Elon Musk exposes AI safety rift with Larry Page as OpenAI faces scrutiny in court

In a revealing courtroom testimony, Elon Musk described a deepening divide with Larry Page over the future of artificial intelligence, saying their once-close discussions on safety ultimately led him to lose confidence in Page’s approach.

“I was very close friends with Larry Page at Google,” Musk told the court, recalling long conversations about the risks of AI. “At a certain point it was clear to me Larry Page was not sufficiently caring about AI … We had to have a counterpoint against Google.”

The remarks shed light on the early tensions that shaped the trajectory of OpenAI, which Musk co-founded before later distancing himself from the organization.

However, Musk’s stance on AI safety itself came under scrutiny. Attorney Savitt, in his opening statement, argued that safety was not a genuine priority for Musk, alleging that he dismissed OpenAI employees who focused on it. “Jackasses is what he called them,” Savitt told the court.

Musk, for his part, maintained that he played a critical role in OpenAI’s early development. He said he contributed about $38 million to support its founding mission and leveraged his industry influence to secure computing resources. According to his testimony, he personally reached out to Satya Nadella and Jensen Huang to bolster the company’s technical capacity.

OpenAI, which was initially structured as a nonprofit, transitioned to a for-profit entity just 13 months after Musk exited its board—a shift that has remained central to ongoing debates about its mission and governance.

Defending one of its key partners, Microsoft’s legal counsel Russell Cohen told the court the company had acted responsibly throughout its involvement. Microsoft, he said, had been “a responsible partner every step of the way.”

The case unfolds against the backdrop of intensifying competition in the AI sector. OpenAI faces growing pressure from rivals such as Anthropic, while continuing to invest billions into computational infrastructure to sustain its rapid growth.

A potential public listing could push OpenAI’s valuation to as high as $1 trillion, according to reports by Reuters. Meanwhile, Musk’s own AI venture, xAI, lags behind OpenAI in terms of user adoption. He has since integrated the business into SpaceX, which itself is eyeing a potential IPO that could rank among the largest ever.

In a further evolution of its structure, OpenAI restructured late last year into a public benefit corporation. Under the new model, its nonprofit arm retains a 26% stake, along with additional warrants tied to future valuation milestones, while investors—including Microsoft—hold significant equity.

The courtroom battle now offers a rare window into the competing visions, alliances, and tensions that continue to shape the future of artificial intelligence at the highest levels.