Sam Altman Rejects Elon Musk's 'Stealing A Charity' Claim In Explosive Openai Trial

(MENAFN- Live Mint) Sam Altman on Tuesday (May 12) pushed back strongly against allegations by Elon Musk that he betrayed OpenAI's founding mission, as a high-stakes courtroom battle over the future of the ChatGPT maker unfolded in California.

The closely watched federal trial in Oakland could reshape the governance and leadership of OpenAI, one of the world's most influential artificial intelligence companies.

Musk accuses OpenAI of abandoning nonprofit mission

Musk sued OpenAI and its leadership in August 2024, alleging that Altman and OpenAI President Greg Brockman convinced him to contribute $38 million to a nonprofit AI initiative meant to benefit humanity, only for the organisation to later pursue a profit-driven model.

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.5 QUESTIONS1What is Elon Musk accusing Sam Altman and OpenAI of?⌵

Elon Musk is accusing Sam Altman and OpenAI of betraying the company's founding mission. He alleges they convinced him to contribute to a nonprofit AI initiative, only for OpenAI to later pursue a profit-driven model and become a commercial enterprise.

2How does Sam Altman respond to Elon Musk's "stealing a charity" claim?⌵

Sam Altman strongly denies the allegation, stating that the framing of "stealing a charity" does not fit what is happening. He argues that OpenAI's nonprofit structure still benefits significantly from the company's future success.

3Did Elon Musk know about OpenAI's potential for-profit structure?⌵

OpenAI's legal team contends that Elon Musk was aware of discussions about creating a for-profit structure. Sam Altman testified that he was uncomfortable with Musk's demands for greater authority within OpenAI.

4What is Ilya Sutskever's testimony regarding Elon Musk and OpenAI's nonprofit status?⌵

Ilya Sutskever testified that he never promised Elon Musk that OpenAI would permanently remain a nonprofit organization. He stated that the mission of OpenAI is larger than its nonprofit or for-profit structure.

5What is Elon Musk seeking in his lawsuit against OpenAI?⌵

Elon Musk is seeking approximately $150 billion in damages from OpenAI and Microsoft. The lawsuit also aims to remove Sam Altman and Greg Brockman from their leadership positions at OpenAI.

Musk claims OpenAI abandoned its original mission and instead evolved into a powerful commercial enterprise backed by major technology investors.

Altman rejects accusation of 'stealing a charity'

During testimony in federal court, Altman firmly denied Musk's allegation that OpenAI leaders had effectively“stolen a charity.”

“It feels difficult to even wrap my head around that framing,” Altman told the court.

He added:“It does not fit with my concept of the words 'stealing a charity' to look at what is happening here.”

Altman argued that OpenAI's nonprofit structure still stands to benefit significantly from the company's future success.

“As OpenAI continues to do well, the nonprofit will do even better,” he said.

OpenAI says company structure evolved over time

Altman also disputed suggestions that OpenAI was fundamentally Musk's creation.

According to Altman, the organisation explored multiple corporate structures during its early years, including both nonprofit and for-profit possibilities.

“At the time we had no conception we would someday have profits or revenue,” Altman testified.

The remarks form part of OpenAI's broader defence that the company's evolution reflected changing technological and financial realities rather than a betrayal of its founding principles.

OpenAI claims Musk wanted control

OpenAI's legal team has argued that Musk was aware of discussions about creating a for-profit structure but later became dissatisfied after losing influence over the company.

Altman testified that he was uncomfortable with Musk's demands for greater authority within OpenAI.

“I was extremely uncomfortable” with Musk's demand for control, Altman said.

OpenAI contends that Musk's lawsuit stems partly from frustration over missing out on the massive financial upside generated by the AI boom.

OpenAI chairman questions Musk takeover bid

OpenAI chairman Bret Taylor also testified on Tuesday, revealing that OpenAI received a formal takeover proposal in February 2025 from a consortium led by Musk's AI company xAI.

Taylor said the proposal appeared contradictory given Musk's legal claims about protecting OpenAI's nonprofit mission.

“I was surprised,” Taylor testified.

He continued:“This proposal was to acquire this non-profit by a group of for-profit investors, which felt contradictory to the spirit of the lawsuit.”

Musk seeks damages and leadership removal

Musk is seeking roughly $150 billion in damages from OpenAI and Microsoft, which has invested heavily in OpenAI's infrastructure and AI development.

The lawsuit also seeks the removal of Altman and Brockman from leadership positions.

The case has become one of Silicon Valley's most closely watched legal battles, pitting two of the AI industry's most prominent figures against each other.

Witnesses describe tensions inside OpenAI

The trial has also featured testimony from several high-profile figures connected to OpenAI.

Former OpenAI chief scientist Ilya Sutskever testified that he spent nearly a year collecting evidence suggesting Altman showed a“consistent pattern of lying.”

Meanwhile, Satya Nadella described Microsoft's investment in OpenAI as a“calculated risk.”

Other witnesses have included former OpenAI technology chief Mira Murati and former OpenAI board member Shivon Zilis.

Musk warns about AI leadership risks

Musk, who testified earlier in the proceedings, framed the dispute as a matter of public safety and AI governance.

“If you have someone who is not trustworthy in charge of AI, I think that's a very big danger for the whole world,” Musk told the court.

He also maintained that OpenAI originated from his vision before shifting away from its nonprofit roots.

According to Musk, Altman had assured him that OpenAI would remain a nonprofit organisation even as discussions about commercialisation emerged.

Trial could shape OpenAI's future

The case is being overseen by US District Judge Yvonne Gonzalez Rogers.

Testimony is expected to conclude this week, with jurors potentially beginning deliberations by May 18 on whether OpenAI executives are legally liable.

Any remedies or penalties would ultimately be determined by the judge.

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