Summary
Former OpenAI Chief Scientist Ilya Sutskever told a California court on Monday that his stake in the artificial intelligence company is worth about $7 billion as he provided testimony in the lawsuit brought by Elon Musk against OpenAI. The case addresses governance at the startup that popularized widespread AI use through ChatGPT and that has been securing investor funding to expand computing capacity ahead of a possible trillion-dollar IPO.
Sutskever's valuation statement came as part of testimony in the high-profile legal dispute in which Musk is seeking sweeping changes to OpenAI's governance and $150 billion in damages from OpenAI and Microsoft, one of OpenAI's largest investors. The trial has featured testimony from a range of current and former OpenAI executives and corporate leaders.
During his appearance, Sutskever said he had considered taking steps to remove Sam Altman as OpenAI's CEO for at least a year before the November 2023 board vote that culminated in Altman's dramatic dismissal and subsequent rehiring. Sutskever described Altman's behaviour as undermining, including pitting executives against one another, and said that such conduct was "not conducive to any grand goal," specifically citing the objective of creating safe artificial general intelligence.
Sutskever acknowledged his participation in the events of November 2023. At that time he served on OpenAI's board and was involved in orchestrating Altman's firing. He later left OpenAI in 2024 and founded a new startup, Safe Superintelligence.
Also testifying earlier on Monday was Microsoft Chief Executive Satya Nadella. Nadella characterized Microsoft’s investment in OpenAI as a "calculated risk," and emphasized that the company viewed its early investments as delivering worthwhile marketing benefits. The presence of Nadella’s testimony underscores Microsoft's role as a major investor in OpenAI and its prominence in the litigation.
The trial record includes testimony from several other current and former OpenAI executives. Named witnesses have included OpenAI President Greg Brockman, Mira Murati, and Shivon Zilis, each of whom has already provided testimony in the proceedings. Musk has offered testimony of his own, saying he was aware of early discussions about converting OpenAI into a for-profit entity but that he had been reassured by Altman it would remain nonprofit.
The legal dispute has potential implications for OpenAI's governance framework and the financing strategy the company has pursued as it scales computing resources ahead of a potential IPO that has been described in testimony as potentially reaching a trillion-dollar valuation. The complaint against OpenAI and Microsoft seeks $150 billion in damages and changes to how the company is governed.
Separately, financial evaluation products referenced in the courtroom coverage noted that ProPicks AI evaluates MSFT alongside many other companies using a broad set of financial metrics. The referenced evaluation system aims to assess fundamentals, momentum, and valuation without bias in identifying investment opportunities.
Contextual note - The trial is ongoing and the testimony reflects claims and recollections presented in court. The matters described here are based on statements made during testimony and filings in the litigation.