Zilis Testifies Musk Planned to Move OpenAI Staff to Tesla While Seeking $134 B in Damages

Context Elon Musk’s lawsuit against OpenAI entered its second week, accusing the AI startup’s leaders of breaching a founding agreement that required the company to remain a non‑profit. The case hinges on whether Musk’s departure in 2018 was a strategic exit or a retaliatory move after OpenAI’s shift to a for‑profit model. Shivon Zilis, a Neuralink executive and mother of Musk’s four children, became a pivotal witness because she sat on OpenAI’s board from 2020 to 2023 and maintained close ties to both parties.

Key Facts - In a 2018 text, Zilis asked Musk whether she should stay close to OpenAI to keep information flowing or distance herself. She wrote, “Do you prefer I stay close and friendly to OpenAI to keep info flowing or begin to disassociate?” - Musk replied, “Close and friendly, but we are going to actively try to move three or four people from OpenAI to Tesla. More than that will join over time, but we won’t actively recruit them.” - The lawsuit seeks $134 billion in damages, which Musk wants redirected to OpenAI’s non‑profit arm. - Zilis testified that she never “funnel[ed]” information to Musk and described her role as a facilitator of communication among the parties. - She confirmed a romantic relationship with Musk began around 2016 and that they share four children, living part‑time in Austin, Texas. - Zilis, a Yale graduate who began her career at IBM, joined Tesla as a project director in 2017 before moving to OpenAI’s board, where she was the youngest member.

What It Means Musk’s explicit plan to relocate OpenAI talent to Tesla strengthens his claim that he sought to undermine the AI firm’s competitive edge. The $134 billion demand, if upheld, would represent one of the largest corporate damage awards ever and could force a reversal of OpenAI’s for‑profit restructuring. Zilis’s testimony, which denies active espionage while confirming strategic staff moves, may shape the jury’s view of Musk’s intent—whether it was a legitimate business maneuver or a retaliatory strike.

The trial will likely focus next on financial records that could prove whether the alleged staff transfers resulted in measurable loss for OpenAI and on any evidence of Musk’s direct involvement in the for‑profit shift. Watch for the court’s ruling on the admissibility of internal communications that could clarify the extent of Musk’s influence over OpenAI’s governance.