OpenAI CEO Sam Altman testified May 12 that Elon Musk sought 90% equity and abandoned the nonprofit, rebutting Musk's "stolen charity" lawsuit in federal court.
OpenAI CEO Sam Altman testified for approximately four hours on May 12 in federal court in Oakland, telling a jury that Elon Musk sought a 90% equity stake in OpenAI, attempted to seize sole control of the organization, and effectively "left the nonprofit for dead" after departing the board in 2018 [1]. Altman denied that he ever promised Musk the company would remain a nonprofit in perpetuity, directly undercutting the central premise of Musk's lawsuit [2]. Altman told the jury that OpenAI's conversion to a for-profit structure was a financial necessity, not a betrayal of the company's founding mission, because only a capitalized commercial entity could safely develop artificial general intelligence at the required scale [1].
The testimony came during trial before Judge Yvonne Gonzalez Rogers in the U.S. District Court for the Northern District of California [1]. Musk filed the underlying lawsuit alleging, among other claims, that Altman and OpenAI's leadership breached fiduciary duties owed to OpenAI's original charitable mission and, in effect, converted a public charity for private gain [2]. Musk's legal team, led by attorney Steven Molo, used cross-examination to challenge Altman's credibility, pointing to critical statements attributed to former colleagues including Dario Amodei and former board members who had previously raised concerns about Altman's leadership [2].
The stakes of the proceeding extend well beyond this dispute between two named parties. OpenAI's pending restructuring carries an approximate $852 billion valuation, and a ruling adverse to OpenAI could impose legally binding constraints on how the company reorganizes its corporate form [3]. More broadly, the case is developing a body of precedent on the legal obligations that attach when a nonprofit technology organization converts to a for-profit structure, a question that has no settled federal framework and that will affect AI developers undertaking similar transitions [3].
Altman's testimony was not complete as of the initial session, and additional examination, including redirect, remained pending [1]. The trial is expected to continue in the days following May 12, with attention focused on whether Musk's legal team can introduce documentary evidence from OpenAI's early governance records to impeach Altman's account of the founding-era commitments [2]. Judge Gonzalez Rogers, who has presided over high-profile technology disputes including antitrust litigation against Apple, retains authority to rule on evidentiary disputes that could shape what the jury ultimately considers [1].
—