Murati’s recorded testimony was played on Wednesday in Oakland, California, during Elon Musk’s lawsuit against OpenAI.

Musk accuses the company of abandoning the nonprofit mission it started with and turning into a profit-driven business tied to Microsoft.

Speaking about Altman’s leadership, Murati said: “My concern was about Sam saying one thing to one person and completely the opposite to another person.” 

She added that he was “creating chaos” inside the company and, at times, was deceptive with her and other executives.

The testimony focused heavily on the leadership situation that shook OpenAI in November 2023. At the time, the board removed Sam Altman as chief executive before bringing him back just days later, while Mira Murati briefly served as interim CEO during that period.

She told the court she still wanted Altman to remain chief executive, although she pressed board members for clearer reasons behind the decision to remove him. At the same time, she warned that the company faced serious internal problems.

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

Murati later left OpenAI in 2024 and went on to co-found Thinking Machines Lab.

Another former OpenAI board member, Shivon Zilis, also gave evidence in the case. Zilis said the board had “extreme concern” about the release of ChatGPT without proper communication with directors.

Asked whether concerns about Altman had been raised internally, Zilis replied: “There had been a couple of instances.”

Zilis now works at Elon Musk’s Neuralink and is also the mother of four of Musk’s children.

The lawsuit, filed by Musk in 2024, argues that OpenAI moved away from its original charitable purpose after receiving billions of dollars from Microsoft. Musk claims the company effectively became tied to Microsoft’s commercial interests instead of serving the public good.

Microsoft has invested more than $13 billion in OpenAI since 2019 and supplies the computing power behind products such as ChatGPT and Copilot through its Azure cloud platform.

Musk is seeking $150 billion in damages and wants the money directed to OpenAI’s charitable arm. He is also pushing for Altman’s removal and wants the company’s for-profit structure dissolved.

Court proceedings have also revealed challenges between OpenAI’s founders and executives over control of the company, its rapid growth and the race to develop artificial general intelligence, often called AGI.

Some witnesses told the court that the company reaching AGI first could gain enormous economic and political influence worldwide.

The case also reveals Musk’s competition with OpenAI. His own artificial intelligence company, xAI, has expanded rapidly and merged with SpaceX in 2026 in a deal that reportedly valued the combined business at about $250 billion.

During the trial, it also emerged that Musk tried to settle with OpenAI president Greg Brockman shortly before proceedings began. According to testimony, Musk warned that Altman and Brockman could become “the most hated men in America.”

Schulman, known for his major role in the development of OpenAI’s chatbot ChatGPT, said a desire to heighten his focus on AI alignment is the primary reason for his departure. 

Alignment, the science of ensuring AI systems behave as intended, has become a central concern in the rapidly evolving field.

“I’ve decided to pursue this goal at Anthropic, where I believe I can gain new perspectives and do research alongside people deeply engaged with the topics I’m most interested in,” Schulman said in a post on X.   

Despite acknowledging the company’s focus on alignment research, Schulman stated that his decision was personal, driven by a desire to explore new opportunities. 

His departure follows that of another key figure, Jan Leike, who also left OpenAI for Anthropic over issues about the company’s prioritisation of safety.

OpenAI has faced increasing accusations over its approach to AI safety, with reports stating that the company has been more focused on commercial success than on mitigating potential risks. The departure of Schulman, a leading expert in the field, is likely to increase these perspectives.

In addition to Schulman’s departure, OpenAI’s president and co-founder Greg Brockman has announced an extended leave of absence. Brockman, who has been key in the company’s growth, will be taking a break to “relax and recharge.”

The company has also confirmed the departure of Peter Deng, a product manager who joined from Meta.

This unexpected move by Elon Musk follows his public opposition to the new collaboration between OpenAI and Apple, indicating a well-thought-out strategy in his approach to the AI industry.

Filed in February, Musk’s lawsuit accused OpenAI of breach of contract and fiduciary duty, alleging that the company had strayed from its original mission of developing artificial general intelligence (AGI) for the benefit of humanity. 

Elon Musk argued that OpenAI had instead transformed into a for-profit entity dominated by Microsoft, its principal shareholder. Legal experts, however, viewed Musk’s case as tenuous, noting that the alleged “Founding Agreement” was not a formal contract but rather a collection of understandings communicated through emails.

Musk’s decision to drop the suit, which was dismissed without prejudice, allows him the option to refile it in the future. 

This development coincides with his recent statements threatening to ban Apple devices from his companies if Apple integrates OpenAI’s technology at the operating system level.

The backdrop to this legal drama is Musk’s own AI venture, xAI, which he founded last year as a direct competitor to OpenAI. xAI recently secured a $6 billion Series B funding round, attracting investment from major firms like Andreessen Horowitz, Sequoia Capital, and Fidelity Management & Research Company. 

The company aims to “understand the true nature of the universe,” according to its mission statement, and has already launched Grok, a chatbot inspired by “The Hitchhiker’s Guide to the Galaxy.”

After a “deliberative review process by the board,” it was concluded that Sam Altman’s communications lacked consistency, leading to a loss of confidence in his leadership abilities. Altman has since departed from the company, expressing his gratitude for his time at OpenAI and hinting at future plans.

In solidarity with Altman, Co-founder Greg Brockman resigned, joining Altman in a move to Microsoft to spearhead a new advanced AI research team.

Responding to the leadership vacuum, former Twitch Chief Executive and Co-founder Emmett Shear steps in as the interim Chief Executive of OpenAI. Shear acknowledged the rocky transition, promising to conduct a full review of the circumstances surrounding Altman’s removal and implement changes to regain trust within the organisation.

Microsoft, a key investor in OpenAI, swiftly recruited Altman, Brockman, and other top talent, securing their expertise to bolster its own AI initiatives. Satya Nadella, Microsoft’s CEO, expressed confidence in the company’s continued partnership with OpenAI while reinforcing the commitment to supporting their joint endeavors.

The abrupt leadership changes at OpenAI have sent shockwaves through the tech industry, with concerns raised about the company’s ability to maintain its pace of innovation without Altman’s leadership.

Several OpenAI employees expressed solidarity with Altman and disapproval of the board’s decisions, emphasizing the importance of the company’s talented workforce.

Shear promises to address concerns, conduct a thorough review, and restructure the leadership team to ensure OpenAI’s stability and future success.

The departure of key figures from OpenAI and their subsequent move to Microsoft has raised questions about the startup’s future direction and competitive edge in the dynamic sector of artificial intelligence. As the dust settles, the industry eagerly awaits the next chapter in the tale of these pioneering AI innovators.