Elon Musk Testifies in OpenAI Trial: Accusations, AI Warnings, and Admission of Model Use

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<h2 id="introduction">Introduction: The First Week of a Landmark Trial</h2> <p>The opening week of the high-stakes legal battle between Elon Musk and OpenAI unfolded in a packed federal courthouse in Oakland, California. The atmosphere was electric, with lawyers lugging boxes of exhibits, journalists typing furiously, and a small contingent of concerned OpenAI employees observing from the gallery. Outside, protesters held signs urging the public to ditch ChatGPT or boycott Tesla—or both. At the center of it all sat Musk, dressed in a crisp black suit and tie, looking composed but occasionally flashing a wry smile. Under oath, he painted a picture of regret and betrayal, claiming he had been duped into bankrolling what would become a corporate behemoth.</p><figure style="margin:20px 0"><img src="https://wp.technologyreview.com/wp-content/uploads/2026/05/AP26118555311492.jpg?resize=1200,600" alt="Elon Musk Testifies in OpenAI Trial: Accusations, AI Warnings, and Admission of Model Use" style="width:100%;height:auto;border-radius:8px" loading="lazy"><figcaption style="font-size:12px;color:#666;margin-top:5px">Source: www.technologyreview.com</figcaption></figure> <h2 id="musk-testimony">Musk's Testimony: A Dupe or a Competitor?</h2> <h3>The Founding Narrative</h3> <p>Musk co-founded OpenAI in 2015 alongside Sam Altman and Greg Brockman. He testified that his motivation was purely altruistic: to develop artificial intelligence for the benefit of humanity, as a nonprofit counterweight to Google's dominant AI efforts. “I was a fool who provided them free funding to create a startup,” Musk told the jury. He recounted giving $38 million of what he called “essentially free funding,” money that OpenAI later used to build a for-profit subsidiary now valued at roughly $800 billion. Musk is now asking the court to remove Altman and Brockman from their leadership roles and to unwind the restructuring that enabled OpenAI's for-profit arm.</p> <h3>The Warning About AI</h3> <p>During his direct examination, Musk positioned himself as a longtime advocate of AI safety. He recalled asking Google co-founder Larry Page what would happen if AI tried to wipe out humanity. Page, according to Musk, replied, “That will be fine as long as artificial intelligence survives.” Musk then delivered a stark warning to the jury: “The worst-case scenario is a Terminator situation where AI kills us all.” This dramatic statement underscored his claim that he was suing to restore OpenAI's original safety-focused mission.</p> <h2 id="admission">The Admission That Shocked the Court</h2> <p>Perhaps the most stunning moment came when Musk confessed—to audible gasps in the courtroom—that his own AI company, xAI, which produces the chatbot Grok, uses OpenAI's models for training. This admission seemed to undercut his moral high ground, as it revealed that xAI is effectively “distilling” OpenAI's technology. Musk's lawyer tried to downplay the disclosure, but the revelation lingered in the air, drawing sharp scrutiny from the opposing side.</p><figure style="margin:20px 0"><img src="https://wp.technologyreview.com/wp-content/uploads/2026/05/AP26118555311492.jpg" alt="Elon Musk Testifies in OpenAI Trial: Accusations, AI Warnings, and Admission of Model Use" style="width:100%;height:auto;border-radius:8px" loading="lazy"><figcaption style="font-size:12px;color:#666;margin-top:5px">Source: www.technologyreview.com</figcaption></figure> <h2 id="stakes">The Stakes: OpenAI's Future and xAI's Plans</h2> <p>The outcome of this trial could upend OpenAI's trajectory toward an initial public offering at a valuation approaching $1 trillion. At the same time, Musk's xAI is reportedly planning to go public as part of his rocket company SpaceX as early as June, with a target valuation of $1.75 trillion—more than double OpenAI's current worth. The case thus pits two AI giants against each other in a legal and financial chess match.</p> <h2 id="legal-arguments">Legal Arguments and Cross-Examination</h2> <p>OpenAI's lawyer, William Savitt—who once represented Musk and Tesla—stood at the lectern and methodically dismantled Musk's narrative. Savitt argued that Musk was “never committed to OpenAI being a nonprofit” and that the lawsuit was a strategic move to hobble a competitor rather than a noble crusade for safety. “He is not a paladin of safety and regulation,” Savitt said during cross-examination, maintaining his sharp, surgical cadence. The central question of the trial remains: why exactly is Musk suing? Is he trying to preserve a mission, or is he exploiting the courts for competitive gain? Only the coming weeks will tell.</p>