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Sam Altman Testifies in Federal Court: 'I Am an Honest and Trustworthy Business Person'

AI news: Sam Altman Testifies in Federal Court: 'I Am an Honest and Trustworthy Business Person'

"I believe I am an honest and trustworthy business person." Sam Altman delivered that statement under oath in federal court on May 13 - a moment that crystallizes just how personal the legal fight between OpenAI and Elon Musk has become.

Musk filed suit against OpenAI in 2024, arguing the company abandoned its founding mission of developing AI for the benefit of humanity rather than shareholders. He donated an estimated $44 million to OpenAI before leaving its board in 2018. His lawsuit alleges that Altman and co-founders misled early donors about the organization's direction as it shifted toward a capped-profit structure to attract venture capital.

Altman's direct self-characterization under oath sets up a credibility contest at the center of the case. Musk's legal team argues the commercial transformation of OpenAI was a breach of commitments made to original backers. OpenAI counters that raising significant outside capital was the only realistic path to building the kind of AI systems the nonprofit originally set out to build.

The outcome has implications beyond the two parties in the courtroom. OpenAI is simultaneously working through a conversion to a full for-profit public benefit corporation, a move requiring approval from regulators in California and Delaware. California's attorney general has flagged concerns about whether public interest assets built under the nonprofit structure are being adequately protected in the transition.

For everyday ChatGPT users, nothing changes today. But if Musk prevails on key claims, it could reshape OpenAI's governance structure or force the company to make concessions to early backers before its corporate restructuring can proceed.