Musk Lawyer Presses Brockman on $30 Billion OpenAI Stake at Trial

OpenAI co-founder and president Greg Brockman testified at the federal trial over the company's for-profit conversion that his personal stake in the artificial-intelligence firm is worth nearly $30 billion. The disclosure drew sustained cross-examination from Elon Musk's legal team, which pressed Brockman on whether that level of personal wealth is compatible with the organization's original nonprofit roots.

The Details

Musk attorney Steven Molo repeatedly challenged Brockman on the valuation during testimony before U.S. District Judge Yvonne Gonzalez Rogers in Oakland, according to NBC News. Molo asked Brockman why, if he was comfortable keeping roughly $1 billion, he did not return the remaining approximately $29 billion to OpenAI's nonprofit arm, NBC News reported.

"You just happen to be $30 billion richer?" Molo asked in court, according to NBC News.

Brockman defended the stake by testifying that he received it years before ChatGPT's success became clear. He described OpenAI's current organization as remaining under nonprofit control through a foundation that oversees a public-benefit corporation operating arm, Reuters and NBC News reported. He also testified that compensation was secondary to the mission.

"That is something that we've built through blood, sweat and tears, during all these years since Elon left," Brockman said, according to NBC News.

The testimony also surfaced previously underreported financial ties between Brockman and Sam Altman. In 2017, Altman gave Brockman a stake in Altman's family office that Brockman said was worth $10 million at the time, Reuters reported. Internal communications later raised questions about whether the arrangement created loyalty concerns, the same report noted. Brockman also disclosed stakes in Cerebras and Helion Energy, both tied to broader questions about his financial alignment with Altman and OpenAI business decisions, Reuters reported.

The 2017 compensation arrangement came during a period when OpenAI leaders, including Brockman and Musk, were actively discussing how to restructure the organization into a for-profit-capable model to fund expensive artificial-intelligence compute needs, Reuters reported. Those discussions eventually contributed to the organizational changes that underlie Musk's current lawsuit.

Musk is seeking the removal of Altman and Brockman from OpenAI leadership and $150 billion in damages, arguing that OpenAI abandoned its nonprofit mission and improperly enriched insiders, Reuters reported. The claims include breach of charitable trust and unjust enrichment tied to OpenAI's shift toward a for-profit structure, according to Reuters. The civil suit is being heard in the Northern District of California before Judge Yvonne Gonzalez Rogers. Musk co-founded OpenAI and later departed, a fact Brockman referenced in his testimony, according to NBC News.

Context

The case is a major test of whether Musk can force governance changes at OpenAI or unwind aspects of its hybrid nonprofit-for-profit structure, Reuters reported. OpenAI said in March that it was valued at $852 billion after its latest funding round, according to NBC News, helping explain how executive equity stakes could reach enormous paper valuations despite the organization's nonprofit origins.

The private communications between Musk and Brockman before trial became public through a court filing. According to Reuters, Musk texted Brockman about settlement prospects, and when Brockman suggested both sides drop their claims, Musk allegedly warned that Brockman and Altman would become "the most hated men in America." "By the end of this week, you and Sam will be the most hated men in America. If you insist, so it will be," the filing quoted Musk as saying, according to Reuters.

The trial began on April 28 in Oakland federal court, according to Reuters. On May 4, Brockman took the stand and disclosed the nearly $30 billion valuation under questioning from Musk's attorney.

The valuation of Brockman's stake drew slightly different framing from outlets. WIRED reported the stake is worth more than $20 billion and perhaps up to $30 billion, while Reuters, Bloomberg, and NBC News described it as worth close to or nearly $30 billion, according to the respective reports. Both characterizations trace to Brockman's courtroom testimony.

What's Next

The trial continues before U.S. District Judge Yvonne Gonzalez Rogers in Oakland federal court. The case remains a test of whether Musk can force governance changes at OpenAI or unwind aspects of its hybrid nonprofit-for-profit structure, Reuters reported. The civil claims include breach of charitable trust and unjust enrichment tied to OpenAI's shift toward a for-profit structure, according to Reuters. The outcome will influence the governance of one of the world's most valuable artificial-intelligence companies.