AIMPACT Update, April 29 (UTC+8): According to monitoring by Beating, the trial in Elon Musk’s lawsuit against OpenAI entered the phase of opening statements and witness testimony on Tuesday. Musk testified as the first witness for the plaintiff, claiming that OpenAI’s shift toward profitability amounted to “stealing from a charity” and, if allowed, would set a dangerous precedent for the plundering of charitable organizations across the U.S. He is seeking $150 billion in damages and demands the reversal of OpenAI’s profit-making structure. OpenAI is currently valued at approximately $730 billion. The opening statements from both sides were sharply opposed. Musk’s attorney, Molo, compared OpenAI to “a museum shop stealing the museum’s Picasso paintings to profit from them.” OpenAI’s attorney, Savitt, countered that this was “sour grapes”: Musk raised no objection when Microsoft invested $1 billion in OpenAI the year after he left in 2018; he only changed his stance after ChatGPT became a sensation. “My client had the courage to succeed without him—and Musk is upset,” Savitt said. He presented in court an email from Musk’s former chief of staff prior to Musk’s departure, which proposed allocating 55% of the equity in the for-profit entity to Musk and only 7.5% to Altman. In his testimony, Musk described himself as a driving force behind OpenAI: “I named it, recruited key people, and secured funding.” He acknowledged participating in discussions about establishing a for-profit entity but insisted the core principle was that the profit-making portion must remain small: “The tail cannot wag the dog.” He said he ultimately left because other founders demanded excessive equity in the for-profit entity, calling the process “extremely frustrating.” He also recounted OpenAI’s origins: during a conversation with Google co-founder Larry Page, who called him a “speciesist” (favoring humans over future digital life), Musk decided to create OpenAI to counterbalance Google. Microsoft’s attorney, Cohen, stated that Musk continued to donate and never objected during the establishment of OpenAI’s for-profit entity—only filing suit after ChatGPT’s success. Cohen also revealed that Microsoft was completely unaware when Altman was removed by the board in 2023. Musk continued his testimony on Wednesday. (Source: BlockBeats)
Elon Musk Claims OpenAI 'Stole Charity' in Court, Emails Reveal Proposed 55% Equity Offer
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Summary
Elon Musk testified in court on April 29 that OpenAI’s shift to a for-profit model violates MiCA principles by “stealing a charity,” and he is seeking $150 billion in damages. Emails show Musk’s team proposed 55% equity for him, compared to 7.5% for Sam Altman. OpenAI is now valued at $730 billion. Musk’s lawyer compared the move to “a museum store stealing from the museum.” OpenAI’s lawyer accused Musk of becoming resentful after ChatGPT’s success. Microsoft’s lawyer noted that Musk continued funding OpenAI during the transition and filed the lawsuit only after its success. Musk will continue testifying on Wednesday. The case could influence future CFT and MiCA compliance in the AI and crypto sectors.
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