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Elon Musk and Sam Altman, two prominent figures in the tech industry, are set to engage in a legal showdown that highlights accusations of betrayal, deceit, and unchecked ambition, which have strained their once collaborative efforts toward advancing artificial intelligence.
The trial, commencing Monday with jury selection, focuses on the 2015 inception of OpenAI, the creator of ChatGPT. Originally launched as a nonprofit with substantial funding from Musk, OpenAI has since transformed into a profit-driven enterprise now boasting a valuation of $852 billion.
The verdict could significantly impact the future of AI, a cutting-edge technology increasingly viewed with concern due to its potential to disrupt employment and pose existential risks to humanity.
These concerns are among the reasons Musk, currently the wealthiest individual globally, initiated a lawsuit in August 2024. The case will be adjudicated by a jury and US District Judge Yvonne Gonzalez Rogers in Oakland, California.
The lawsuit accuses Altman, OpenAI’s CEO, alongside his key associate Greg Brockman, of betraying Musk by deviating from the company’s original mission. It alleges that they shifted the San Francisco-based organization towards profit-driven goals without Musk’s knowledge.
OpenAI has brushed off Musk’s allegations as an unfounded case of sour grapes that’s aimed at undercutting its rapid growth and bolstering Musk’s own xAI, which he launched in 2023 as a competitor.
Trial promises clashing testimony from two tech titans
Musk, who invested about $38 million in OpenAI from December 2015 through May 2017, initially was seeking more than $100 billion in damages.
But any damages now are likely to be much smaller after a series of pre-trial rulings that went against Musk. Musk has since abandoned a bid for damages for himself and instead is seeking an unspecified amount of money to be paid to fund the altruistic efforts of OpenAI’s charitable arm. The money would be paid primarily by OpenAI’s for-profit operations, and Microsoft, which became the company’s biggest investor after Musk cut off his funding.
Musk’s lawsuit also seeks Altman’s ouster from OpenAI’s board. Musk’s decision to stop funding the company contributed to a bitter falling out between the former allies. Musk says he was responding to deceptive conduct that OpenAI’s board picked up on when it fired Altman as CEO in 2023 before he got his job back days later.
But the trial also carries risks for Musk, who last month was held liable by another jury for defrauding investors during his $44 billion takeover of Twitter in 2022. Any damaging details about Musk and his business tactics could be particularly hurtful now because his rocket ship maker, SpaceX, plans to go public this summer in an initial public offering that could make him the world’s first trillionaire.
However it turns out, the trial is expected to provide riveting theater, with contrasting testimony from two of technology’s most influential and polarizing figures in the 54-year-old Musk and the 41-year-old Altman.
“Part of this is about whether a jury believes the people who will testify and whether they are credible,” Gonzalez Rogers said during a court hearing earlier this year while explaining why she believe the case merited a trial. The judge will make the final decision on the case, with the jury serving in an advisory role.
Evidence has included glimpses of the AI race’s early days
Musk, whose estimated fortune stands at about $780 billion, has long been hailed as a visionary for his roles creating digital payment pioneer PayPal, electric automaker Tesla and rocket ship maker SpaceX. But he has also provoked backlashes with his social media commentary, unfulfilled promises about Tesla’s self-driving technology and his cost-cutting role last year in President Donald Trump’s administration.
Some of Musk’s erratic behavior has been tied to allegations of taking hallucinogenic drugs, but Gonzalez Rogers ruled that he can’t be asked during the trial about his suspected use of ketamine. But the judge is allowing Musk to be questioned about his attendance at the 2017 Burning Man festival in Nevada, a free-wheeling celebration known for widespread drug use. The judge is also allowing Musk to be questioned about his relationship with former OpenAI board member Shivon Zilis, the mother of several of his children.
Altman, currently sitting on a roughly $3 billion fortune, didn’t emerge in the public consciousness until the late 2022 release of ChatGPT. The tech boom triggered by that conversational chatbot has led some to liken Altman to a 21st-century version of the nuclear bomb inventor, J. Robert Oppenheimer.
Although Altman was initially hailed as trailblazer he is now facing blowback amid worries about AI’s potential dangers. Earlier this month, the New Yorker magazine published a profile that painted him as an unscrupulous executive. Days later, a 20-year-old man worried about AI’s effect on humanity was arrested on attempted murder charges after throwing a Molotov cocktail at Altman’s San Francisco home.
The dueling testimonies of Altman and Musk are expected to open a window into some of the thinking that helped trigger the AI race, as well as the unraveling of their friendship. The kinship was forged in 2015 when they agreed to build AI in a more responsible and safer way than the profit-driven companies controlled by Google co-founders Larry Page and Sergey Brin and Facebook founder Mark Zuckerberg, according to evidence submitted ahead of the trial.
Details of the bitter break between the two men were captured in a February 2023 email exchange that surfaced as part of the evidence leading up to the trial.
After letting Musk know “you’re my hero,” Altman tells him: “I am tremendously thankful for everything you’ve done to help —I don’t think OpenAI would have happened without you — and it really (expletive) hurts when you publicly attack OpenAI.”
Musk’s response: “I hear you and it is certainly not my intention to be hurtful, for which I apologize, but the fate of civilization is at stake.”