Sam Altman testified that no promise was made to keep OpenAI a nonprofit and that Elon Musk abandoned the company by failing to meet funding commitments.
OpenAI CEO Sam Altman testified May 12 in federal court in Oakland that he never made a binding promise to keep OpenAI a nonprofit in perpetuity and that Elon Musk, not the company's leadership, walked away from the organization after failing to fulfill funding commitments [1]. Altman told the jury that OpenAI's nonprofit structure was effectively "left for dead" before the company pursued its current restructuring path [2]. The testimony marked the most direct public account Altman has given of the founding-era disputes at the center of the litigation.
The case, Musk v. Altman et al., is before a federal court in the Northern District of California. Musk filed suit alleging that OpenAI breached foundational commitments to operate as a nonprofit for the public benefit rather than as a for-profit commercial enterprise. On cross-examination, Musk's lead counsel Steven Molo pressed Altman on questions about his candor, pointing to concerns raised by former OpenAI board members and business partners regarding Altman's truthfulness [1]. Two former board members, Helen Toner and Tasha McCauley, also took the stand and testified that they had harbored concerns about Altman's honesty during their tenures [1].
The testimony carries significance beyond the immediate dispute. Altman's account of the 2023 boardroom episode, in which the OpenAI board briefly ousted him before reinstating him within days, surfaced internal governance dynamics that had not previously been disclosed in detail in a public forum [2]. The trial arrives as OpenAI pursues a planned conversion to a for-profit public benefit corporation, a restructuring that sits at the legal core of Musk's claims. Corporate governance experts and charity-law practitioners have watched the case closely because a plaintiff verdict could impose constraints on how mission-driven technology companies convert legal structures [2]. Microsoft, a major OpenAI investor, has a direct financial stake in the outcome of any ruling that touches the terms of that conversion [1].
What comes next includes continued witness testimony and potential examination of OpenAI co-founder Greg Brockman, whose name appears in the list of key figures connected to the founding commitments at issue [1]. Microsoft CEO Satya Nadella has also been identified as a potential witness given Microsoft's investment relationship with OpenAI [1]. Closing arguments have not been scheduled publicly. A verdict for Musk could force OpenAI to unwind or substantially modify its restructuring, with cascading consequences for the company's financing and its path to an IPO [2].