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OpenAI

OpenAI kicked off an AI revolution with DALL-E and ChatGPT, making the organization the epicenter of the artificial intelligence boom. Led by CEO Sam Altman, OpenAI became a story unto itself when Altman was briefly fired and then brought back after pressure from staff and Microsoft, an investor and close partner.

Elizabeth Lopatto
Elizabeth Lopatto
John Coates, OpenAI’s expert witness, is running a demolition derby on Musk’s expert witness.

Some highlights:

  • (while looking at a chart that the plaintiffs showed the jury) I paraphrase but: I don’t know how he thought his slide was a fair representation of anything, much less reality
  • “If he’s saying [the nonprofit] would own more of the for-profit if they hadn’t taken outside investment, that’s true, but then the pie would have been significantly smaller.” Coates would prefer 30 percent of a $200 billion than “a much larger share of a much smaller pie.”
  • The nonprofit has “benefitted enormously” from the for-profit “so I don’t understand his argument.”
Elizabeth Lopatto
Elizabeth Lopatto
Museum gift shop metaphor found dead in a ditch.

So during the opening statements, Musk’s lawyers said that a for-profit like a museum gift shop shouldn’t be bigger than a nonprofit, like a museum. We are now hearing from Daniel Hemel, OpenAI’s expert witness. Guess what? Museum gift shops generally aren’t for-profit; they’re part of the nonprofit. Also, OpenAI’s for-profit isn’t ancillary to the nonprofit — it’s how the nonprofit pursues its mission, like with the Mozilla Foundation and the Mozilla Corportation.

Hayden Field
Hayden Field
We’re listening to an expert witness, David Hemel, a law professor at NYU.

He said that “for a large nonprofit organization, having for-profit affiliates is very much the norm.” When asked, he also said that oftentimes, the for-profit affiliate of a nonprofit is “quite large compared to the nonprofit,” and he gave the Mozilla Corporation (which owns the Firefox web browser) and the Mozilla Foundation as an example. Hemel also testified that he’s getting paid $1,750 an hour to be here.

Hayden Field
Hayden Field
During Elon Musk’s all-hands Q&A before departing OpenAI, Achiam said he felt Musk wanted to “race towards AGI.”

He said Musk was concerned about Google DeepMind and CEO Demis Hassabis and “expressed a lot of concerns about what would happen if DeepMind got to AGI first.” Achiam said he shared his concern that trying to “race” towards the technology was a “fairly unsafe proposition … He was proposing to do something that seemed … obviously unsafe and reckless.”

Elizabeth Lopatto
Elizabeth Lopatto
Achiam is running circles around this lawyer on cross, without doing the annoying things other witnesses have done.

She quotes a tweet of his saying that he believes Musk was doing his best for humanity. He asks when that was. She says, January 2025. He says, well he’s done some things that undermined my confidence since then.
There’s a brief redirect, and then Achiam steps down. No trophy for the jury. :(

Elizabeth Lopatto
Elizabeth Lopatto
Okay, it’s time for the cross of Achiam.

“Are you aware that OpenAI employees are better-compensated than any other employees in startup history?” lol lady, why would he know that. Anyway, he’s got millions of dollars in OpenAI shares, and he’s also sold some for more than $10 million.

Elizabeth Lopatto
Elizabeth Lopatto
“I think he was just upset that he had been challenged,” Achiam said. “This was not friendly.”

In Musk’s testimony, he claimed he might have said something friendly like “don’t be a jackass” but denied he’d called anyone a jackass. Achiam’s testimony obviously contradicts that. Achiam received a trophy from Dario Amodei at the next meeting in commemoration of Achiam standing up to Musk: “Never stop being a jackass for safety.” The trophy is not introduced, sadly for me.

Elizabeth Lopatto
Elizabeth Lopatto
During the all-hands, Musk expressed concerns about what would happen if DeepMind got to AGI first,

“It sounded like he wanted to race toward AGI.” That sounded unsafe to Achiam. “He was proposing to do something that seemed, based on our understanding at the time, obviously unsafe and reckless,” Achiam said. “We had a pretty tense exchange, and he snapped and called me a jackass.” There were 50 or 60 people at that meeting.

Elizabeth Lopatto
Elizabeth Lopatto
“It was a bit like seeing Bigfoot through Plexiglass,” Achiam says of seeing Elon Musk in the office.

He had a notable interaction with Musk, though, during the all-hands when Musk was departing the organization in Feb. 2018. Musk explained that he was leaving because he had a new conflict of interest with Tesla, which would be hiring from the same pool of researchers — and indicated a general lack of confidence in OpenAI’s path

Hayden Field
Hayden Field
Ilya Sutskever would get up on tables to give speeches in the early days of OpenAI.

That’s according to Josh Achiam, currently the company’s chief futurist, who joined in 2017. He said Sutskever’s impassioned speeches would typically be about the science-fiction-esque future that was approaching.

Hayden Field
Hayden Field
Achiam talked about the roles of Greg Brockman and Ilya Sutskever in OpenAI’s early days.

He said Brockman and Sutskever were the “main leaders,” and that Brockman was the “engineering workhorse that pushed to build scaled-up systems that would train the AI and make it work.” Achiam called Sutskever a “scientific visionary” who articulated what the future would be like, such as football fields of silicon chips making large-scale calculations.

Hayden Field
Hayden Field
Josh Achiam described what it was like to work at OpenAI in 2017.

He said when he joined, OpenAI was a team of about 50 people, and that it essentially felt like “an extension of a graduate student lab in a university” — a “collegiate, academic, super intellectual” environment — with most employees being either current PhD students or recent graduates. He said he appreciated that there wasn’t a “publish or perish” type of culture at the time.

Elizabeth Lopatto
Elizabeth Lopatto
Achiam started at OpenAI as an intern in the summer of 2017, and became a full-time employee in December.

His job was safety research then. He is now the “chief futurist” at OpenAI, where he tries to think about side-effects of AI (such as social impacts, economic impacts, and consequences for national and international security). “It is my best attempt to have us fulfill the mission of OpenAI,” he says. The idea is to ensure AGI benefits everyone, he says. It’s “one of the highest and noblest callings we could possibly have.”

Elizabeth Lopatto
Elizabeth Lopatto
Hi my name is Josh Achiam and welcome to “will we see the jackass trophy?”

He is establishing his background right now. You will be just shocked to hear that he’s into science fiction. This is the witness we may see the jackass trophy for. I am on the edge of my seat.

Elizabeth Lopatto
Elizabeth Lopatto
Fairly stupid choice by Musk’s lawyers to go after Microsoft’s major decision rights.

Microsoft had an approval right on some transactions. It did not have the majority of the board. That’s even though they contributed more than 90 percent of OpenAI’s initial investments. Also, all LPs had major decision rights, Wetter testifies. So this is less control than Musk wanted for more money.

Elizabeth Lopatto
Elizabeth Lopatto
Musk cross. I guess we are now going to have a fight about due diligence.

“We did not talk to Elon Musk during out due diligence process,” Wetter notes. He’s not a party to OpenAI’s agreements with Microsoft. A lot of the direct was “Are there any agreements with Elon Musk here? Are there any there?”

Elizabeth Lopatto
Elizabeth Lopatto
“Our due diligence found no conditions related to Elon Musk,” Wetter says.

We have just gone through the terms of a very boring document. I will spare you. That’s the top line.

Elizabeth Lopatto
Elizabeth Lopatto
Mike Wetter for Microsoft is taking the stand now.

He lead corporate development at Microsoft, where he’s worked for almost 20 years. We saw this deposition earlier as part of Musk’s case. He did a bunch of the work on the 2021 and 2023 OpenAI deals. I believe he is here to talk about Microsoft’s due diligence and also to put the deal in context — “we’ve done over 100 transactions including acquisitions and investments,” in aggregate value of $100 billion.

Elizabeth Lopatto
Elizabeth Lopatto
Scott, who is wearing sneakers and a black crew neck under his blazer, seems quite pleasant on cross.

He also doesn’t remember a bunch of things Musk’s lawyer is asking about. I fully believe him on this — feels like Scott’s only real interest is the tech. He was so happy talking about Azure and he is very lost talking about partnership agreements.

Elizabeth Lopatto
Elizabeth Lopatto
We are now getting cross-examination from Musk’s lawyer.

She seems confused by a CTO not knowing what revenue had been generated. Scott noted he was not the chief revenue officer. He seemed amused.

Elizabeth Lopatto
Elizabeth Lopatto
Microsoft’s CTO Kevin Scott is on the stand.

He has testified that the company liked the idea of partnering with OpenAI in part because it would show how to build out Azure for AI frontier research. It’s pleasantly boring.

Elizabeth Lopatto
Elizabeth Lopatto
In his testimony, Musk said he never called anyone a jackass.

He said he sometimes used strong language at work, but might have said something like, “Don’t be a jackass.” So in addition to being hilarious, the trophy also makes him look like a liar.

Elizabeth Lopatto
Elizabeth Lopatto
Incredible evidence dispute this morning.

There is a trophy that OpenAI has brought in, that’s half of a donkey — the back half — and says, “Never stop being a jackass.” It’s a commemoration OpenAI employees bought for another employee that Musk called a jackass on the way out on his last day. Musk’s team does not want the trophy in evidence.

Lauren Feiner
Lauren Feiner
OpenAI endorses the Kids Online Safety Act.

It joins a handful of other tech companies like Snap and Microsoft in supporting the bill, while major tech groups maintain opposition. The announcement comes as a key Senate committee prepares to move forward on its version of KOSA, after a House committee passed a largely overhauled version.

Sam Altman was winning on the stand, but it might not be enough

Elon Musk may have done more long-term reputational damage to the OpenAI CEO.

Elizabeth Lopatto
Hayden Field
Hayden Field
About 200 people work on safety at OpenAI.

Kolter laid out OpenAI’s different safety groups: the safety systems team, which works on guardrails and evaluations; the preparedness team, which deals with OpenAI’s preparedness framework; the alignment team, which helps train models on ways that “align with human values”; the model policy team, which develops the model spec; and other teams focusing on investigations. When speaking about the controversial dissolution of OpenAI’s superalignment team and AGI readiness team, he said some of that research is being done by other teams.

Hayden Field
Hayden Field
The chair of OpenAI’s safety and security committee said they’ve formally delayed its model releases.

Dr. Jeremy “Zico” Kolter said that so far, there have been two times when the committee “formally requested a delay of models.”

Elizabeth Lopatto
Elizabeth Lopatto
Irritatingly, no one has asked him why he’s called “Zico.”

Anyway, he’s a member of the nonprofit board of the OpenAI foundation, but not the for-profit. He’s a safety expert.

Elizabeth Lopatto
Elizabeth Lopatto
Altman steps down. We are now hearing from Jeremy “Zico” Kolter.

He’s a Carnegie Mellon prof who focuses on safety and security.

Elizabeth Lopatto
Elizabeth Lopatto
We’re on redirect with Savitt and we’re looking at the “bait and switch” texts.

Altman said — and evidence in the direct showed — that Altman had made sure Musk knew about Microsoft. “I would often have to remind Musk of things, but this one I assumed we had talked about enough times that he would remember,” Altman says. Of Musk’s attitude toward OpenAI, he says, “we were kind of left for dead.”

Elizabeth Lopatto
Elizabeth Lopatto
Microsoft establishes that OpenAI has other investors...

And that Musk hasn’t sued any of them. Softbank’s investment is bigger — so is Nvidia’s and so is Amazon’s. That’s all from Microsoft.

Elizabeth Lopatto
Elizabeth Lopatto
We see the Musk “bait and switch” texts again.

In response, Altman texted, “I agree this feels bad — we offered you equity when we established the cap profit, which you didn’t want at the time but we are still very happy to do any time you like.” Molo tries to ask if this is a bribe — if Altman is trying to say that if Musk lets him get away with stealing from a charity, he’ll split the loot. Savitt objects, YGR sustains.

Elizabeth Lopatto
Elizabeth Lopatto
What if we had a drinking game for this trial?

Granted we’d all be dead as a result because who can keep up with this but... Drink every time:

  • Someone says “Dota” or “Dota 2”
  • “I don’t recall”
  • “I disagree with that characterization”
  • “Stole a charity”
  • “Was Microsoft there?”
  • YGR snaps at someone
  • YGR says something nice to the jury
Elizabeth Lopatto
Elizabeth Lopatto
Musk says, “This is a bait and switch” in a October 2022 text chain.

Molo says, isn’t he saying you stole a charity? Altman looks confused. “No?”

Elizabeth Lopatto
Elizabeth Lopatto
Molo is not doing especially impressive lawyering here.

It’s funny that he’s on the team alleging money overrode ethics, because, well, I guess it takes one to know one? Throughout the case, we’ve seen a number of own goals from the Musk team. This morning, when the Musk team was requesting to ask questions about safety concerns with AI, YGR snapped, “What else do you think you want to do? Because you do not want to be held in contempt I guarantee you.” She’s tough with lawyers as a general rule, but woof.

Hayden Field
Hayden Field
Molo asked Altman if he’d ever fire himself as CEO of the OpenAI for-profit.

“I have no current plans to do so,” Altman replied, adding, “I’ve never thought about it before.”

Elizabeth Lopatto
Elizabeth Lopatto
“The blip” again.

Y’all I am so sick of this. We are literally litigating a week in 2023.

Elizabeth Lopatto
Elizabeth Lopatto
Well, I do love a long inquiry into the linear nature of time.

Molo is asking about a series of terms on the Microsoft deal that were developed post 2020. None of them are on the 2018 term sheet because they hadn’t been negotiated yet. Fascinating stuff from Molo — is this really the best use of his time?

Elizabeth Lopatto
Elizabeth Lopatto
The difference between Musk and Altman on cross is really stark.

While Musk was ready to get into a fight over anything and everything, Altman has rather mildly answered every insulting question Molo has asked him. Molo has just accused Altman of lying on his direct examination about Musk trying to tuck OpenAI into Tesla. In his deposition, Altman says he’s not sure one way or the other about that and then asks to scroll to the top of the deposition for context. Molo says no. A juror smiles. I expect I know what we’re going to see on the redirect.