UPSC Prelims Practice Questions — Decoding the Musk vs. Altman verdict

Q1. With reference to the evolution of OpenAI's corporate structure, consider the following statements. Which of the statements given above is/are correct?

  1. OpenAI was founded in 2015 as a nonprofit dedicated to building safe Artificial General Intelligence.
  2. In 2019 it created a capped-profit subsidiary able to accept outside investment.
  3. Microsoft currently owns a controlling 51% majority of OpenAI's for-profit arm.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q2. Among the following, which one holds the single largest ownership stake in OpenAI's for-profit arm?

  • A. Microsoft
  • B. Sam Altman
  • C. Greg Brockman
  • D. Elon Musk

Q3. With reference to the May 2026 verdict in the Musk v. Altman case, consider the following statements. Which of the statements given above is/are correct?

  1. The Oakland jury found Musk's claims to be barred by the statute of limitations.
  2. The case was decided on the substantive merits of whether OpenAI betrayed its founding mission.
  3. Musk had sought to unwind the 2025 restructuring that expanded OpenAI's for-profit arm.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q4. Approximately how much did Elon Musk reportedly seek from OpenAI as disgorgement in the lawsuit?

  • A. Up to about $180 billion
  • B. Up to about $18 billion
  • C. Up to about $1.8 billion
  • D. Up to about $180 million

Q5. With reference to the classification of artificial intelligence, consider the following statements. Which of the above is/are NOT correct?

  1. Artificial Narrow Intelligence (ANI) performs a single narrow function but cannot generalize to novel goals.
  2. Present-day systems such as ChatGPT are classified as Artificial General Intelligence (AGI).
  3. AGI can learn and perform almost any intellectual task a human can across domains.
  4. Artificial Superintelligence (ASI) is a hypothetical AI surpassing human intelligence across all domains.
  • A. 1 and 3
  • B. 2 only
  • C. 3 and 4
  • D. 4 only

Q6. Consider the following pairings of AI categories with their descriptions. Which of the above are correctly identified?

  1. ANI — performs a narrow function at or above human level.
  2. AGI — a hypothetical AI surpassing human intelligence in all domains.
  3. ASI — surpasses human intelligence in creativity and strategic thinking across all domains.
  4. AGI — can learn and perform almost any intellectual task a human can across domains.
  • A. 1 and 2
  • B. 1, 3 and 4
  • C. 2 and 4
  • D. 3 only

Q7. With reference to charitable trusts and trustees' fiduciary duty, consider the following statements. Which of the statements given above is/are correct?

  1. A charitable trust, unlike most trusts, does not require definite beneficiaries.
  2. A charitable trust may exist in perpetuity.
  3. A trustee's fiduciary duty permits acting partly for the trustee's own benefit alongside that of the beneficiary.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q8. In the United States, enforcement authority over charitable and nonprofit organizations (such as the action to dissolve the NRA for misuse of nonprofit assets) is primarily exercised by which one of the following?

  • A. State attorneys general
  • B. The Securities and Exchange Commission
  • C. The Federal Trade Commission
  • D. The Department of the Treasury

Q9. The IndiaAI Mission, with an outlay of over Rs 10,000 crore, is implemented under which one of the following?

  • A. The Ministry of Electronics and Information Technology (MeitY)
  • B. NITI Aayog
  • C. The Department of Science and Technology
  • D. The Ministry of Corporate Affairs

Q10. With reference to the risk categories under the EU Artificial Intelligence Act, consider the following statements. Which of the above is/are NOT correct?

  1. 'Unacceptable risk' is one of the Act's risk categories.
  2. 'High risk' is one of the Act's risk categories.
  3. 'Minimal risk' is one of the Act's risk categories.
  4. 'Systemic risk' is one of the Act's four principal risk categories.
  • A. 1 and 2
  • B. 4 only
  • C. 3 and 4
  • D. 2 only

Q11. With reference to the November 2023 OpenAI board episode, consider the following statements. Which of the statements given above is/are correct?

  1. OpenAI's board removed Sam Altman as CEO in November 2023.
  2. Following Altman's removal, Greg Brockman was appointed as the permanent CEO of OpenAI.
  3. Altman and Brockman were reinstated within days of the removal.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3