Musk-OpenAI Showdown Heads to Jury

California — A jury is set to begin deliberations on Monday in the high-stakes lawsuit brought by billionaire entrepreneur Elon Musk against and its chief executive Sam Altman, in a case that could reshape the governance and financial future of one of the world’s most influential artificial intelligence companies.

The three-week trial in federal court in Oakland focused on allegations by Musk that OpenAI abandoned its founding nonprofit mission in pursuit of commercial expansion and investor profits after launching the chatbot ChatGPT in 2022.

Musk, a co-founder of OpenAI who left the organization in 2018, argued that Altman and co-founder Greg Brockman improperly redirected a company originally established to develop artificial intelligence for the public good into a private enterprise valued at an estimated $850 billion.

The lawsuit centers on approximately $38 million in donations Musk said he contributed to sustain OpenAI as a nonprofit research laboratory. His legal team argued during closing statements that the company violated commitments made during its formation by pursuing a for-profit structure and deep commercial partnerships.

“A non-profit devoted to the safe development of artificial intelligence, open sourced as practical, for the benefit of humanity,” Musk attorney Steven Molo told jurors in closing arguments, questioning the credibility of OpenAI leadership.

OpenAI attorney Sarah Eddy rejected those claims and challenged Musk’s account of events, arguing that witness testimony and internal communications contradicted key elements of his case.

Jurors are first expected to determine whether Musk filed the lawsuit within the applicable legal time limit after his final contribution to OpenAI in 2020. Judge Yvonne Gonzalez Rogers said the jury’s finding on that issue would be advisory but indicated she was likely to follow its recommendation.

If the case proceeds beyond the statute-of-limitations question, jurors and the court will consider whether OpenAI executives misused Musk’s contributions and breached promises tied to the organization’s nonprofit status.

Musk is seeking an order requiring OpenAI to return to a nonprofit structure, a move that could disrupt the company’s planned public offering and complicate relationships with major investors including microsoft, amazon and softbank, which have collectively committed billions of dollars to the company.

The jury will also examine whether Microsoft, OpenAI’s largest outside backer with roughly $13 billion committed, knowingly supported the company’s transition away from its original nonprofit framework.
The proceedings also revisited Altman’s brief ouster from OpenAI in November 2023, when board members removed him over concerns related to transparency and management practices before reinstating him days later following pressure from employees and investors.

Musk has since expanded his own artificial intelligence ambitions through x.ai⁠ while continuing AI development efforts linked to spacex.