “We are here because Mr Musk didn’t get his way.”

OpenAI’s legal team also argued that the creation of a for-profit arm in 2019 was essential to raising computing power and retaining top scientists in order to compete with Google’s DeepMind lab.

Musk’s lawyer, Steven Molo, countered that OpenAI’s leadership had become driven by financial interests, pointing to major investment from Microsoft, which injected $10 billion in early 2023.

“It wasn’t a vehicle for people to get rich,” Molo said.

Musk is seeking $150 billion in damages from OpenAI and Microsoft, with proceeds intended for OpenAI’s charitable arm. He is also seeking to force OpenAI to revert to a non-profit structure, remove Altman and Brockman from leadership positions, and bar Altman from its board. His claims include breach of charitable trust and unjust enrichment.

While Musk has described OpenAI as a charity, the organisation referred to itself as a non-profit artificial intelligence research company in its 2015 introduction.

Before the jury was seated, US District Judge Yvonne Gonzalez Rogers admonished Musk after OpenAI’s lawyers raised concerns over his posts on X, in which he referred to Altman as “Scam Altman” and accused him of stealing a charity.

The judge said she was reluctant to impose a gag order but urged Musk to “try to control your propensity to use social media to make things work outside the courtroom”.

Musk agreed to limit his social media activity, as did Altman. Microsoft chief executive Satya Nadella is also expected to testify.

The trial offers a rare insight into the personalities behind OpenAI’s transformation from a small research lab in Greg Brockman’s apartment into a company now valued at more than $850 billion.

It also comes at a critical moment for the firm, potentially complicating plans for a future initial public offering and heightening broader concerns about the governance of artificial intelligence.

Musk and Altman co-founded OpenAI in 2015 with the aim of developing AI for the benefit of humanity and countering rivals such as Google.

Musk told the court he had long-standing concerns about artificial intelligence, which intensified after discussions with former US President Barack Obama and others failed to adequately address the risks.

Savitt, however, argued that AI safety was not Musk’s primary concern, alleging he had dismissed employees focused on safety issues.

Musk said he contributed around $38 million to OpenAI in its early years and helped secure computing resources through contacts at Nvidia and elsewhere.

OpenAI established its for-profit structure 13 months after Musk left its board.

Microsoft’s lawyer, Russell Cohen, said the company had acted appropriately throughout its involvement, describing it as “a responsible partner every step of the way”.

OpenAI now faces increasing competition from rivals such as Anthropic and continues to invest heavily in computing infrastructure. A potential IPO could value the company at up to $1 trillion, according to reports.

Musk’s xAI remains significantly smaller in terms of usage but is now part of his wider corporate ecosystem, including SpaceX, which itself could pursue a major listing.

Late last year, OpenAI restructured again into a public benefit corporation, with its non-profit arm retaining a 26 per cent stake alongside other investors, including Microsoft, with additional warrants linked to future valuation targets.

 

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