Musk Testifies in OpenAI Trial: Admits xAI Uses OpenAI Models, Warns AI Could 'Kill Us All'
Musk Admits xAI Distills OpenAI’s Models, Warns of AI Catastrophe
In a dramatic first week of the landmark trial between Elon Musk and OpenAI, Musk took the stand and confessed that his own AI company, xAI, uses OpenAI’s models to train its chatbot Grok—prompting audible gasps in the courtroom. The billionaire also warned that artificial intelligence could “kill us all” and claimed he was duped into funding OpenAI by CEO Sam Altman and President Greg Brockman.
“I was a fool who provided them free funding to create a startup,” Musk told the jury. He said he gave $38 million to what he believed was a nonprofit dedicated to safe AI, only to see it become a for-profit behemoth valued at nearly $800 billion.
The trial, unfolding in federal court in Oakland, California, has drawn packed crowds of lawyers, journalists, and protesters. Outside, demonstrators urged the public to quit ChatGPT and boycott Tesla.
Key Testimony: ‘The Worst-Case Scenario Is a Terminator Situation’
During direct examination, Musk portrayed himself as a longtime advocate of AI safety. He said he co-founded OpenAI in 2015 as a counterweight to Google, which he feared was racing ahead without safeguards. He recounted asking Google co-founder Larry Page what would happen if AI decides to eliminate humanity. Page’s response: “That will be fine as long as artificial intelligence survives.”
“The worst-case scenario is a Terminator situation where AI kills us all,” Musk later warned the jury. But OpenAI’s lawyer, William Savitt, countered that Musk was “never committed to OpenAI being a nonprofit” and was suing to undermine a competitor.
Background: From Nonprofit to Trillion-Dollar Race
OpenAI was launched in 2015 as a nonprofit with Musk, Altman, and Brockman as co-founders. Musk donated $38 million but left in 2018 amid tensions. The company later created a for-profit subsidiary, attracting billions in investment from Microsoft. OpenAI is now racing toward an IPO at a valuation approaching $1 trillion.
Meanwhile, Musk’s own AI venture, xAI, is expected to go public as part of his rocket company SpaceX as early as June, with a target valuation of $1.75 trillion. Musk admitted under oath that xAI “distills” OpenAI’s models to improve Grok—a practice he previously criticized in public.
What Musk Is Asking the Court
Musk is seeking to remove Altman and Brockman from their roles and to unwind OpenAI’s restructuring into a for-profit entity. He argues that the original mission—safe AI for humanity—has been betrayed. “I gave them $38 million of essentially free funding, which they then used to create what would become an $800 billion company,” he said.
OpenAI’s legal team counters that Musk’s lawsuit is a competitive move to slow down a rival. Savitt, who once represented Musk, pressed him on why he chose to sue only after launching xAI.
What This Means
The outcome could reshape the AI landscape. If Musk prevails, OpenAI might be forced back to a nonprofit structure, threatening its IPO plans and partnerships with Microsoft. Conversely, a win for OpenAI would confirm that for-profit AI development is legally sound—potentially accelerating the race to artificial general intelligence.
For AI safety advocates, the trial highlights the tension between profit and public good. Musk’s warnings about existential risk resonate, but his own admission of copying OpenAI’s models underscores the industry’s cutthroat reality. The trial continues next week, with more witnesses expected to testify about the true origins of the dispute.
— Reporting from Oakland federal court.
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