- Shivon Zilis, Elon Musk’s romantic partner and a former OpenAI board member, testified that Musk advocated for OpenAI to become a subsidiary of Tesla — a proposal rejected by Sam Altman, Greg Brockman, and Ilya Sutskever.
- OpenAI accused Zilis of acting as a Musk proxy on the board, alleging she failed to disclose that Musk was the father of her twins while she served as a director.
- Zilis testified that Musk left the OpenAI board in 2018 partly over concerns that Tesla and OpenAI would compete for AI engineering talent — and that he recruited a top OpenAI researcher to Tesla days before his departure.
- The stakes are enormous: Musk is seeking up to $180 billion in damages and the removal of Altman and Brockman from leadership, as well as unwinding OpenAI’s recent conversion to a more traditional corporate structure.
What Happened?
Shivon Zilis took the stand in Oakland federal court in the high-stakes lawsuit between Elon Musk and OpenAI. Under questioning, she testified that Musk had advocated for OpenAI to become a Tesla subsidiary — a proposal the OpenAI co-founders declined. She also testified that Musk recruited a senior OpenAI AI researcher to Tesla just days before stepping down from the board in 2018, citing concerns about the two organizations competing for talent. OpenAI lawyers portrayed Zilis as a close Musk adviser who withheld her personal relationship with him from the board, including the fact that he had fathered her children via IVF.
Why It Matters?
This trial could reshape the AI industry. Musk is seeking removal of Altman and Brockman, $180 billion in damages redirected from OpenAI’s for-profit arm back to its nonprofit parent, and an unwinding of the company’s recent corporate restructuring. Even one successful remedy could destabilize OpenAI at the moment it’s preparing for an IPO and competing intensely with Google, Anthropic, and xAI. The Zilis testimony also puts a human face on the complex web of personal and professional relationships that shaped one of the most important technology companies in history.
What’s Next?
The trial continues with more testimony expected from key figures in the AI world. Watch for Altman’s response to the Tesla-takeover allegation and further cross-examination of Zilis. A ruling in Musk’s favor on any major remedy would send shockwaves through the entire AI sector. The case also has implications for nonprofit governance standards in the tech world — particularly around disclosure obligations for board members with conflicting personal and professional relationships.
Source: The Wall Street Journal
