Musk v. Altman week 1: Elon Musk says he was duped, warns AI could kill us all, and admits that xAI distills OpenAI’s models


“I was a fool who provided them free funding to create a startup,” Musk told the jury. He said when he cofounded OpenAI in 2015 with Altman and Brockman, he was donating to a nonprofit developing AI for the benefit of humanity, not to make the executives rich. “I gave them $38 million of essentially free funding, which they then used to create what would become an $800 billion company,” he said.

Musk is asking the court to remove Altman and Brockman from their roles and to unwind the restructuring that allowed OpenAI to operate a for-profit subsidiary. The outcome of the trial could upend OpenAI’s race toward an IPO at a valuation approaching $1 trillion. Meanwhile, xAI is expected to go public as a part of Musk’s rocket company SpaceX as early as June, at a target valuation of $1.75 trillion.

This week’s testimony revolved around a central question of the trial: why Musk is suing OpenAI. Musk argued he was trying to save OpenAI’s mission to develop AI safely by restoring the company to its original nonprofit structure. OpenAI’s lawyer, William Savitt, who once represented Musk and his electric-car company Tesla, countered that Musk was “never committed to OpenAI being a nonprofit” and instead was suing to undermine his competitor. 

Who is the steward of AI safety?

During his direct examination early in the week, Musk painted himself as a longtime advocate of AI safety. He said he cofounded OpenAI to create a “counterbalance to Google,” which was leading the AI race at the time. He said that when he asked Google cofounder Larry Page what happens if AI tries to wipe out humanity, Page told him, “That will be fine as long as artificial intelligence survives.” 

“The worst-case scenario is a Terminator situation where AI kills us all,” Musk later told the jury.

Savitt stood at the lectern and argued that Musk was not a “paladin of safety and regulation.” As he cross-examined Musk in his sharp, surgical cadence, Savitt pointed out that xAI sued the state of Colorado in April over an AI law designed to prevent algorithmic discrimination. 



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