OpenAI Trial — Zilis Testifies Musk Pitched Tesla Merger and Offered Altman Board Seat

CNBC reported Thursday that a key witness in the OpenAI trial revealed Elon Musk once proposed merging the AI startup into Tesla and sweetened the pitch by offering Sam Altman a seat on the electric vehicle company’s board.

Zilis Takes the Stand in Oakland

The testimony came from Shivon Zilis, a former OpenAI board member who has four children with Musk. She appeared on Wednesday during the second week of the Musk v. Altman trial in Oakland, California. Zilis described her role at OpenAI as a liaison connecting Musk, Altman, Greg Brockman and co-founder Ilya Sutskever. She told the court that the four executives debated OpenAI’s corporate structure “ad nauseam,” cycling through numerous for-profit configurations. The Tesla-merger proposal was one option raised during that period, roughly 2017 to 2018.

What Musk Wanted From OpenAI

Musk, who had already taken the stand earlier in the trial, acknowledged some comfort with a for-profit element at OpenAI. He argued, however, that commercial interests eventually overtook the charitable mission. He accused Altman and Brockman of effectively attempting to convert a charity into a private enterprise for personal gain. Zilis also testified that Musk briefly entertained building a rival AI operation inside Tesla itself, though that plan was never executed. In 2023, Musk instead launched xAI, an independent AI company that he subsequently merged with SpaceX earlier this year.

Background on the Lawsuit

Musk co-founded OpenAI in 2015 alongside Altman and Brockman. He departed in 2018, before the company established a for-profit subsidiary. That subsidiary and its expansion sit at the heart of his 2024 lawsuit, which alleges that Altman and Brockman broke foundational commitments to keep OpenAI mission-driven and nonprofit. Microsoft CEO Satya Nadella and Altman himself could still be called to testify before the trial concludes.

Zilis and the Confidentiality Agreement

Zilis also addressed her personal relationship with Musk during testimony. She said the two had agreed to keep his involvement in their children’s lives confidential, primarily for security reasons tied to his public profile. She informed Altman of Musk’s paternity only after learning the information was about to become public through press reporting. OpenAI permitted her to retain her board seat at that time. She ultimately resigned from the board in 2023 once Musk moved forward with founding xAI.

The trial is expected to hear from additional senior executives in the coming days.