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    Home»Startups»Elon Musk tells court he ‘didn’t read the fine print’ on OpenAI term sheet
    Startups

    Elon Musk tells court he ‘didn’t read the fine print’ on OpenAI term sheet

    Editor Times FeaturedBy Editor Times FeaturedMay 1, 2026No Comments4 Mins Read
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    Elon Musk has wrangled with Sam Altman’s lawyer over the timing ‌of his choice to sue OpenAI and whether or not he knew about discussions to show it right into a for-profit firm, as he was cross-examined in a trial over his lawsuit that would decide the way forward for the ChatGPT maker.

    The world’s richest ‌individual alleges OpenAI, its co-founder and CEO Sam Altman and its president Greg Brockman wooed his $US38 million ($A53 million) in donations and private assist by promising to construct a nonprofit that will prioritise secure improvement of AI, earlier than pivoting to create a for-profit entity ‌to counterpoint themselves.

    William Savitt – a lawyer for OpenAI, Altman and Brockman – pressed Musk on whether or not he had learn a time period sheet that Altman forwarded on August 31, 2017, referring to OpenAI’s shift from a nonprofit to a for-profit overseen by a nonprofit.

    “My testimony is I didn’t learn the advantageous print, simply the headline,” mentioned Musk, carrying a darkish swimsuit, darkish strong tie and white shirt.

    ‘ A compulsion to regulate’

    OpenAI has mentioned Musk, the CEO of Tesla and SpaceX, is pushed by a compulsion to regulate OpenAI and is bitter concerning the firm’s success after he left its board in 2018. They’ve additionally mentioned he didn’t prioritise issues of safety whereas with the corporate, and that he’s making an attempt to bolster his ‌personal AI firm, SpaceX unit ‌xAI, which lags OpenAI in person ⁠adoption.

    OpenAI spearheaded widespread use of AI with its ChatGPT chatbot and has been elevating billions of {dollars} from buyers to construct out its computing energy ​forward of a possible trillion-dollar IPO. Musk is looking for elementary modifications to the governance of the corporate in addition to $150 billion in damages.

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    At occasions, Musk expressed frustration with Savitt’s cross-examination.

    “Few solutions are going to be full, particularly whenever you lower me off on a regular basis,” Musk mentioned.

    US District Decide Yvonne Gonzalez Rogers later admonished Savitt for not letting Musk reply a query, however rejected Musk’s complaints that the lawyer was main the questioning.

    Musk was requested why he didn’t sue OpenAI earlier, in addition to how and why he didn’t realise it was going to grow to be a for-profit entity. Savitt repeatedly pointed to emails despatched to Musk from different OpenAI founders that present them discussing making OpenAI’s know-how closed-source ⁠in some unspecified time in the future or earning money from it.

    “I used to be reassured by Sam Altman and others that OpenAI would proceed as a ‌nonprofit,” Musk mentioned.

    Beneath questioning, Musk ​additionally mentioned his firm xAI used OpenAI to coach its personal fashions, including: “It’s normal follow to make use of different AIs to validate your AI.”

    Altman and Brockman had been within the courtroom for a lot of Musk’s testimony, watching intently. Musk was dismissed ​after greater than two hours of questioning, adopted by his high aide Jared Birchall taking the stand.

    OpenAI, based in 2015, has developed from a nonprofit analysis lab in Brockman’s residence to an organization value greater than $US850 billion that’s planning a possible preliminary public providing.

    Musk is looking for the $US150 billion in damages from OpenAI and Microsoft, certainly one of its largest buyers, with proceeds going to OpenAI’s charitable arm. Musk ​additionally ​needs OpenAI to revert to being a nonprofit, with Altman and Brockman eliminated as officers and Altman ​faraway from its board. Musk’s claims embrace breach of charitable belief and unjust enrichment.

    The trial began ​on Monday and is anticipated to final a number of weeks.

    NOW READ: How the future of AI is at stake in the legal fight between Elon Musk and OpenAI’s Sam Altman



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