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Elizabeth Lopatto

Elizabeth Lopatto

Senior Reporter

Senior Reporter

    More From Elizabeth Lopatto

    Elizabeth Lopatto
    Elizabeth Lopatto
    We are back from our break. William Savitt is taking it home for the OpenAI defense.

    There’s one more thing that Savitt is harping on. “Has the OpenAI nonprofit respected its general founding principles?” The question doesn’t matter, legally, since Musk didn’t create a charitable trust, but Savitt is going to spend some time on this because Molo emphasized it.

    Elizabeth Lopatto
    Elizabeth Lopatto
    Tesla AI is evidence of Musk’s failure, Eddy says.

    Musk doesn’t want to admit that trying to build an AGI lab in Tesla was a failure — whether that was by acquiring OpenAI or trying to poach all its talent, maybe even putting Altman on the board. Eddy suggests this case is revenge on OpenAI for succeeding.

    Elizabeth Lopatto
    Elizabeth Lopatto
    “The documents tell the truth here,” Eddy says.

    That’s kind of where I’ve landed! The idea of the “adjunct” for-profit (Eddy says this is a moving target, and though Musk used it twice in testimony, when Savitt used it, Molo objected and accused him of making up a term) doesn’t show up in any of the brainstorming structure documents. We do see parallel for-profits, and the idea of a conversion to a for-profit and shutting down the nonprofit. Jared Birchall also testified that he filed to register a company for this.

    Elizabeth Lopatto
    Elizabeth Lopatto
    Eddy suggests that Musk’s donated Teslas were, effectively, bribes.

    They went to Ilya Sutskever and Greg Brockman, among others, right before he proposed that he get 62.5 percent of a for-profit company. We are now looking at tax forms and letters — neither of which show any specific purpose. Jared Birchall also testified that there was no specific purpose for the donations. Shivon Zilis doesn’t remember it. Sam Teller doesn’t remember it. This is like watching the Warriors play a team of 6-year-olds.

    Elizabeth Lopatto
    Elizabeth Lopatto
    Eddy is, wisely, leaning hard on chronology in explaining their defense.

    Chronology and documents. Musk’s performance on the stand does give credence to the suggestion from Eddy that Musk “took his marbles and went home” when he couldn’t get his way.

    Elizabeth Lopatto
    Elizabeth Lopatto
    Sarah Eddy is giving the closing argument for OpenAI.

    She opens with a banger. Musk has said he made donations with strings attached. “Even the mother of his children can’t back his story.”

    Elizabeth Lopatto
    Elizabeth Lopatto
    Molo is done presenting Musk’s closing argument.

    I do wonder how this would have played in the hands of a better lawyer. Molo’s book report did not overwhelm me with confidence in his case, particularly because a lot of his point-blank assertions were profoundly arguable.

    Elizabeth Lopatto
    Elizabeth Lopatto
    For all of the very irritating testimony about “the blip,” Molo hasn’t convincingly connected it to his case.

    In all that chaos, Microsoft did suggest board members. But OpenAI didn’t take those suggestions — except one, well after the crisis. I don’t know man, I don’t really understand how this goes to the Microsoft case. It might be a suggestion the nonprofit board doesn’t really control the for-profit — but Helen Toner’s and Tasha McCauley kind of came off as amateurs in their approach, not least because there was no investigation before the firing.

    Elizabeth Lopatto
    Elizabeth Lopatto
    Molo is now attempting to make a case against Microsoft.

    So far he’s got “they’re a for-profit corporation,” “they know Musk was a co-founder,” and “they read the announcement OpenAI existed.” This is easily the thinnest part of a very thin case — on the OpenAI part, there’s at least Brockman’s diaries.

    Elizabeth Lopatto
    Elizabeth Lopatto
    During our break, the jurors were out of the room, and the lawyers were beefing again.

    During his speech, Molo told the jury he wasn’t asking for money. That is in fact not true — otherwise I wouldn’t be sitting through phase 2 of the trial next week. “You slipped it in nicely,” YGR says. But Molo needs to retract that statement.