In May 2023, OpenAI CEO Sam Altman was sworn in and testifying before Congress about the regulation of artificial intelligence. Senator John Kennedy of Louisiana heard his ideas about licensing advanced models and asked if Altman might be qualified to run a hypothetical AI regulatory agency.
“I love my current job,” Altman said, to titters.
“You make a lot of money, do you?” Kennedy asked him.
“No, I’m paid enough for health insurance, I have no equity in OpenAI,” Altman assured him.
“You need a lawyer,” Kennedy replied.
Now Altman has many lawyers, who watched as their client suffered a withering interrogation, sworn in to a California federal court on Tuesday. They were investigating much the same matter as Kenndy—is Altman qualified to to control 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?” barked Steve Molo, the combative attorney leading Elon Musk’s effort to shut down OpenAI’s for-profit business.
Altman had admitted that he did have economic exposure to OpenAI through his LP 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,” Almtan said.”You thought Senator Kennedy was a very sophisticated investor when he asked you that question?” Molo replied.
Altman’s decision to volunteer that he had no equity when he could have simply side-stepped the question was interesting one. It’s technically true, but Altman—who emphasized his expertise in investing in early-stage startups—surely understood his economic exposure to OpenAI through Y Combinator, and through investments in other AI companies that worked with OpenAI.
Altman’s credibility was on trial yesterday, at least in the eyes of the plaintiffs. OpenAI’s attorney’s m …