Musk vs Altman trial week 1: AI safety alarm, funding feud and xAI’s OpenAI tie

Musk vs Altman trial: First week in Oakland

Elon Musk took the stand in a black suit, claiming he was duped by OpenAI’s Sam Altman and Greg Brockman and warning that AI could wipe out humanity. He said the $38 million he helped fund turned into a ↑ $800 billion enterprise while OpenAI shifted from nonprofit to a for‑profit arm.

“The worst‑case scenario is a Terminator situation where AI kills us all,” Musk told the jury.

The federal courthouse buzzed with lawyers, journalists and a handful of OpenAI staff. Outside, demonstrators called for a ChatGPT boycott and a Tesla pull‑back. Musk’s testimony centered on three phases: enthusiastic support, growing mistrust, and finally the belief that the nonprofit was being looted.

He recounted a 2022 text to Altman: “What the hell is going on? This is a bait and switch,” after learning Microsoft was poised to inject ↓ $10 billion for a massive return.

During cross‑examination, OpenAI counsel William Savitt highlighted Musk’s parallel ventures—Tesla, SpaceX, Neuralink and the newly formed xAI, which runs the Grok chatbot. When pressed, Musk admitted xAI “partly distills” OpenAI models, a practice he called standard for validating AI.

The judge warned that the trial is not a debate over whether AI has already harmed humanity, but a legal battle over corporate structure and fiduciary duty. Next week, AI safety expert Stuart Russell is slated to testify.

For a broader view of the stakes, see Reuters coverage of the case.

Intel provided by: Julian Reed

Consumer Electronics Expert