Musk mulled handing OpenAI to his children, Altman testifies: latest

OpenAI CEO Sam Altman testified this morning that Elon Musk once suggested passing control of a hypothetical for-profit OpenAI to his children. The dramatic revelation came during Altman's defense against Musk's lawsuit challenging the AI giant's corporate structure, highlighting long-standing clashes over control, safety, and the company's foundational mission.

Altman took the stand to address Musk's allegations that OpenAI's founders "stole a charity" by establishing a for-profit entity alongside its non-profit foundation. Altman countered, stating that the organization had created "one of the largest charities in the world," now boasting approximately $200 billion in assets, and dismissed Musk's framing as difficult to comprehend.

The testimony shed light on a pivotal period in 2017 when OpenAI's founders were grappling with how to secure the immense funding needed to develop advanced AI models. It was during these intense discussions that Musk's "specific plans on safety made me worry," according to Altman.

A 'Hair-Raising Moment' Over Control

Altman recounted a "particularly hair-raising moment" when the debate turned to the contingency of Musk's death while in control of a potential OpenAI for-profit. In Altman's telling, Musk proposed, "Maybe OpenAI should pass to my children." This suggestion deeply troubled Altman, as OpenAI's core ethos was to prevent advanced AI from being concentrated in the hands of a single individual.

Altman, drawing on his experience from Y Combinator, noted that founders who gain control rarely relinquish it. This focus on individual control from Musk conflicted directly with the collaborative and distributed governance principles OpenAI aimed to uphold from its inception.

Beyond control, Altman also criticized Musk's management approach, suggesting it was ill-suited for a research environment. "I don't think Mr. Musk understood how to run a good research lab," Altman stated, describing how Musk had "demotivated some of our most key researchers."

Clash Over Research Culture

Altman cited an instance where Musk allegedly required co-founders Greg Brockman and Ilya Sutskever to compile a list of researchers, rank their accomplishments, and then "take a chainsaw through a bunch." Altman testified that this directive inflicted significant and lasting damage to the organization's culture. He positioned himself as defending the "sweat equity" of Brockman and Sutskever, who were effectively managing OpenAI's operations while both Musk and Altman held other commitments.

The unresolved clash ultimately led to Musk's departure from OpenAI's board. Following his exit, Musk embarked on his own AI initiatives, including projects within Tesla and the launch of his AI startup, xAI. Despite the professional split, Altman maintained contact with Musk, providing updates on OpenAI's progress and even seeking his funding and advice, a detail OpenAI's lawyers highlighted to underscore Musk's prior engagement with the investments he now disputes.

OpenAI's legal team pointed out that Musk had been consistently informed and invited to participate in the very investments that form the basis of his current lawsuit, alleging they corrupted the non-profit's mission. Altman even characterized one discussion about a 2018 Microsoft investment as a "good vibes meeting," a rare occurrence in interactions with Musk, who reportedly spent a "long conversation showing us memes on his phone."

OpenAI's Financial Evolution

The court also heard testimony from OpenAI board chair Bret Taylor, who addressed the foundation's lack of full-time employees until earlier this year. Taylor explained that this was due to the significant challenge of converting OpenAI's equity to cash, a process that was only accomplished through the organization's most recent restructuring in 2025. This timeline helps contextualize the financial evolution of the foundation as its assets grew to substantial levels.

Altman's testimony paints a vivid picture of the early days of OpenAI, marked by intense debate over its future, safety protocols, and governance. The legal battle continues to expose the intricate dynamics between its visionary founders, particularly the stark differences in philosophy between Altman's collaborative vision and Musk's desire for centralized control.

FAQ

Q: What is Elon Musk's central allegation against OpenAI?

A: Musk alleges that OpenAI's founders "stole a charity" when they created a for-profit subsidiary to market AI products, claiming this diverged from the original non-profit mission and commitment to safety.

Q: What was the "hair-raising moment" Altman described in court?

A: Altman testified that during a discussion about control and safety in 2017, Elon Musk suggested that if he were to die while controlling a hypothetical for-profit OpenAI, the company "should pass to my children."

Q: How did Altman describe Musk's management style at OpenAI?

A: Altman stated that Musk's management tactics were not suited for a research lab, alleging that he demotivated key researchers and once demanded a "chainsaw" approach to ranking and cutting staff, which caused significant damage to the organization's culture.