Sam Altman’s Attorneys Blast Elon Musk’s Lawyer In New OpenAI Trial Filing: ‘Unsubstantiated Allegations’
Topline
OpenAI CEO Sam Altman’s attorneys asked for the jury in his trial against Elon Musk to disregard part of his testimony Tuesdayafter Musk’s lawyer made “unsubstantiated allegations” suggesting the Senate was investigating Altman, with Altman’s lawyers accusing Musk’s attorney of unfairly prejudicing the jury against the OpenAI chief.
OpenAI CEO Sam Altman arrives to court on May 12 in Oakland, California.
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Key Facts
Altman’s attorneys filed a court brief after the OpenAI CEO testified Tuesday at the trial, in which Musk claims Altman and other OpenAI cofounders deceived him by getting him to invest in OpenAI as a nonprofit and then changing its model to be a for-profit venture.
Altman’s attorneys accused Musk’s lawyer Steven Molo of using his cross-examination of Altman “as a vehicle to present the jury with a parade of unsubstantiated allegations” against the OpenAI chief and making “a litany of unproven and untestable hearsay allegations.”
Molo, during his questioning, mistakenly suggested Altman was being investigated by the Senate, after it was instead House lawmakers who sent a letter to the OpenAI CEO last week asking for details about his personal investments.
Molo also falsely suggested that congressional investigation was over testimony Altman gave to Congress in 2023 saying he doesn’t receive any equity from OpenAI, after Altman testified Tuesday he doesn’t receive any direct equity from OpenAI, but has an indirect investment in the company through a different fund.
The court brief also took issue with Molo asking Altman questions regarding an unflattering article about Altman’s leadership in The New Yorkerwhich Altman’s lawyers argue is based on “hearsay,” and for making “unfounded allegations that Mr. Altman had made false statements in SEC filings” (Molo has not yet responded to a request for comment).
Altman’s lawyers want the court to instruct the jury to disregard Molo’s suggestion that Altman received a letter from the Senate regarding his 2023 testimony, because “no such letter was ever sent.”
What To Watch For
The OpenAI trial will resume Wednesday morning in Oakland, California, and is expected to run through Thursday before jury deliberations begin next week. Altman completed his testimony on Tuesday, but it’s still possible he could be called again to take the stand. The trial carries high stakes for OpenAI and Altman, as if Musk wins, OpenAI could be forced to revert back to its nonprofit structure and Altman removed from the board.
Why Is Sam Altman Under Investigation?
The House Oversight Committee sent Altman a letter last week asking for details about how OpenAI deals with potential conflicts of interest, based on concerns about Altman’s personal investments. Altman, whose net worth Forbes values at more than $3.5 billion, has amassed his wealth through his outside investments, since he doesn’t have direct equity in OpenAI. Many of the companies he’s invested in do business with OpenAI or have been in discussions to, however, raising ethics concerns. The House inquiry came after The Wall Street Journal reported Altman pushed OpenAI to make a nine-figure investment in Helion, a nuclear fusion company that Altman has a significant stake in, which some OpenAI employees reportedly had strong concerns about. In addition to the House, state attorneys general also sent a letter to the Securities and Exchange Commission asking it to scrutinize Altman’s investments ahead of OpenAI’s IPO. The Senate has not opened any investigation into Altman. At the trial Tuesday, Altman maintained he followed proper ethics guidance around his investments in companies linked to OpenAI and recused himself from any matters that could pose a conflict, and said he would respond to the House inquiry.
