Musk mulled handing OpenAI to his children, Altman testifies

Sam Altman, CEO of OpenAI, recently testified regarding his ongoing legal battle with co-founder Elon Musk. Musk's lawsuit challenges OpenAI's corporate structure, particularly the transition to a for-profit subsidiary. Altman defended the company's trajectory, asserting their commitment to creating one of the world's largest charities.

Altman addressed Musk's allegations that OpenAI's founders "stole a charity." He highlighted the foundation's significant assets and its impactful work. The organization's restructuring in 2025 facilitated the conversion of equity to cash, enabling its charitable endeavors.

A key point of contention arose from a 2017 debate about funding OpenAI's AI models. Altman expressed worry over Musk's specific plans for safety, recalling a "hair-raising moment." During this discussion, Musk reportedly suggested that if he were to die while controlling a hypothetical for-profit OpenAI, the company should pass to his children.

This proposal gave Altman pause, as OpenAI was founded on the principle of preventing advanced AI from being controlled by a single individual. Altman, drawing from his experience with Y Combinator, understood that founders often retain control. He also noted that Musk's management style, effective in other industries, was detrimental to OpenAI's research culture, demotivating key researchers and causing long-term damage to the organization's ethos.

Despite their disagreements, Altman maintained communication with Musk, seeking his input and funding. OpenAI's legal team underscored that Musk was regularly updated and invited to participate in investments that he now disputes, including a "good vibes meeting" regarding a Microsoft investment in 2018, where Musk humorously shared memes.