Elon Musk to testify in OpenAI case

Opening statements began Tuesday in federal court in Oakland, where Elon Musk is trying to prove OpenAI broke its original nonprofit mission. (reuters.com) Musk sued OpenAI, Chief Executive Sam Altman, President Greg Brockman and Microsoft, saying the company turned itself from a public-minded lab into a profit machine. (reuters.com) (geekwire.com) A nine-person jury was seated Monday, but its verdict is advisory. Judge Yvonne Gonzalez Rogers will make the final decision on liability and any remedy. (cnbc.com) (cbsnews.com) The case is narrower than Musk’s original complaint. On April 24, Gonzalez Rogers dismissed his fraud claims and sent breach-of-charitable-trust and unjust-enrichment claims to trial. (reuters.com) Musk is seeking $150 billion in damages to be paid to OpenAI’s charitable arm, and he wants OpenAI restored to nonprofit status with Altman and Brockman removed as officers. (reuters.com) OpenAI says Musk knew about and supported the company’s shift to a for-profit structure before leaving its board in 2018, and sued only after he failed to gain control. (reuters.com) (cnbc.com) The company sharpened that argument on X on Monday, calling the case a “baseless and jealous bid to derail a competitor.” Musk now runs rival artificial intelligence company xAI. (cbsnews.com) Microsoft is not a side character in the case. Musk says the company helped OpenAI abandon its nonprofit obligations after becoming its biggest backer. (geekwire.com) (reuters.com) Witnesses expected to testify include Musk, Altman and Microsoft Chief Executive Satya Nadella. Reuters reported Musk could take the stand as soon as this week. (reuters.com) Gonzalez Rogers told prospective jurors the dispute is “just a case about promises and breaches of promises.” The liability phase is expected to run into May, with jurors asked to deliberate by May 12. (geekwire.com) (reuters.com) What the court decides will reach beyond a feud between two co-founders. It could determine whether OpenAI’s current structure can survive its next phase of growth. (technologyreview.com)