Sam Altman Testifies Musk Proposed OpenAI Control to His Children

Founding of OpenAI and Musk’s Early Involvement

OpenAI was founded in 2015 as a non-profit focused on developing artificial general intelligence (AGI) with a mission to keep it beneficial to humanity. Elon Musk, one of the co-founders, played a key role in its early days. His involvement started to fade in 2018 after disagreements over the company’s direction, especially its move toward making money. A 2017 email from Elon Musk, mentioned in court records, showed he thought OpenAI had a zero percent chance of success without his input. His exit also came from refusing to accept a smaller role in the organization’s leadership.

Musk’s Lawsuit and Altman’s Statements

“Musk had suggested giving his children control of OpenAI after his death”

Musk sued Sam Altman, OpenAI, and co-founder Greg Brockman in March 2025, asking for about $134 billion. He claims Altman and OpenAI broke the founding charter by pushing for profits and abandoning the non-profit mission. During a hearing, Altman said Musk had suggested giving his children control of OpenAI after his death, a claim backed by Musk’s 2017 email. Altman also said Musk wanted to maintain influence over the company’s changes, including shifting to a for-profit setup. Musk allegedly asked for majority control, which the co-founders refused.

Formation of the For-Profit Subsidiary

In 2019, OpenAI created a for-profit branch, a step Altman described as a way to get more funding for AGI research. When Altman offered Musk a chance to invest in the new company, Musk said no, claiming he wouldn’t back any startups he didn’t control. This decision marked a shift in their relationship, as Musk began seeing OpenAI as a rival. Altman and Brockman rejected Musk’s demands, arguing that putting too much power in one person’s hands could be dangerous. Altman stressed that their goal was to stop any single person from having unchecked control over such powerful tech.

Legal and Ethical Issues with Musk’s Claims

Whether Altman’s statements can be used as evidence is still up for debate. Legal experts say corporate disputes often rely on interpretations of conversations, making it hard to prove intent without clear records. On March 4, 2025, a court denied Musk’s request to block OpenAI’s restructuring, saying there wasn’t enough proof of immediate harm. This ruling showed the legal system’s doubt about Musk’s claims of irreversible damage. OpenAI also sued Musk, saying he used bad faith tactics to undermine the organization’s governance, including using his influence to push co-founders into accepting his demands.

AI Governance and Corporate Influence

“Musk wanted to maintain influence over the company’s changes, including shifting to a for-profit setup”

Musk’s $38 million gift to OpenAI was categorized as a donation, not an investment, by the organization’s legal team. This became a major point in the lawsuit, as Musk argued it should count as an investment, giving him voting rights. OpenAI’s countersuit highlights the bigger debate about how non-profits balance ethical goals with financial needs. While some experts say for-profit models are needed to fund large AI projects, others warn that focusing on profits could hurt the mission of non-profits aimed at public good.

Trends in AI Governance and the Future

The growing influence of corporations in AI governance is clear from the rise of for-profit AI projects. Companies like DeepMind (acquired by Google) and Anthropic use mixed approaches that combine non-profit research with commercial use. This shift shows a wider acceptance that sustainable AI development needs financial support, which non-profits alone might not provide. However, the Musk–Altman case shows the risks of concentrating such power in one person. Analysts suggest the future of AI governance might involve decentralized models, like open-source collaborations or public-private partnerships, to reduce the risks of centralized control while still encouraging innovation.