Elon Musk accuses OpenAI, Sam Altman of betraying nonprofit roots in court trial

Elon Musk testified against OpenAI and CEO Sam Altman, alleging a shift from nonprofit goals to profit-driven motives. The case could impact AI governance, philanthropy norms, and competition in the global artificial intelligence sector

New Delhi: Tesla and xAI CEO Elon Musk has testified in a high-stakes trial against OpenAI, accusing the artificial intelligence firm and its CEO Sam Altman of abandoning the organisation’s founding nonprofit mission in favour of commercial interests.

Reports claim that the case in a federal court in Oakland centres on Musk’s claim that OpenAI deviated from its original goal of developing safe AI for the benefit of humanity and instead evolved into a profit-driven entity competing with major technology firms.

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During his testimony, Musk said he had backed OpenAI in its early years with the understanding that it would operate as a nonprofit and prioritise transparency and safety in AI development. The world’s top billionaire said any verdict, making it okay to “loot” a charity, could weaken the core of philanthropy in the US. He traced his interest in OpenAI to a belief that Google did not care about AI safety as it blazed ahead with the technology.

Moreover, he expressed concerns that a ruling in favour of OpenAI could set a precedent that undermines the principles of charitable organisations. Musk also told the US court that he played a major role in the early development of the company, including helping recruit talent and facilitating connections with major technology partners.

However, OpenAI has defended its structure and argued that the shift to a capped-profit model and external funding was necessary to meet the high costs associated with advanced AI research. The company has maintained that its nonprofit arm continues to retain overall control.

The dispute marks a deepening rift between Musk and the organisation he co-founded in 2015. Notably, Musk exited the company in 2018, after which OpenAI established a commercial subsidiary and attracted significant investment, including from Microsoft. Since then, OpenAI has emerged as a major player in the global AI race, driven by the success of its chatbot ChatGPT.

Musk later launched his own AI venture — xAI — and has sought legal remedies, including structural changes at OpenAI, though he has indicated that any financial compensation awarded would not be for personal gain. The court is expected to deliver its decision in the coming weeks, a ruling that could have broader implications for the governance and funding models of AI companies.