More from All of the updates from Elon Musk and Sam Altman’s battle over OpenAI

Molo keeps interrupting himself to restate things or say things like “remember the residuals?” It’s really important in closing to tell a straightforward, easy-to-follow story here, because this is where you put together all the testimony into your case. I know Molo’s got an uphill battle on the facts here, but this could be smoother. He did also just call Greg Brockman “Greg Altman.”

And that the “important constraints” of the capped-profit structure in the first two Microsoft investments did not breach the charitable trust. However, the 2023 investment”changed the world. Altman, Brockman, and OpenAI breached the charitable trust created by Elon” by enriching investors and insiders at the expense of the nonprofit and not open-sourcing the technology.

That money grew OpenAI “so the defendants could do these things that they’re doing now, that they shouldn’t do.” Sam Altman, seated in the courtroom, looks confused by this.

I disagree! I think that’s Ilya Sutskever, frankly. Those two did the least amount of beefing on the cross-exam, it’s true. But I am against the Sutskever erasure here — not least because he impressed a number of us in the peanut gallery. I’m sorry I keep bickering with Molo in these updates but a lot of what he’s saying is profoundly arguable. Sir, I was here the whole time!

Molo agrees that OpenAI needed money for compute. He is annoyed that a “brainstorming session” is being cast as evidence that Musk wanted to abandon OpenAI’s non-profit mission.

Of OpenAI’s founding as a charity, Molo says, “If he wanted to found a for profit business there was nobody in California or the planet who would be better suited and know how to do it than Elon Musk.” xAI, Musk’s struggling AI business that was acquired by SpaceX and is facing an awful lot of lawsuits about its habit of making deepfake porn, suggests otherwise. Anthropic, for instance, does not seem to be having these problems.

Molo asks the jury to imagine they are on a hike and come across a wooden bridge over a gorge, with a river 100 feet below. It looks a little scary but “a woman standing by the entry to the bridge says, ‘Don’t worry the bridge is built on Sam Altman’s version of the truth,’” Molo says. “Would you walk across that bridge? I don’t think many people would.”

Look, this case is full of liars. It just is! The biggest problem for his side is the contemporaneous written evidence.

“Are you completely trustworthy?” was the first question, and Altman’s answer is “I believe so.” So here’s the thing. I am largely trustworthy unless you leave your french fries unattended near me. What’s the best way to answer that question under oath? “If you are a truthful person, wouldn’t you say, ‘I am absolutely trustworthy?’” Molo asks. Well, I’m truthful. That’s how you know I might eat your french fries. Come on, man.

“17 times during his testimony I had to ask him to answer the question,” Molo says. Dude, you don’t want this. If they’re considering conduct, they’re considering your client’s conduct, which was remarkably bad.

“He’s sorry he could not be here,” Molo says. He’s thumping on how important jury service is, which is never a good sign in a closing statement.

I will spare you. This should go on for 20-30 minutes, she tells us.

First there was a dongle. Then there was an attempt to move it. YGR took the opportunity to chew out Musk’s team for not consulting OpenAI about the monitor. There appeared to be no way for OpenAI to access the monitor and so it has been carried out. I am sitting next to the reporter from Wired and we are trying not to die of laughter.

OpenAI is concerned it will obscure the view of the defendants, and also that Musk’s team has refused to share it so they can it for their case as well. YGR says Musk’s team can use it if OpenAI’s team can use it, but it does need to be moved. “I wish you would have said something yesterday” about the monitor, she says to Musk’s team.

YGR is on the bench, and we are going through assorted issues before the jurors come in. It seems that YGR got page numbers on a set of demonstratives from Musk’s team and OpenAI’s team did not. “I would suggest you not use this,” YGR says of the slide at issue. Good morning!

U.S. District Judge Yvonne Gonzalez Rogers, the judge presiding over Musk v. Altman, had told Musk when he left the stand that he was not excused from the trial and that he was still under “recall status,” meaning he should stay nearby and ready to testify. But he’s currently in Beijing…

There is no rebuttal case from Musk’s team. We will get closing statements tomorrow.

It was on “functional expsenses,” ie, salaries, compute, etc. The cross is just arguing about the methodology of accounting for commingled money in the donated accounts. I can’t believe we are having a methodology dispute about this. I may die.

John Coates noted that he’s worked for a lot of law firms as an expert witness, including Quinn Emanuel, Musk’s primary firm — and not the one trying the case today. He is excused. The judge is now huddling in sidebar with the primary lawyers for the case, and an animated discussion is taking place.

Also, he apparently has worked as an expert witness on a few Twitter cases, including the one where Musk tried to get out of buying Twitter. Incidentally, OpenAI’s lawyers are also the ones who made Musk buy Twitter. Is that deliberate shade? Who can say.

Some highlights:

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.

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.

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.”

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. :(