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Musk v. OpenAI Trial Concludes Arguments, Jury to Deliberate on Landmark AI Case

Closing arguments have concluded in the high-profile legal battle between Elon Musk and artificial intelligence firm OpenAI, along with its CEO Sam Altman and President Greg Brockman. A nine-person jury is set to begin deliberations next week in federal court in Oakland, California. The jury’s verdict will serve an advisory role, with Judge Yvonne Gonzalez Rogers ultimately making the final determination on liability. Concurrently, the second phase of the trial, focusing on potential remedies, is also scheduled to commence.

Elon Musk, a co-founder of OpenAI in 2015, initiated the lawsuit in 2024, alleging that the company deviated from its foundational commitment to operate as a nonprofit entity. He claims that his roughly $38 million in donations were diverted for unauthorized commercial purposes, accusing OpenAI, Altman, Brockman, and investor Microsoft of unjust enrichment. Musk’s legal team reiterated arguments that OpenAI failed to uphold its promise to open-source its technology, prioritize AI safety, and adhere to nonprofit operational standards. They contended that OpenAI insiders and investors, including Altman, Brockman, and Microsoft, benefited financially at Musk’s expense.

Attorneys representing OpenAI countered these claims, asserting that Altman and Brockman never made specific commitments to Musk regarding the company’s corporate structure and that all donations were utilized appropriately. They also highlighted that Musk filed his lawsuit only after launching his own competing AI venture, xAI, suggesting his motivations were more about competitive advantage than the company’s nonprofit status. Microsoft, also named as a defendant, presented its own closing arguments, stating it had no knowledge of any alleged breach of charitable trust and therefore could not have participated in such actions.

Should a finding of liability occur, Judge Gonzalez Rogers will preside over the remedies phase, where arguments concerning potential damages and subsequent actions will be heard. Musk has sought various outcomes, including the removal of Altman and Brockman from their leadership roles at OpenAI, the unwinding of the company’s 2025 recapitalization, and the return of any alleged “ill-gotten gains” to OpenAI’s foundational structure. Judge Gonzalez Rogers, known for her oversight of significant technology cases like the Epic Games v. Apple antitrust dispute, has maintained a firm stance with counsel throughout the proceedings while ensuring the jury’s comfort during the complex trial.

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