Sam Altman: A Question of Trust

In May 2023, OpenAI CEO Sam Altman appeared before Congress, testifying under oath regarding the regulation of artificial intelligence. During this session, Senator John Kennedy of Louisiana inquired about Altman's proposals for licensing advanced AI models and whether he might be qualified to lead a hypothetical AI regulatory body.

“I love my current job,” Altman stated, eliciting a ripple of amusement.

“You make a lot of money, do you?” Kennedy probed further.

“No, I’m paid enough for health insurance, I have no equity in OpenAI,” Altman clarified.

“You need a lawyer,” Kennedy quipped in response.

Currently, Altman is accompanied by numerous legal counsel, who observed as their client endured an intense cross-examination while sworn into a California federal court on Tuesday. The central inquiry mirrored Kennedy’s earlier question: is Altman truly qualified to oversee the most advanced AI models?

“You didn’t disclose to the United States Senate that you had an interest in OpenAI through a share in a Y Combinator fund, did you?” demanded Steve Molo, the aggressive attorney spearheading Elon Musk’s lawsuit to dismantle OpenAI’s for-profit operations.

Altman conceded that he did possess economic exposure to OpenAI via his limited partner position in the Y Combinator fund. "I didn't mention it in that testimony, but, again, I think it is well understood of what it means to be a passive owner of many venture funds," Altman explained. "You thought Senator Kennedy was a very sophisticated investor when he asked you that question?" Molo retorted.

Altman’s voluntary declaration about not holding equity, when he could have simply bypassed the question, was noteworthy. While technically accurate, Altman—who emphasized his expertise in early-stage startup investments—undoubtedly understood his financial ties to OpenAI through Y Combinator, and through investments in other AI companies collaborating with OpenAI.

Altman's credibility was under scrutiny yesterday, at least from the perspective of the plaintiffs. OpenAI's attorneys contended that little progress had been made on Musk's case, accusing their counterparts of character assassination. Nevertheless, the jury and Judge Yvonne Gonzalez Rogers are evaluating Altman's credibility as a pivotal figure in the events under examination.

Molo presented a series of individuals who accused Altman of misrepresentation or deception while under oath in the courtroom, including former OpenAI board members Helen Toner and Tasha McCauley, Elon Musk, and OpenAI co-founder Ilya Sutskever. He also referenced a recent New Yorker article detailing concerns about Altman's honesty.

The "blip"—the brief period when OpenAI's board terminated Altman and OpenAI president Greg Brockman for lack of candor—has been a significant point of discussion during this trial. Then-board members Toner and McCauley testified that Altman had misled them, with McCauley describing "a toxic culture of lying."

"I do have doubts that was the full reason" for his firing, Altman stated. When asked again to acknowledge the board’s assertion that he had not been candid with them, Altman responded, "they asked me to come back the next morning."

The focus on his dismissal extends beyond merely questioning Altman's credibility. A key aspect of the trial is whether OpenAI's organizational structure aligns with its mission, specifically whether the non-profit board can exert genuine control over the for-profit entity. From the perspective of Musk's legal team, the 2023 incident provides evidence that Altman’s influence over the company surpassed that of its board of directors.

Witnesses presented by OpenAI and Microsoft have maintained that the current non-profit board does exercise control over the for-profit division. Microsoft CEO Satya Nadella characterized Altman’s firing as "amateur city."

Bret Taylor, who assumed the role of OpenAI’s board chair following Altman’s rehire, stated that he found nothing warranting Altman’s termination and that Altman has been "forthright with me." Dr. Zeko Kolter, the OpenAI board member focused on AI safety, affirmed that no one has interfered with his work since he began in 2024.

However, Taylor also clarified that the decision to rehire Mr. Altman in 2023 was driven by the understanding that his departure would effectively end OpenAI as a viable enterprise, given that most employees intended to follow him out. Now, as the jury and Judge deliberate on whether the current structure fulfills the organization’s mission, they will consider if the board can truly dismiss or discipline its CEO.

Asked if he would ever fire himself as CEO, Altman stated he had no such plans. When questioned about his trustworthiness, he replied, "I believe I am an honest and trustworthy business person."