OpenAI president testifies on Musk's demand for control

In late August 2017, key figures at OpenAI gathered to discuss transitioning the nonprofit into a for-profit structure to fund the development of AGI (Artificial General Intelligence). During these negotiations, co-founder Elon Musk demanded full control of the organization. When this demand was rejected, Musk reportedly grew angry. According to Brockman’s testimony, Musk stated that he declined, and began his exit from the organization, asking when Brockman would be departing OpenAI. Musk stopped his regular donations to OpenAI’s operating budget after failing to gain control, and he eventually left the OpenAI board in February 2018, though he continued to pay for shared office space until 2020.

During his two days of testimony, Brockman was questioned about his personal journal entries from late 2017. In one entry, Brockman questioned whether Musk was the leader he would choose, while reflecting on what it would take for him to reach a financial goal of $1B. Musk’s trial attorney, Steve Molo, used these entries to argue the co-founders were focused on personal wealth. Molo questioned why Brockman did not donate his current stake—which is worth almost $30 billion—to charity, asking why he did not donate the $29 billion beyond the single billion he had noted would satisfy him. Brockman defended the transition, pointing to OpenAI’s subsequent growth. After establishing a for-profit arm in 2019, OpenAI raised $1 billion from Microsoft, followed by an additional $13 billion from the company over four years.

The trial, which is expected to continue through next week, has highlighted the deep personal rift between the founders. Musk’s legal team has alleged that Altman and Brockman ‘stole a charity’ and argued that converting the organization to a B-Corp (a for-profit company with social goals) without him was ‘that’d be pretty morally bankrupt.’ Brockman testified that the public release of his personal journal was highly painful, but defended his actions. He also disputed Musk’s expertise, testifying that Musk did not know AI, and described Musk dismissing an early demonstration of the software. The animosity was further illustrated by a text message Musk sent to Brockman shortly before the trial, warning that Brockman and Altman would become the most hated men in America by the end of that week.

Why it matters

The ongoing legal battle between Elon Musk and OpenAI co-founders centers on the company’s governance and transition from a nonprofit to a for-profit entity, with scrutiny focused on 2017 negotiations over control.