OpenAI Trial Nears End as Jury Deliberates Musk’s $134B

A California jury is deliberating the future of OpenAI after a three-week trial that could force the AI company to abandon its for-profit structure and pay Elon Musk up to $134 billion in damages. The case centers on Musk’s claim that OpenAI CEO Sam Altman and president Greg Brockman deceived him into donating $38 million by promising to maintain the company as a nonprofit focused on developing AI for humanity’s benefit.

The Core Legal Claims

The nine-person jury must decide three narrow legal questions, according to TechCrunch. First, whether OpenAI breached a charitable trust by using Musk’s donations for purposes beyond their agreed charitable mission. Second, if the defendants unjustly enriched themselves through OpenAI’s for-profit arm using Musk’s charitable contributions. Third, whether Microsoft aided and abetted the alleged breach by knowingly participating despite understanding Musk’s donation conditions.

Musk co-founded OpenAI in 2015 alongside Altman and Brockman but departed in 2018. He now seeks to remove both executives from their roles and unwind OpenAI’s 2024 restructuring that converted its for-profit subsidiary into a public benefit corporation. The lawsuit also targets Microsoft, OpenAI’s primary investor, which secured access to OpenAI’s models through 2032 in a deal worth billions.

Key Testimony Reveals Internal Conflicts

Former OpenAI chief scientist Ilya Sutskever emerged as a star witness, revealing he owns approximately $7 billion worth of OpenAI’s for-profit arm — making him one of the company’s largest individual shareholders. According to Wired, Sutskever testified that he “felt a great deal of ownership of OpenAI” and “didn’t want it to be destroyed,” explaining his role in Altman’s brief 2023 ouster.

Brockman acknowledged owning around $30 billion in OpenAI shares during his testimony. He countered Musk’s narrative by claiming Musk himself pushed for a for-profit structure and fought for “absolute control” over it. Shivon Zilis, a former OpenAI board member and mother of four of Musk’s children, testified that Musk attempted to recruit Altman to lead a new AI lab at Tesla.

Microsoft CEO Satya Nadella also testified, though details of his testimony remain limited in available court reporting.

Altman Defends Against Conflict Claims

Altman took the stand Tuesday to address both the Musk lawsuit and separate conflict-of-interest allegations from Republican lawmakers. Forbes reported that Altman defended his investments in companies doing business with OpenAI, stating he has “always been recused” from potential conflicts.

The House Oversight Committee, led by Rep. James Comer (R-Ky.), sent Altman a letter Friday requesting information about potential conflicts. The inquiry focuses on Altman’s push for OpenAI to invest $500 million in nuclear fusion company Helion, where Altman has invested at least $375 million personally. Altman testified he recused himself from OpenAI-Helion discussions but acknowledged serving on Helion’s board while seeking more compute power for OpenAI.

State attorneys general from Florida, Montana, Nebraska, Iowa, West Virginia, and Louisiana have also written to the Securities and Exchange Commission regarding potential conflicts.

OpenAI’s Defense Strategy

OpenAI mounted three primary defenses against Musk’s claims. The company argues the statute of limitations has expired for claims dating before August 2021-2022, depending on the specific count. They contend Musk’s 2024 filing represents unreasonable delay that makes damage claims invalid.

Most significantly, OpenAI invoked the “unclean hands” doctrine, arguing Musk’s own conduct related to his claims was unconscionable. The company portrays the lawsuit as revenge for Musk’s failed attempt to gain control, noting he now competes directly through xAI, which became a SpaceX division in 2023.

MIT Technology Review reported that OpenAI characterizes Musk as suing because “he didn’t get his way and is now trying to undermine a competitor.”

Stakes and Timeline

The trial’s outcome could derail OpenAI’s planned IPO at a valuation approaching $1 trillion. If Musk prevails, OpenAI might be forced to return to its original nonprofit structure, fundamentally altering the AI landscape’s competitive dynamics.

Closing arguments concluded Thursday, May 14th, with an audio live stream available for public access. Following the jury’s verdict, additional hearings will determine specific remedies if Musk wins, though a negative verdict would render those proceedings moot.

The case represents the highest-profile legal challenge to the AI industry’s corporate structures and the tension between stated humanitarian missions and commercial success.

What This Means

This trial exposes the fundamental contradiction at the heart of leading AI companies: balancing world-changing technology development with investor returns. OpenAI’s evolution from nonprofit to hybrid structure mirrors broader industry tensions between altruistic AI safety goals and the massive capital requirements for frontier model development.

The case also highlights governance challenges in AI companies, where technical founders like Sutskever wielded significant influence over leadership decisions. His $7 billion stake revelation shows how early technical contributors became extraordinarily wealthy through OpenAI’s transformation — precisely the outcome Musk claims violates their original agreement.

Regardless of the verdict, the trial has already damaged relationships among OpenAI’s founding team and exposed internal conflicts that shaped the company’s trajectory. The public airing of these disputes provides unprecedented insight into how the world’s most valuable AI company operates behind closed doors.

FAQ

What exactly is Elon Musk suing OpenAI for?

Musk claims OpenAI violated a charitable trust by using his $38 million donation for profit-making activities instead of the agreed humanitarian AI development mission. He seeks up to $134 billion in damages and wants Altman and Brockman removed from leadership while forcing OpenAI back to nonprofit status.

How much are OpenAI’s founders worth from the company?

Greg Brockman owns approximately $30 billion in OpenAI shares, while Ilya Sutskever holds about $7 billion worth of the for-profit arm. These stakes make them among the wealthiest individuals in the AI industry, though Sam Altman notably does not hold direct OpenAI equity.

What happens if Musk wins the lawsuit?

A victory could force OpenAI to abandon its for-profit structure and return to its original nonprofit mission, potentially derailing its planned IPO. The court would hold separate hearings to determine specific remedies, which could fundamentally reshape how AI companies balance humanitarian goals with commercial success.