Musk vs. Altman Trial Opens in Oakland as Jury Hears Competing Accounts of OpenAI's Founding Mission
The trial between Elon Musk and OpenAI, Sam Altman, Greg Brockman, and Microsoft took place at a federal courthouse in Oakland, California. A nine-member jury was present, and opening arguments were presented. Judge Yvonne Gonzalez Rogers is overseeing the case. The trial is expected to last four weeks, with daily sessions from 8:30 AM to 1:40 PM PT.
Initially, Musk filed 26 claims in 2024, but only two remain: breach of charitable trust and unjust enrichment. The trial is divided into two phases. The jury will provide an advisory opinion on liability, while the judge will make the final ruling. If the defendants are found liable, the judge will determine the appropriate remedies alone.
Musk’s Claims Against OpenAI
Musk's lead attorney, Steven Molo, told the jury that Musk's approximately $38 million in donations to OpenAI created a charitable trust meant to keep the organization a nonprofit forever. He argued that Altman and Brockman used those funds for commercial purposes without permission when OpenAI established its for-profit arm in March 2019.
Musk is seeking damages, estimated by his expert at up to $134 billion, representing wrongful gains. The total liability for OpenAI and Microsoft could exceed $150 billion. Musk has requested that any damages be returned to OpenAI's nonprofit side, that Altman and Brockman be removed from their roles, and that the company's October recapitalization be reversed.
OpenAI’s Defense in the Musk Trial
OpenAI's attorney William Savitt stated that all parties, including Musk, agreed in 2017 that a for-profit structure was the logical next step for the company's mission.
However, his push for unilateral control as CEO was rejected. OpenAI has called the lawsuit a baseless harassment campaign driven by Musk's competitive interests, especially since he founded his own AI company, xAI, in 2023.
Evidence and Key Witnesses in the Case
Internal documents entered as evidence ahead of the trial include a 2017 email from Sutskever and Brockman to Musk. In the email, they state that the current structure gives Musk a pathway to ultimately have complete control over the AGI and mention that OpenAI's goal was to avoid an AGI dictatorship.
Musk had previously written to OpenAI leadership before stepping away, saying he would no longer fund the organization unless they made a firm commitment to stay independent, or he would be essentially providing free funding to help them create a startup.
Scheduled witnesses include Altman, Brockman, Microsoft CEO Satya Nadella, former OpenAI scientists Mira Murati and Ilya Sutskever, and Shivon Zilis. Both Musk and Altman are expected to testify for more than two hours.
Reuters reports that the outcome of the case may depend on pages from Brockman's personal diary, which includes a 2017 entry stating that getting out from under Elon was "the only chance we have."
What the Musk vs. OpenAI Verdict Could Mean
If Musk wins, Altman and Brockman could be removed from their positions, the company's restructuring for profit could be reversed, and damages might be directed toward the charitable mission.
A loss would support maintaining OpenAI's current structure, keeping the company on track for a potential public offering in late 2026. Recently, OpenAI closed a funding round worth $122 billion at an $852 billion valuation.
I don’t trust Sam Altman in anything he has said. He basically is a smooth salesman promising stuff to get funding. This whole AI has yet to give even hint of profitability let alone being a successful non profit. But all these AI entities are looking for their sugar daddy’s to fund all their expansion.