Musk v. Altman week 1: Elon Musk says he was duped, warns AI could kill us all, and admits that xAI distills OpenAI’s models

In a packed Oakland federal courtroom, Elon Musk took the stand in a crisp black suit, arguing that OpenAI CEO Sam Altman and president Greg Brockman duped him into donating $38 million to what he believed was a nonprofit dedicated to safe AI development. Musk described himself as 'a fool who provided them free funding to create a startup,' and warned that the worst-case scenario for AI is a 'Terminator situation where AI kills us all.' He also revealed, to audible gasps, that his own AI company xAI uses OpenAI’s models to train its Grok chatbot. Outside, protesters urged people to quit ChatGPT and boycott Tesla. The trial’s outcome could upend OpenAI’s race toward a near-trillion-dollar IPO, while xAI is expected to go public via SpaceX as early as June at a $1.75 trillion valuation.

OpenAI’s lawyer William Savitt, who once represented Musk and Tesla, countered that Musk was 'never committed to OpenAI being a nonprofit' and is suing merely to undermine a competitor. Savitt pointed out that xAI sued Colorado over an AI safety law. The judge, Yvonne Gonzalez Rogers, snapped at both sides, saying 'This is not a trial on whether artificial intelligence has damaged humanity.' Musk explained he waited until 2024 to sue because he went through three phases: enthusiastic support, then losing confidence, and finally being 'sure they’re looting the nonprofit.' The trial continues next week, with the core question of whether Musk was a guardian of AI safety or a sore loser in the AI arms race.