Musk Defends OpenAI Funding as Trial Tests Charitable Trust Claims
Day 3 of the Musk v. Altman OpenAI trial saw Elon Musk defend his $38 million donation as foundational to OpenAI and argue his contributions—reputation and naming the company—had value, while OpenAI pressed breach of charitable trust and unjust enrichment. Musk cited Microsoft’s $10 billion investment as the tipping point that contradicted the nonprofit mission and even texted Sam Altman calling it a bait-and-switch. The proceedings are structured in a liability phase (with a nonbinding jury verdict) followed by a possible remedies phase, and Musk’s side indicated Jared Birchall will be the next witness. The case also touches on whether OpenAI can balance nonprofit ideals with for-profit gains and seeks to determine damages or other remedies if wrongdoing is found.