Speaking in recorded testimony played Wednesday in a federal court in Oakland, California, Murati described an internal culture marked by conflicting messages and leadership instability as OpenAI accelerated the development and rollout of advanced AI systems.
“My concern was about Sam saying one thing to one person and completely the opposite to another person,” Murati testified.
She added that Altman was “creating chaos” and at times acted deceptively toward both her and other executives.
Musk’s Lawsuit Puts OpenAI’s Future Under Scrutiny
The courtroom battle stems from a lawsuit filed by Elon Musk in 2024, accusing OpenAI of abandoning its original nonprofit mission in favour of commercial expansion.
Musk, who co-founded OpenAI before later distancing himself from the organization, argues that the company improperly transformed into a profit-driven entity while benefiting from technology initially developed under a charitable framework.
The billionaire entrepreneur is reportedly seeking as much as $150 billion in damages from OpenAI and its major investor, Microsoft, with the funds intended for OpenAI’s nonprofit arm.
Legal analysts say the outcome of the trial could reshape the governance structure of one of the world’s most influential AI companies and potentially affect the wider direction of artificial intelligence development globally.
Murati Describes Leadership Breakdown
Murati, who briefly served as interim CEO during Altman’s dramatic temporary removal in 2023, painted a picture of severe internal dysfunction during one of the most critical periods in the company’s history.
According to her testimony, Altman often positioned executives against each other and weakened her authority as technology chief.
Still, despite those concerns, Murati said she ultimately supported Altman remaining in charge because she feared OpenAI itself could collapse amid the leadership crisis.
“OpenAI was at catastrophic risk of falling apart,” she said. “I was concerned about the company completely blowing up.”
Murati has since left OpenAI and launched her own AI startup.
ChatGPT Launch Also Sparked Internal Alarm
The trial also shed light on concerns surrounding the release of ChatGPT, the product that transformed OpenAI into a global AI powerhouse.
Former OpenAI board member Shivon Zilis testified that some board members were deeply uneasy about how quickly ChatGPT was launched.
She said the board had “voiced extreme concern” about releasing the chatbot “without any semblance of board communication.”
When asked whether she had raised concerns internally about Altman’s leadership, Zilis acknowledged that “there had been a couple of instances.”
Zilis currently works at Neuralink, another Musk-linked company, and is also the mother of four of Musk’s children.
Power Struggles and Growth Pressures
Testimony throughout the trial has highlighted long-running disagreements among OpenAI’s founders and executives over leadership, funding, and the company’s rapid commercial growth.
Witnesses including Musk and OpenAI president Greg Brockman have described disputes over whether Musk himself should have become CEO during OpenAI’s formative years.
The proceedings have also revealed previously unknown details about strained personal relationships among top executives.
One revelation showed that Musk attempted to settle privately with Brockman shortly before the trial began. Testimony also suggested Musk at one point regretted continuing to finance the company in its early years, reportedly feeling “like a fool” for doing so.
Why the Case Matters Beyond Silicon Valley
The trial is being closely watched because OpenAI now sits at the heart of the global AI industry, with its technology increasingly integrated into schools, corporations, governments, and digital platforms worldwide.
A ruling in Musk’s favor could complicate OpenAI’s commercial expansion and potentially benefit Musk’s own AI venture, xAI, which has been integrated into SpaceX operations.
More broadly, the case raises major questions about accountability, governance, and control in the rapidly evolving artificial intelligence sector—particularly as AI systems become more powerful and commercially valuable.
For now, the testimony from former insiders continues to expose a company grappling not only with technological breakthroughs, but also with deep internal fractures behind the scenes.