OpenAI CEO Sam Altman concluded over four hours of testimony in the Musk v. Altman trial in an Oakland federal courthouse on Tuesday, delivering what may be the most consequential testimony in the three-week proceeding. Under oath and under pressure, Altman systematically dismantled the core allegations that have driven Elon Musk's $134 billion redistribution claim against the company he co-founded.

The headline moment: Altman testified that he never made any commitment to Musk about keeping OpenAI's corporate structure as a nonprofit. He said Musk's departure from the OpenAI board in 2018 was a "morale boost" for researchers, and that Musk's management style "demotivated" some of the company's team.

"I don't think Mr. Musk understood how to run a good research lab," Altman told the jury.

The Tesla Merger That Almost Happened

Altman addressed the proposal, floated in OpenAI's early days, to merge the nonprofit with Tesla. He testified that joining Tesla would have "destroyed" OpenAI's ability to follow its mission, and that a merger would have also "maybe destroyed" the nonprofit itself. This directly contradicts Musk's framing that Altman and co-founder Greg Brockman betrayed their original agreement by not keeping the company under Musk's control.

The testimony also covered Altman's dramatic ouster in November 2023, when the OpenAI board removed him from the CEO role with little explanation. "I had poured the last years of my life into this," Altman said. "I was watching it about to be destroyed." He told the court he was "completely caught off guard" by the decision.

The Board Unanimously Rejected Musk's Bid

Board chair Bret Taylor also testified Tuesday, confirming that the OpenAI board unanimously voted to reject Musk's offer to acquire OpenAI last year. This is significant because it undercuts one of Musk's central arguments: that he was wrongfully excluded from OpenAI's commercial transformation.

Altman's demeanor throughout was notably calm, even slightly nervous as cross-examination began. It stood in sharp contrast to Musk's own testimony during the trial's first week, where the Tesla and SpaceX CEO repeatedly clashed with OpenAI's lawyer, William Savitt. Musk accused Altman and Brockman of trying to enrich themselves and "steal a charity."

Musk co-founded OpenAI in 2015 alongside Altman and Brockman, donating roughly $38 million. His lawsuit, filed in 2024, alleges that money was used for unauthorized commercial purposes as OpenAI transitioned toward its current for-profit structure. Altman's testimony directly challenges the foundation of that claim.

What Happens Next

Following Altman's testimony, OpenAI Foundation board member Zico Kolter briefly took the stand to discuss AI safety evaluation practices at the company. A short video deposition from Sam Teller, a Musk employee, closed Tuesday's session.

Closing arguments are expected Thursday. After three weeks of testimony that featured Musk, Altman, former Microsoft CEO Satya Nadella, OpenAI co-founder Ilya Sutskever, and several other key witnesses, the jury will soon decide whether OpenAI's transformation from a research nonprofit into a company valued at $852 billion constituted a breach of its founding commitments.

The outcome has implications far beyond the courtroom. If Musk prevails, it could force a redistribution of assets worth tens of billions of dollars and set a precedent for how AI companies structure themselves going forward. If OpenAI wins, it validates the pivot from nonprofit research lab to commercial AI powerhouse that has become the dominant model in the industry.

Originally reported by CNBC. Additional reporting from The Guardian and Benzinga.