Deliberations begin in trial between Elon Musk and OpenAI

The trial takes place in Oakland, on the outskirts of San Francisco, where the main magnates of Silicon Valley have taken the stand for three weeks.

Musk, the world’s richest person, sued OpenAI for allegedly moving away from its nonprofit company origins to become the $850 billion giant behind ChatGPT.

If successful, the lawsuit could deal a lethal blow to OpenAI, a company that contributed to the artificial intelligence revolution with the launch of ChatGPT in 2022 and is currently listed as one of the most valuable private companies in the world.

Musk claims Altman and OpenAI co-founder Greg Brockman misused $38 million donation which he hoped would serve to maintain the company as a research laboratory for the good of humanity.

Musk demands that OpenAI resume its non-profit structure, which would force the company to abandon its planned IPO and dissolve its ties with its main investors – Microsoft, Amazon and SoftBank – who have injected billions into the company in the framework of the global race for leadership in artificial intelligence.

For the nine-person jury, as Judge Yvonne Gonzalez Rogers noted, the decision can come down to a simple question: Which of the bickering tycoons should they believe?

“A nonprofit organization dedicated to the safe development of artificial intelligence… for the benefit of humanity. We’re supposed to believe that,” Musk’s lawyer, Steven Molo, joked in his closing argument Thursday, questioning Altman’s integrity.

OpenAI lawyer Sarah Eddy counterattacked by targeting Musk.

“Not even the mother of his children can support his version,” he said, referring to Shivon Zilis, Musk’s business partner with whom he has four children, who testified about her role as an intermediary between technology executives.

Musk abandoned OpenAI in 2018 and has since pushed AI projects through his aerospace company SpaceX, while his own AI startup, xAI, has struggled to gain traction against OpenAI and Anthropic, another prominent California AI company.

The final arguments of the trial focused, to a large extent, in Altman’s integrity and in the internal maneuvers that he carried out behind the scenes, which generated discomfort among his colleagues.

Unexpectedly removed in November 2023 by the OpenAI board due to a lack of candor, he was reinstated under pressure from employees. However, accusations of manipulation and fostering a toxic culture dogged him throughout the trial.

The jury must first determine whether Musk — who filed the lawsuit in 2024, four years after his last contribution — did so within the legal deadline. If not, the case will conclude at that point.

The judge ruled that the jury’s verdict on this aspect would be advisory, although she noted that she would most likely follow their recommendation.

Should the trial proceed, jurors — and ultimately the judge — will determine whether the OpenAI co-founders misappropriated the $38 million donated by Musk and whether they reneged on a promise and embarked on a business path to enrich themselves.

Additionally, the jury will evaluate whether Microsoft—the largest private backer of OpenAI, with a committed investment of $13 billion—consciously facilitated the abandonment of the nonprofit model.