Elon Musk tried to recruit Sam Altman to Tesla AI lab before OpenAI split, trial reveals

Reviewed byNidhi Govil

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A federal trial in Oakland is exposing the fractured origins of OpenAI through emails, texts, and testimony. Before leaving OpenAI's board in 2018, Elon Musk attempted to recruit Sam Altman and other founders to lead an AI unit inside Tesla, even offering Altman a board seat. The lawsuit centers on whether Altman and Greg Brockman breached OpenAI's founding agreement by converting the nonprofit into an $852 billion for-profit behemoth.

Elon Musk Attempted to Recruit Sam Altman to Tesla Before OpenAI Split

The Musk v. Altman trial unfolding in federal court in Oakland has revealed a previously undisclosed chapter in the history of OpenAI: Elon Musk's 2018 attempt to recruit Sam Altman and other founding members to lead an AI lab within Tesla

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. According to emails and testimony presented during cross-examination of Shivon Zilis, a former OpenAI adviser and board member who is also the mother of four of Musk's children, the Tesla CEO went as far as offering Altman a Tesla board seat

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. The evidence shows that by late 2017, Musk had lost confidence in the nonprofit OpenAI's ability to build artificial general intelligence (AGI), a powerful form of AI, and began exploring alternatives

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Source: Digit

Source: Digit

In November 2017, Zilis drafted an FAQ for a planned event at the NeurIPS AI conference to announce that Tesla was building a "world leading AI lab(?) which will rival the likes of Google / DeepMind and Facebook AI Research"

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. The document listed Sam Altman's name next to Musk's with question marks, suggesting uncertainty about his participation. Another note indicated the event "could be a forcing function for Sam to commit to TeslaAI"

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. Zilis testified that neither the AI lab nor the launch event materialized, and Altman never joined Tesla

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The Core Claims in the Elon Musk Lawsuit Against OpenAI

Elon Musk is arguing that Sam Altman and OpenAI president Greg Brockman breached the company's charitable trust by effectively converting OpenAI into a for-profit company

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. The lawsuit alleges this OpenAI for-profit shift was not what they promised when Musk co-founded the company in 2015 and contributed $38 million

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. The company has since grown into an $852 billion behemoth with aspirations for a public listing as early as this year

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. Musk is seeking several remedies, including unwinding OpenAI's restructuring, removing Sam Altman, and substantial damages

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Source: Digit

Source: Digit

OpenAI's legal team has countered that Musk was prepared to commercialize the lab, provided he maintained control of OpenAI

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. William Savitt, OpenAI's lead attorney, argued that testimony from Shivon Zilis showed Musk was "prepared to do the for-profit, provided he would get control"

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. Savitt told reporters that when neither controlling governance nor folding OpenAI into Tesla was available to Musk, "he picked up his marbles and went home"

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. Greg Brockman testified that Musk was seeking "unilateral control over AGI," which he and other founders could not accept

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AI Safety Concerns Take Center Stage in Trial Testimony

The lawsuit has put OpenAI's safety record under intense scrutiny. Rosie Campbell, a former employee who joined OpenAI's AGI readiness team in 2021 and left in 2024 after her team was disbanded, testified that the company's push to release AI products compromised its commitment to AI safety

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. "When I joined it was very research-focused and common for people to talk about AGI and safety issues," Campbell testified. "Over time it became more like a product-focused organization"

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Campbell pointed to an incident where Microsoft deployed GPT-4 in India through Bing before the model had been evaluated by OpenAI's Deployment Safety Board

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. While the model itself did not present significant risk, she argued the company needed "to set strong precedents as the technology gets more powerful"

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. This deployment was one of the red flags that led OpenAI's nonprofit board of directors to briefly fire CEO Sam Altman in 2023

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Greg Brockman's Journal Entries Reveal Internal Tensions

Greg Brockman spent days on the stand explaining deeply personal journal entries that Musk's legal team used to paint him as money-hungry

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. The journal entries, written between 2015 and 2023, were submitted by OpenAI as evidence in October and unsealed in January

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. Musk's attorney Steven Molo repeatedly highlighted a 2017 entry where Brockman wrote "we've been thinking that maybe we should just flip to a for-profit. Making the money for us sounds great and all"

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Source: Digit

Source: Digit

Brockman, whose stake in OpenAI is now worth approximately $30 billion, told the court the entries reflected a stream of consciousness that explored alternate viewpoints rather than definitive positions

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. He testified it was "very painful" to discuss the private writings publicly, explaining that sometimes he would jot notes reflecting another person's thoughts just to consider their perspective

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Governance Failures and the Nonprofit Mission Under Question

Tasha McCauley, a former board member, testified about concerns that Altman was not forthcoming enough with the board for OpenAI's unusual structure to function properly

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. She discussed a pattern of Altman misleading the board, including lying about McCauley's intention to remove Helen Toner, another board member, and failing to inform the board about the decision to launch ChatGPT publicly

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. "We are a non-profit board and our mandate was to be able to oversee the for-profit underneath us," McCauley told the court. "Our primary way to do that was being called into question" .

The apparent failure of the nonprofit board to influence the for-profit organization addresses Musk's central claim that the transformation of OpenAI from research organization into one of the largest private companies in the world breached founding agreement

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. McCauley suggested the governance failures at OpenAI should prompt stronger government regulation of advanced AI, noting that "if it all comes down to one CEO making those decisions, and we have the public good at stake, that's very suboptimal"

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What the Trial Means for OpenAI's Future

A critical issue in the case involves the statute of limitations for charitable trust claims. Musk needs to prove he only discovered the alleged misconduct within three to four years of filing the lawsuit in 2024

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. Musk argues he was suspicious earlier but only realized in 2022 that OpenAI had abandoned its nonprofit mission

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. Even a partial win for Musk could significantly impact OpenAI as it reportedly plans to go public this year

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. The trial continues to expose tensions between rapid AI development and safety protocols, raising questions about how frontier labs balance their founding principles with commercial pressures as they scale toward AGI.

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