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Home » AI News » Musk mulled handing OpenAI to his children, Altman testifies
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Musk mulled handing OpenAI to his children, Altman testifies

CryptoAINewsBy CryptoAINewsMay 12, 2026No Comments3 Mins Read
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OpenAI CEO Sam Altman lastly took the stand this morning to defend himself in opposition to his former cofounder Elon Musk’s lawsuit difficult OpenAI’s company construction.

Altman was requested out of the gate what he considered Musk’s allegation that OpenAI’s different founders “stole a charity” after they launched a for-profit subsidiary to market merchandise primarily based on the corporate’s AI fashions.

“It feels troublesome to even wrap my head round that framing,” Altman mentioned after a number of seconds of silence. “We created one of many largest charities on this planet. This basis is doing unbelievable work and can do far more.”

Musk’s attorneys have been at pains to level out that OpenAI’s basis, which now has property on the order of $200 billion, didn’t have full-time staff till earlier this yr. OpenAI board chair Bret Taylor testified at the moment that was merely due to the problem of changing OpenAI fairness to money, which was completed with the group’s most up-to-date restructuring in 2025.

The central query posed by Musk’s legal professionals is whether or not the corporate’s dedication to security had been left behind as its industrial energy grew. However Altman mentioned that in 2017, throughout a pivotal interval when the founders wrestled with find out how to get hold of the funding to energy their AI fashions, Musk’s “particular plans on security made me fear.”

He described a “significantly hair-raising second” within the debate when Musk was requested what would occur if he died whereas controlling a hypothetical OpenAI for-profit. In Altman’s telling, Musk mentioned “perhaps OpenAI ought to cross to my youngsters.”

Altman mentioned that Musk’s give attention to controlling the preliminary for-profit gave him pause as a result of OpenAI was devoted to conserving superior AI out of the fingers of a single individual, and Altman, along with his expertise working the distinguished startup accelerator Y Combinator, knew “founders who had management normally didn’t give it up.”

Altman additionally testified that Musk’s administration techniques, which could have labored for engineering and manufacturing, did not work at OpenAI.

“I do not assume Mr. Musk understood find out how to run an excellent analysis lab,” Altman mentioned. “He had demotivated a few of our most key researchers. He had at one level required Greg and Ilya to make a listing of the researchers and listing out their accomplishments and stack rank them and take a chainsaw via a bunch. That did enormous injury for a very long time to the tradition of the group.”

Certainly, Altman solid himself as defending the “sweat fairness” of fellow cofounders Greg Brockman and Ilya Sutskever, the 2 folks successfully working OpenAI on the time whereas Musk and Altman had different jobs.

After that conflict went unresolved, Musk finally left OpenAI’s board and began competing AI initiatives at Tesla and his personal AI startup, xAI. However Altman stored in contact with the mercurial businessman, updating him on OpenAI’s work and searching for his funding and recommendation.

OpenAI’s legal professionals famous that Musk had been stored updated and requested to take part within the investments that his lawsuits now declare corrupted the non-profit.

Throughout one dialogue of a Microsoft funding into OpenAI in 2018, Altman mentioned that “not like a whole lot of conferences with Mr. Musk, this was an excellent vibes assembly,” the place Musk spent a “lengthy dialog exhibiting us memes on his telephone.”

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