OpenAI Betrayed Its Founding Mission, Musk’s Lawyers Argue As Landmark AI Trial Nears Verdict

OAKLAND, Calif. — Lawyers for Elon Musk and OpenAI began delivering their closing arguments on Thursday in a landmark trial that could reshape the future of artificial intelligence. The case pits Musk, the world’s richest man and an original co-founder of OpenAI, against the company’s current CEO, Sam Altman. Musk filed the lawsuit in 2024, accusing Altman and OpenAI president Greg Brockman of breaching the startup’s founding charitable mission by shifting into a for-profit mode that prioritizes commercial gain over humanity. Musk has invested approximately $38 million in OpenAI during its early years.

As the trial shifted to its final phase, Musk’s lead attorney, Steven Molo, addressed the nine-person jury on Thursday morning. Molo focused heavily on Altman’s credibility, noting that five witnesses, including Musk and former OpenAI board members, testified that Altman was a liar. He pointed out that when Altman was asked during cross-examination if he was completely trustworthy, he did not answer with an unequivocal yes.

“Sam Altman’s credibility is directly at issue in this case,” Molo told the jury. “If you don’t believe him, they cannot win.”

Molo further argued that Musk remained committed to ensuring his money would benefit a nonprofit endeavor. “Elon wanted OpenAI to remain essentially a philanthropic endeavor. He did not want to shut down the nonprofit,” Molo said. He accused the OpenAI defendants of breaching the charitable trust Musk helped create by enriching investors and insiders at the nonprofit’s expense.

Musk, who spent three days on the witness stand earlier in the trial, was not present for the closing arguments. Musk’s attorney informed jurors that the Tesla CEO is “sorry he could not be here” as he is currently in China with President Donald Trump. During his own testimony, Musk had delivered a simple message at the heart of his case: “It is not OK to steal a charity.” He also warned that AI could become “smarter than any human” as soon as next year.

OpenAI’s legal team has countered by arguing that Musk had repeatedly told his co-founders that the startup needed more funding and had himself suggested a for-profit structure. Altman spent part of the previous Tuesday on the stand rejecting Musk’s claims. Altman framed Musk as a competitor obsessed with control, testifying that Musk had even petitioned to have a majority stake in the company early on. “It does not fit with my conception of the words ‘stealing a charity’ to look at what has actually happened here,” Altman told the court.

One key decision the jury must make is whether Musk filed his lawsuit within the statute of limitations. OpenAI has argued that Musk waited too long and cannot claim harms that allegedly occurred before August 2021. The judge overseeing the case, Yvonne Gonzalez Rogers, wrote last month that if the jury finds Musk failed to file within the time limit, it is “highly likely” she will accept that finding and direct a verdict to the defendants.

If the jury decides the lawsuit was filed in time, they must determine whether OpenAI had a “charitable trust” and whether OpenAI, Altman, and Brockman broke that trust. Jurors also must decide if the defendants unjustly enriched themselves at Musk’s expense. For Microsoft, which is a co-defendant, the jury must decide whether the company aided and abetted that breach. Microsoft has spent more than $100 billion on its partnership with OpenAI.

The outcome carries enormous stakes for the AI industry. Musk is seeking more than $150 billion in damages from OpenAI and Microsoft, with any damages to be shared with the OpenAI nonprofit. He is also asking the court to remove Sam Altman from the startup’s board and to stop the company from operating as a for-profit entity. If Musk loses, Altman would likely solidify control of OpenAI, which is currently valued at approximately $730 billion. If Musk wins, the ruling could completely shake up the dynamics of the AI race.

The nine-person jury will now begin deliberations following the closing arguments. If there is no verdict before Monday, the judge and lawyers will return to court that day to discuss how OpenAI should be restructured and what damages should be paid if Musk wins. Judge Gonzalez Rogers will determine the final remedies and will award none if Musk loses.