to leave a comment.
Musk's side claims in court: "It's like a souvenir shop selling off a museum's Picasso works."
OpenAI: "Musk was aware of the plan to convert to a for-profit entity"... MS: "Suddenly raising issues after ChatGPT's success."
Tesla CEO Elon Musk, who sued OpenAI CEO Sam Altman for allegedly breaking the promise of 'non-profit operation' and taking unfair profits, claimed this trial was 'a fight to protect America's culture of philanthropy.'
According to Reuters and US business channel CNBC, CEO Musk appeared as the first witness in a suit at the Oakland Division of the U.S. District Court for the Northern District of California on the 28th (local time), dressed in a suit, and claimed, "I came up with the idea, named it (OpenAI), recruited key talent, and taught everything I knew."
He testified that he conceived the idea of establishing OpenAI after debating AI safety with Google co-founder Larry Page, stating that he wanted to create an open-source alternative that could compete with Google.
Frequently pondering AI safety, he explained the background of his vision for OpenAI, saying, "AI can either enrich us or kill us all," and "We want to live in a movie like 'Star Trek' created by Gene Roddenberry, not in a movie like James Cameron's 'Terminator' (which features killer robots)."
He also predicted, "In my estimation, AI as smart as humans will emerge next year."
He then emphasized, "I could have started (OpenAI) as a for-profit company, but I chose not to."
He described OpenAI's transformation into a for-profit company, contrary to his original intention of 'operating as a non-profit,' as 'plunder,' warning, "If it's acceptable to plunder public interest organizations, the entire foundation of American charitable giving will be destroyed."
Steven Mollo, the attorney representing Musk's side, also emphasized in his opening statement that the defendants, including CEO Altman and OpenAI President Greg Brockman, should be held accountable for stealing a charitable organization.
Attorney Mollo criticized the OpenAI Foundation, a non-profit organization, for establishing OpenAI Public Benefit Corporation (PBC), which can pursue profit, likening it to a museum opening a souvenir shop, and stating, "A souvenir shop cannot plunder a museum and sell off Picasso's works."
Musk's side presented as evidence the fact that OpenAI's founding charter, drafted in 2015, explicitly states that OpenAI seeks to develop 'open technology for the public good' and 'is not established for the private gain of any specific individual.'
Conversely, William Savitt, the attorney representing OpenAI, countered that CEO Musk was originally aware of the plan to convert OpenAI into a for-profit entity.
Attorney Savitt based this claim on an email sent by Shivon Zilis, a former OpenAI director who is also the mother of four of Musk's children, to Sam Teller, who worked for Musk.
The email suggested options such as changing the organizational structure to a PBC that can pursue profit, or dividing it into a regular stock company and a non-profit organization.
Attorney Savitt claimed, "Musk supported the for-profit entity as long as he maintained control."
He further pointed out that CEO Musk only donated a portion of the funds he initially promised, forcing OpenAI to hastily seek additional funding.
Russell Cohen, the attorney representing Microsoft (MS), another defendant in this lawsuit, countered that he neither helped nor could have helped with OpenAI's alleged breach of public trust, as claimed by CEO Musk.
Attorney Cohen specifically criticized that CEO Musk made no mention of this for five years after MS and OpenAI announced their partnership, stating, "After ChatGPT achieved great success, he established xAI, a for-profit (competing) company, and only then suddenly raised issues regarding MS."
Meanwhile, Judge Yvonne Gonzalez Rogers, presiding over this lawsuit, unusually ordered CEO Musk to refrain from using social media.
When OpenAI raised an issue about CEO Musk's previous day's posts mocking CEO Altman and OpenAI President Greg Brockman by sarcastically calling them 'Scam' and 'Stockman,' Judge Rogers asked CEO Musk to "try to refrain from the habit of using social media to resolve matters outside of court."
However, she stated that she was reluctant to issue a 'gag' order.
In response, CEO Musk agreed to minimize social media activity, and CEO Altman also agreed to participate.
Previously, Judge Rogers announced that the trial would proceed in two stages: one to determine the defendants' liability, and another to decide the remedies, with the first stage expected to conclude by the 21st of next month.
CEO Musk filed a lawsuit against CEO Altman and President Brockman, OpenAI's corporate entity, and Microsoft (MS), which funded OpenAI, claiming that he suffered damages when OpenAI broke its promise to operate as a non-profit and became a for-profit company, and that CEO Altman and President Brockman gained unfair profits in the process.
In this lawsuit, CEO Musk is demanding the dismissal of CEO Altman and President Brockman and the return of unfair profits totaling $134 billion (approximately 198 trillion Korean Won) to the OpenAI Foundation, a non-profit organization.
In this trial, CEO Altman, Microsoft CEO Satya Nadella, and former OpenAI director Zilis are also expected to testify.
Newsletter
Get key news delivered to your email every morning
to leave a comment.