The first phase of the Musk v. Altman trial concluded on Thursday in federal court in Oakland, California, with closing arguments presented by attorneys for Elon Musk and OpenAI. The nine-person jury, composed of six women and three men, will begin deliberations on Monday. The jury’s verdict is advisory, meaning U.S. District Judge Yvonne Gonzalez Rogers will make the final decision on liability.
Musk’s Allegations
Musk, who co-founded OpenAI in 2015, sued the company, its CEO Sam Altman, and President Greg Brockman in 2024. He alleges they breached their commitment to keep OpenAI a nonprofit and unjustly enriched themselves. Musk claims the $38 million he donated was used for unauthorized commercial purposes. His lawyer, Steven Molo, argued that OpenAI failed to open-source its technology, prioritize AI safety, and adhere to nonprofit customs. Molo also accused OpenAI insiders and investors, including Microsoft, of enriching themselves at Musk’s expense.
OpenAI’s Defense
OpenAI’s attorneys, Sarah Eddy and William Savitt, countered that Altman and Brockman never made commitments to Musk about the company’s structure. They argued Musk’s donations were used properly and that his lawsuit was filed only after launching his competing AI startup, xAI. Microsoft, also named as a defendant, presented its closing arguments through attorney Russell Cohen.
Key Developments
Musk’s absence from the courtroom during closing arguments drew attention. His lawyer apologized on his behalf, noting Musk was in China for a state visit. Altman, however, was present for the proceedings. Musk is seeking $150 billion in damages, which would be paid to OpenAI’s nonprofit, and the removal of Altman and Brockman from their roles. Microsoft has invested over $100 billion in OpenAI, according to testimony.
Broader Implications
The trial’s outcome could shape the future of OpenAI, which is preparing for a potential $1 trillion IPO. Musk’s xAI, now part of SpaceX, is also preparing for an IPO. The case highlights tensions over AI development, nonprofit vs. for-profit models, and corporate governance in the tech industry.