Sam Altman Says Musk Wanted 90% Stake In OpenAI: Trial Testimony

Sam Altman testified in court on Tuesday that Elon Musk had sought majority control of OpenAI during the company’s early years, including a proposal that would have given Musk a 90 per cent equity stake. The testimony came during a closely watched legal battle in California over OpenAI’s transformation from a non-profit research organisation into one of the world’s most valuable artificial intelligence companies.

Appearing before a court in Oakland, Altman described Musk as deeply focused on controlling the company’s future direction. According to Altman, Musk initially suggested he should hold 90 per cent of OpenAI’s equity before later reducing the demand, though he continued seeking majority influence over the organisation. Altman said the discussions made him uncomfortable because OpenAI had originally been founded on the principle that no single individual should control artificial general intelligence, or AGI.

The lawsuit, filed by Musk, accuses OpenAI and co-founders Altman and Greg Brockman of abandoning the organisation’s original non-profit mission after Musk contributed roughly $38 million in its early stages. Musk argues that the company shifted away from developing AI for the benefit of humanity and instead prioritised commercial growth after establishing a for-profit subsidiary in 2019.

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OpenAI has rejected those allegations, arguing that the transition to a commercial structure was necessary to raise the massive levels of funding required to compete in the rapidly evolving AI industry. The company has also claimed that Musk’s legal action is motivated partly by frustration over his failure to gain control of the organisation and by competitive tensions linked to his own artificial intelligence venture, xAI.

During his testimony, Altman recalled Musk warning OpenAI’s founders that the company had “zero per cent” chance of success without him after disagreements emerged over governance and ownership. Musk’s lawyers later challenged Altman aggressively in court over questions of credibility and honesty, referencing his brief removal as OpenAI chief executive in 2023 before he was reinstated following strong internal support from employees and investors.

The case has also highlighted the extraordinary financial scale of the global AI race. Testimony during the proceedings revealed that Brockman holds an estimated $30 billion stake in OpenAI, while Satya Nadella recently told the court that Microsoft’s investment in the company had grown dramatically in value. An advisory jury is expected to deliver its opinion on the dispute later this month, after which Judge Yvonne Gonzalez Rogers will issue a final ruling on liability and possible remedies.

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