Greg Brockman Defends $30B Open AI Stake: ‘Blood, Sweat, and Tears’ | WIRED

Overview

Greg Brockman Defends $30B Open AI Stake: ‘Blood, Sweat, and Tears’

Two days before the Musk v. Altman trial began, Elon Musk asked Open AI cofounder and president Greg Brockman about reaching a settlement. When Brockman suggested both sides drop their claims, Musk responded, “By the end of this week, you and Sam [Altman] will be the most hated men in America. If you insist, so be it.”

Details

The message—which Open AI’s lawyers made public on Sunday, and which Judge Yvonne Gonzalez Rogers subsequently refused to let the jury hear about—underscores what may be Musk’s larger goal in this trial. He appears to be trying to not only win over the jurors to potentially remove Brockman and CEO Sam Altman from power, but also stir up dirt on the two men and damage Open AI’s public image.

As Brockman took the stand on Monday, Musk’s attorney Steven Molo quickly started questioning him about his compensation at Open AI. Brockman revealed that his equity stake at Open AI is currently worth more than

20 billion, and perhaps up to

30 billion. While Brockman initially promised to donate $100,000 to Open AI when it was being set up, he said he ultimately never followed through.

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Brockman has held a number of instrumental roles at Open AI since he cofounded the company in 2015. In the startup’s early days, it operated out of his apartment in the Mission District of San Francisco. Today, he’s deeply involved with refocusing Open AI on a few key products, such as Codex. In the past year, Brockman has also given millions to super PACs promoting AI and President Trump, and has previously said this increased political spending is related to Open AI’s founding mission to create artificial general intelligence that benefits all of humanity.

In court on Monday, Molo tried to make the case that Brockman and Altman had essentially looted Open AI’s original nonprofit, which Musk funded and helped create.

In its early days, Open AI told investors and employees that its nonprofit mission took precedence over generating profit. Brockman testified that his financial interests are still, to this day, second to Open AI’s nonprofit mission.

When Open AI created its for-profit arm in 2019, which received assets from the nonprofit, Brockman testified that he was given a significant stake in the new entity. Early in Open AI’s history, Brockman had referenced wanting to be a billionaire, writing in his personal journal, “Financially what will take me to $1B?”

On Monday, Molo pressed Brockman for several minutes about the vast wealth he had accumulated beyond his initial goal.

“Why not donate that $29 billion to the Open AI nonprofit? Why didn’t you do that?” Molo asked. Brockman responded that he and others had poured “blood, sweat, and tears” into building Open AI in the years since Musk left the company.

Open AI’s foundation holds a stake of over

150 billion in the company, making it one of the richest nonprofits in history, Brockman said. That’s roughly five times Brockman’s ownership interest. Altogether, Open AI employees hold about 25 percent of shares. The foundation has 27 percent. Brockman testified that Open AI’s nonprofit had received less than

150 million from donors, implying Musk had been incidental to the company’s success and that the real drivers were those who stuck around to build out Open AI.

Of course, Brockman’s stake in Open AI could be worth much more than $30 billion if the company successfully goes public in the next two years. When asked whether Open AI was exploring a potential IPO, Brockman said he believes so.

Brockman testified that he thought Open AI’s nonprofit mission had given it “moral high ground” over competitors like Google Deep Mind. Molo asked Brockman several times whether he thought his actions, such as not donating

100,000 to Open AI and then obtaining a stake worth nearly

30 billion, made him “morally bankrupt.” Brockman said he didn’t think so.

Molo also asked Brockman about his allegiance to Altman. Emails revealed in the case show that Brockman was initially paid at Open AI with a $10 million stake in Altman’s family office. Brockman testified that Musk was not immediately made aware of this, but he and Altman disclosed it in 2017 when Musk asked.

Brockman also testified that he has invested in several companies that signed major partnerships with Open AI, including Cerebras, Core Weave, and Helion Energy. Altman’s history of investing in companies that work with Open AI has faced extensive scrutiny. But Brockman’s potentially conflicting ties had received comparatively less attention until Monday.

Answering questions from Musk’s attorneys, Brockman was almost robotic in his responses. So far, Open AI’s president has watched every day of the trial’s proceedings. As he testified, Altman sat on a bench in the public gallery, staring down at the ground and looking somewhat dismayed. Brockman’s wife, Anna—who held his hand upon entering the courtroom—sat behind Altman fidgeting with a KN95 face mask in her hand. But during cross-examination, Brockman appeared more animated, smiling as he told his side of the story and recounted the early days of Open AI.

By Brockman’s telling, when Musk left Open AI’s board, he threatened to start a competing AI lab within Tesla. Asked whether Tesla had ever considered being a nonprofit, or open sourcing its technology, Brockman responded simply, “No.”

Musk’s lawyers are expected to have another chance with Brockman on Tuesday before potential testimony from Musk confidante Shivon Zilis.

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Key Takeaways

Greg Brockman Defends $30B Open AI Stake: ‘Blood, Sweat, and Tears’
Two days before the Musk v
The message—which Open AI’s lawyers made public on Sunday, and which Judge Yvonne Gonzalez Rogers subsequently refused to let the jury hear about—underscores what may be Musk’s larger goal in this trial
As Brockman took the stand on Monday, Musk’s attorney Steven Molo quickly started questioning him about his compensation at Open AI
Are you a current or former tech worker who wants to talk about what's happening