A nine-person jury is now deliberating one of tech's most consequential lawsuits, one that could determine whether OpenAI's CEO Sam Altman violated the nonprofit principles that Elon Musk helped establish in 2015. The trial, which concluded closing arguments on Thursday in federal court in Oakland, California, centers on whether Altman and OpenAI president Greg Brockman secretly transformed the company from an altruistic AI research organization into a profit-driven venture worth $852 billion, allegedly betraying Musk's original $38 million investment.

What Is Musk Actually Asking the Court to Do?

Musk's lawsuit, filed in August 2024, seeks several remedies that could fundamentally reshape OpenAI's leadership and structure. While Musk initially sought over $100 billion in damages, pre-trial rulings narrowed his claims significantly. Today, he is pursuing an unspecified amount of money to be paid to OpenAI's charitable foundation, with funds coming primarily from the company's for-profit operations and Microsoft, which became OpenAI's largest investor after Musk stopped funding the company.

Beyond financial damages, Musk has asked the court to consider removing Altman and Brockman from their roles at OpenAI and to unwind the company's 2025 recapitalization, a move that would essentially reset the company's recent corporate restructuring. His legal team has also argued that any "ill-gotten gains" should be returned to OpenAI's foundation rather than enriching executives and investors.

How Does the Jury's Role Differ From the Judge's Final Decision?

The jury's verdict will be advisory, meaning Judge Yvonne Gonzalez Rogers will make the final determination on liability. This unusual structure reflects the judge's experience overseeing high-profile technology cases, including the antitrust battle between Epic Games and Apple. According to legal experts, judges typically empanel advisory juries in highly visible cases either to gauge community sentiment or to provide political cover for controversial decisions.

The jury, composed of six women and three men, will begin deliberations on Monday. Importantly, the jury will not participate in the remedies phase, which begins simultaneously. In that phase, Judge Gonzalez Rogers will hear arguments about potential damages and next steps if OpenAI, Altman, and Brockman are found liable. There will only be a decision in the remedies phase if there is a finding of liability.

What Are the Core Arguments Each Side Presented?

During closing arguments on Thursday, Musk's attorney Steven Molo reiterated that OpenAI failed to open source its technology, prioritize AI safety, and follow nonprofit customs and practices. Molo claimed that OpenAI insiders and investors, including Altman, Brockman, and Microsoft, enriched themselves at Musk's expense.

OpenAI's legal team pushed back forcefully. Attorneys Sarah Eddy and William Savitt argued that Altman and Brockman never made explicit commitments to Musk about OpenAI's corporate structure, and that Musk's donations were spent and used properly. They also highlighted a strategic point: Musk filed the lawsuit only after launching his competing AI startup, xAI, in 2023.

"He never cared about the nonprofit structure. What he cared about was winning," stated Sarah Eddy, attorney for OpenAI.

Sarah Eddy, Attorney for OpenAI

Microsoft, also named as a defendant, presented its own closing arguments through attorney Russell Cohen. Musk accused Microsoft of aiding and abetting OpenAI's alleged breach of charitable trust. Cohen countered that Microsoft had no knowledge of the events in question and could not have participated in them.

Steps to Understanding the Trial's Broader Implications

• Corporate Structure Dispute: The trial hinges on whether OpenAI's transformation from a nonprofit research organization to a for-profit entity with a nonprofit parent violated implicit agreements made when Musk co-founded the company in 2015.
• Financial Accountability: The case examines whether executives and investors improperly benefited from Musk's early funding and whether those gains should be returned to the charitable foundation rather than remaining with the company.
• Industry Leadership Stakes: The outcome could influence how other AI companies structure their governance and whether founders can later challenge corporate pivots that shift from nonprofit to commercial models.

Why Does This Trial Matter Beyond the Courtroom?

The trial outcome carries implications far beyond the immediate legal dispute. The verdict could influence the balance of power in artificial intelligence development, a technology increasingly viewed as both revolutionary and potentially dangerous. The case also provides rare public insight into the early days of the AI race, including the relationship between two of technology's most influential and polarizing figures.

For Musk, the timing is particularly sensitive. Last month, a jury held him liable for defrauding investors during his $44 billion acquisition of Twitter in 2022. Any damaging details about Musk's business tactics could harm his credibility as SpaceX prepares for an initial public offering this summer, a move that could make him the world's first trillionaire.

The trial also reveals the unraveling of a once-close partnership. In a February 2023 email exchange that surfaced as evidence, Altman told Musk, "I am tremendously thankful for everything you've done to help. I don't think OpenAI would have happened without you, and it really hurts when you publicly attack OpenAI." Musk responded, "I hear you and it is certainly not my intention to be hurtful, for which I apologize, but the fate of civilization is at stake".

Altman

Judge Gonzalez Rogers has demonstrated both firmness and fairness throughout the proceedings. She has shown little patience for procedural missteps, warning lawyers that "you do not want to be held in contempt, I guarantee you." Yet with jurors, she has been warm and friendly, even bringing them chocolates on one occasion and ensuring lunch is provided during deliberations.

As the jury begins its work on Monday, the trial promises to deliver riveting testimony from two of technology's most influential figures. The 54-year-old Musk and the 41-year-old Altman will present contrasting narratives about OpenAI's founding mission, the company's evolution, and whether that evolution constituted a betrayal of trust. Whatever the jury decides, Judge Gonzalez Rogers will have the final say on liability, making this one of the most closely watched technology cases in recent memory.