In May 2023, OpenAI CEO Sam Altman testified under oath before Congress on artificial intelligence regulation. Louisiana Senator John Kennedy heard of his idea for advanced model licensing and asked whether Altman was qualified to run a hypothetical AI regulator.
“I love my current job,” Altman said.
“You make a lot of money, right?” Kennedy asked him.
“No, I am paid enough for health insurance, but I have no stake in OpenAI,” Altman assured.
“I need a lawyer.” Kennedy answered.
Now, Altman has many attorneys who have seen their clients subjected to grueling interrogations, and they were sworn in Tuesday in a California federal court. They were investigating almost the same problem as Kenndy. Does Altman deserve control of the most advanced AI models?
“Didn’t you disclose to the U.S. Senate that you were interested in OpenAI through your Y Combinator fund holdings?” barked Steve Molo, the battle lawyer who led Elon Musk’s effort to shut down OpenAI’s for-profit operations.
Altman acknowledged that he had economic exposure to OpenAI through an LP position in the Y Combinator fund. “I didn’t mention it in that testimony, but again, I think there’s a good understanding of what it means to be a passive owner of a lot of venture funds,” Almtan said.
“Did you think Senator Kennedy was a very sophisticated investor when he asked you that question?” Molo answered.
Altman’s decision to volunteer no equity was interesting, even though he could have simply dodged the question. While that’s technically true, Altman, who emphasizes his expertise in investing in early-stage startups, clearly understands the economic exposure to OpenAI through his investments in Y Combinator and other AI companies that work with OpenAI.
Altman’s credibility was on trial yesterday, at least in the eyes of the plaintiffs. OpenAI’s lawyers accused their opponents of character assassination and argued that little has been done to advance Musk’s case. But jurors and Judge Yvonne Gonzalez Rogers are weighing Altman’s credibility as a pivotal figure in the case they are investigating.
Molo went through a slew of people who accused Altman of lying or misleading them while under oath in court, including former OpenAI board members Helen Toner and Tasha McCauley, Elon Musk and OpenAI co-founder Ilya Sutskever. He also brought up a recent New Yorker story detailing concerns about his integrity.
The “misfire” that occurred when OpenAI’s board briefly fired Altman and OpenAI Chairman Greg Brockman for not being candid in their explanations was a significant topic of discussion in the trial. Toner and McCauley, then board members, testified that Altman misled them, with McCauley citing a “toxic culture of lies.”
“I doubt that was the full reason for his firing,” Altman said. Asked whether he acknowledged what he said the board had been disingenuous, Altman responded, “They asked me to come back the next morning.”
The focus on his firing isn’t just limited to questions about Altman’s credibility. One of the key questions in the trial is whether OpenAI’s structure is consistent with its mission, and specifically whether its nonprofit board can exercise true control over its for-profit counterparts. From Musk’s lawyers’ perspective, the 2023 episode provides evidence that Altman’s influence over the company exceeded that of the board.
Witnesses brought by OpenAi and Microsoft argued that the nonprofit board now exercises control over the for-profit entity. Microsoft CEO Satya Nadella called Altman’s firing “amateur city.”
Bret Taylor, who joined OpenAI’s board as chairman after Altman’s rehiring, said he found no grounds for his dismissal and that Altman “was honest with me.” Dr. Zeko Kolter, a board member of OpenAI who focuses on AI safety, said no one has stood in the way of the work since he started in 2024.
But Taylor also made it clear that the choice to rehire Mr. Altman in 2023 was because his departure would effectively end OpenAI in a state of ongoing concern, and most of its employees would be willing to follow him. Now, as juries and judges decide whether the current structure is consistent with the organization’s mission, they may wonder whether the board can actually fire or discipline the CEO.
Asked if he planned to fire himself from the CEO position, Altman said he had no plans to do so. When asked if he could be trusted, he replied, “I believe I am an honest and trustworthy businessman.”
If you purchase through links in our articles, we may receive a small commission. This does not affect our editorial independence.
