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In OpenAI trial, former technology chief says Altman sowed 'chaos,' distrust among top executives

Published by Global Banking & Finance Review

Posted on May 6, 2026

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· Last updated: May 6, 2026

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In OpenAI trial, former technology chief says Altman sowed 'chaos,' distrust among top executives

Key Testimony and Implications in Elon Musk's Lawsuit Against OpenAI

By Greg Bensinger and Juby Babu

Overview of the Trial and Testimonies

SAN FRANCISCO, May 6 (Reuters) - A former OpenAI technology chief testified on Wednesday in Elon Musk's lawsuit that CEO Sam Altman sowed distrust among top executives as the company forged ahead with developing and broadly deploying its powerful artificial intelligence software.

“My concern was about Sam saying one thing to one person and completely the opposite to another person,” said Mira Murati, who was briefly CEO of OpenAI after its board temporarily forced out Altman in 2023. She said Altman was “creating chaos” and, at times, was deceptive with her and others.

Murati’s recorded testimony was played in Oakland, California, federal court, in the second week of a trial.

Background of the Lawsuit

Musk, the world's richest person, sued OpenAI in 2024 on the grounds that it improperly became a for-profit company, abandoned charitable goals and should turn back into a nonprofit.

If successful, Musk could benefit by hindering the commercial ambitions of a competitor to his own startup xAI, which is now part of SpaceX

Musk's Claims and Demands

Musk Seeking $150 Billion in Damages

The trial could determine the future of OpenAI, which, as a leading AI firm, has tremendous influence over development of the advanced software and its deployment into schools, government agencies and businesses.

Musk, a co-founder of OpenAI, is seeking $150 billion in damages to be paid by OpenAI and investor Microsoft to benefit the startup’s charitable arm.

Murati's Perspective on Company Leadership

Murati, who left OpenAI and has co-founded her own AI startup, said Altman pitted executives against one another and undermined her role as technology chief.

But she said she wanted him to remain CEO, and pressed board members for a fuller justification for ousting him in 2023.

“OpenAI was at catastrophic risk of falling apart,” Murati said. “I was concerned about the company completely blowing up.”

Concerns Over ChatGPT Release and Board Communication

Board's Reaction to ChatGPT Launch

Another former OpenAI official, onetime board member Shivon Zilis, hinted at some of the turmoil as the company prepared for the blockbuster release of chatbot ChatGPT.

She said the board "voiced extreme concern" about releasing ChatGPT "without any semblance of board communication."

Asked whether she raised concerns about Altman internally, Zilis said "there had been a couple of instances."

Zilis now works for Musk's Neuralink. She is also the mother of four of his children.

Conflicts Among Senior Executives

Testimony from Musk, OpenAI President Greg Brockman and others has sketched out a series of conflicts among senior executives and founders about how to drive and support growth of the company and whether Musk, whose early funding was crucial to launching the startup, should become CEO.

Surprises Revealed During the Trial

The trial has also brought surprises to light. Musk, for instance, attempted to settle with Brockman days before the trial began, and at one point felt like “a fool” for continuing to fund OpenAI. 

(Reporting by Greg Bensinger; editing by Peter Henderson, Rod Nickel)

Key Takeaways

  • Mira Murati testified via video on May 6, 2026, that Altman created internal chaos and distrust by conveying contradictory messages to senior leaders, undermining cohesion and her role as CTO and interim CEO. (cited from Reuters/Washington Post)(forbes.com)
  • Murati, who briefly served as OpenAI’s interim CEO following Altman’s November 17, 2023 removal, expressed concern the company could 'completely blow up,' yet she still supported Altman’s reinstatement and demanded explanations from the board.(forbes.com)
  • The courtroom hearing is part of Elon Musk’s 2024 lawsuit alleging OpenAI breached its promise as a nonprofit by becoming for-profit; Musk seeks $150 billion in damages and potential rollback to nonprofit status, framing the case as central to AI’s ethical trajectory.(theatlantic.com)

References

Frequently Asked Questions

What did OpenAI's former technology chief say about Sam Altman?
Mira Murati testified that Sam Altman sowed distrust among top executives and created chaos within OpenAI.
What is Elon Musk seeking in his lawsuit against OpenAI?
Elon Musk is seeking $150 billion in damages and for OpenAI to revert to a nonprofit structure, benefiting the startup’s charitable arm.
Why was Sam Altman temporarily ousted from OpenAI?
The board of directors forced out Altman amid concerns over his management and internal conflicts, according to court testimony.
How could the trial affect the future of OpenAI?
The trial could determine OpenAI's operating structure, commercial ambitions, and influence over AI's deployment in major sectors.
What internal issues were revealed during the OpenAI trial?
Testimony revealed executive infighting, unclear leadership roles, and differing visions for OpenAI’s growth and goals.

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