Musk v. Altman Trial Heads to Jury After Dramatic Closing Arguments
The first phase of the blockbuster Musk v. Altman trial concluded in federal court in Oakland, California, on Thursday, May 14, with attorneys for Elon Musk and OpenAI presenting closing arguments to a nine-person jury. The jury, composed of six women and three men, will begin deliberating on May 18. Their verdict will be advisory, meaning Judge Yvonne Gonzalez Rogers will make the final decision on liability.
Musk sued OpenAI, CEO Sam Altman, and president Greg Brockman in 2024, alleging they breached their commitment to keep the AI startup a nonprofit. He claims approximately $38 million in donations were used for unauthorized commercial purposes and that OpenAI insiders enriched themselves at his expense. During closing arguments, Musk's attorney Steven Molo argued that OpenAI failed to open source its technology and prioritize AI safety.
OpenAI's attorneys Sarah Eddy and William Savitt countered that Altman and Brockman never made commitments about corporate structure and that Musk filed the lawsuit only after launching his competing startup, xAI. Notably, Musk was absent from the courtroom during closings — he was traveling to Beijing with President Trump. Microsoft, also a defendant, said it had no knowledge of any breach. If found liable, the remedies phase will determine damages, with Musk seeking up to $134 billion and the removal of Altman and Brockman.
This trial's outcome could reshape how AI companies structure themselves and whether founder commitments to nonprofit missions are legally enforceable. An advisory jury verdict favorable to Musk could pressure OpenAI's $300B+ valuation.
What is Musk claiming in the OpenAI lawsuit?
Musk alleges that his $38 million in donations to OpenAI were misused when the company converted from a nonprofit to a for-profit entity, and that OpenAI insiders including Altman and Brockman enriched themselves at his expense.