Musk Calls Himself Fool for OpenAI Early Funding
Elon Musk stated during testimony that he made a mistake by providing initial funding to OpenAI. This came on the second day of a federal trial in Oakland, California, where Musk faces off against OpenAI, two of its co-founders, and Microsoft. Musk accused OpenAI CEO Sam Altman of misleading him, while OpenAI's attorney argued that evidence points the other way.
Musk's cross-examination turned sharp as OpenAI's lawyer questioned him. The trial, set to last about a month, centers on Musk's claim that OpenAI violated its original nonprofit agreement. Reporters Cade Metz and Mike Isaac covered the events from the Oakland courtroom.
Busy Year for Musk in 2018
The year 2018 proved demanding for Musk. Tesla faced production issues with its electric vehicles. Musk proposed taking the company private, which drew regulatory scrutiny. SpaceX began gaining traction with its rocket launches. Meanwhile, OpenAI, the AI research lab Musk helped start as a nonprofit, received little of his focus.
Musk admitted he lacked time even for board meetings. OpenAI leaders discussed adding a for-profit entity to support the nonprofit mission. Musk supported the idea as long as the nonprofit retained control. He now wishes he had engaged more before departing in early 2018. OpenAI, founded in 2015 by Musk, Altman, Greg Brockman, and others, aimed to develop safe artificial general intelligence outside big tech control like Google's.
Regrets Over Funding and Exit
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Musk expressed deep regret over his financial support. Responding to his attorney Steven Molo, Musk said, "I was a fool who provided them free funding to create a start-up." He added, "I gave them $38 million of essentially free funding to create what would become an $800 billion company."
Tesla, founded in 2003, leads in electric cars and autonomous driving tech. SpaceX, started in 2002, focuses on reusable rockets and Starlink satellites. OpenAI shifted from nonprofit to a capped-profit model in 2019, then fully for-profit last year with Microsoft backing billions in investments.
Details of the Lawsuit
Musk contends OpenAI broke its founding contract by accepting Microsoft investment and building commercial AI products like ChatGPT. He demands $150 billion in damages. Musk also wants OpenAI to dissolve the for-profit subsidiary formed last year.
Microsoft, a key OpenAI partner since 2019, provides cloud computing via Azure and integrates AI into products like Office. Sam Altman, OpenAI CEO since 2019 after Brockman, has driven growth amid AI boom. The trial highlights tensions in AI development between open-source ideals and commercial pressures.
This case draws attention to OpenAI's evolution from Musk's vision of nonprofit AI safety to a major player valued highly by investors.