The federal court in Oakland, California, concluded the first phase of the OpenAI trial. A nine-member jury will begin closed-door deliberations next week, but the final determination of liability will be made by the judge.
The first phase of the trial between Elon Musk and Sam Altman over control of OpenAI and its nonprofit status concluded on Thursday at the federal court in Oakland, California, and the case has officially entered the jury deliberation phase.
A nine-member jury, composed of six women and three men, will begin closed-door deliberations next Monday. However, their verdict will be “advisory” only; the final determination of liability will be made by presiding judge Yvonne Gonzalez Rogers.
In 2024, Musk sued OpenAI, CEO Altman, and President Greg Brockman, accusing them of breaching their commitment to maintain OpenAI’s nonprofit status and using approximately $38 million in donated funds for unauthorized commercial purposes.
In his closing argument, Musk’s lawyer, Steven Molo, stated that OpenAI failed to fulfill its commitments to promote open-source AI, prioritize AI safety, and adhere to nonprofit governance principles. He also asserted that individuals including Altman, Brockman, and Microsoft (MSFT.O) have enriched themselves at Musk’s expense.
OpenAI attorneys Sarah Eddy and William Savitt countered that Altman and Brockman never promised Musk that OpenAI would maintain a specific corporate structure in the future, and that the use of funds complied with procedures.
They also noted that Musk filed the lawsuit only after founding his competing AI company, xAI. “He never cared about nonprofit structures,” Eddy told the jury. “He cares about winning.”
Microsoft is also one of the defendants. Musk alleges that Microsoft, as OpenAI’s largest investor, assisted it in breaching its charitable trust obligations. Microsoft’s lawyer, Russell Cohen, stated that Microsoft was unaware of the alleged conduct and therefore did not participate in any violation.
As the jury begins deliberations, the second phase of this case—the remedies phase—will also commence.
If the court ultimately determines that OpenAI, Altman, or Brockman are liable, Judge Rogers will decide on remedies and compensation arrangements; the jury will not be involved in this stage.
Elon Musk's side previously made several demands, including the removal of Altman and Brockman from their management roles at OpenAI and the reversal of OpenAI's 2025 capital restructuring.
In January this year, Musk’s legal team stated that their client was entitled to seek up to $134 billion in ill-gotten gains from OpenAI and Microsoft. Now, Musk’s team further argues that all illicit profits should be returned to the OpenAI Foundation.
During the trial, both sides also fiercely contested who was more credible.
Musk’s lawyer Molot stated, “Five witnesses under oath in this case called Altman a fraud.” He used this to question Altman’s integrity and emphasized that OpenAI’s transition from a nonprofit to a for-profit entity was deceptive.
OpenAI’s lawyer Savitt responded that Musk had long known that OpenAI would eventually adopt a profit model, but his attitude changed only after he realized he could no longer control the company.
"After Musk left, the people who stayed at OpenAI created tremendous value," Savet said. "It turned out that OpenAI did not collapse as he predicted. Today, the only thing Musk can do in the AI field is go to court."
The trial also revealed numerous internal details about OpenAI.
Brockman's private journal was made public for the first time, with one entry stating: "From a financial perspective, what could make me a billionaire?"
The court proceedings also revealed that Altman and Brockman personally hold shares in several companies that have business relationships with OpenAI. Musk’s lawyer particularly emphasized the vast wealth accumulated by OpenAI executives, such as Brockman’s OpenAI shares, which are currently valued at nearly $30 billion.
Other witnesses included Microsoft CEO Satya Nadella, former OpenAI CTO Mira Murati, co-founder Ilya Sutskever, and Shivon Zilis, who previously served as an OpenAI director and is the mother of Elon Musk’s four children.
Zilis stated in court that she had lost trust in OpenAI’s founding team due to Altman and Brockman’s personal investment activities, as some of the companies they held stakes in had business relationships with OpenAI.