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Elon Musk's OpenAI Lawsuit Heads to Jury After Closing Arguments

BusinessTechnology5/14/2026
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A newer version of this story is available at Elon Musk and OpenAI Conclude Closing Arguments in High-Stakes Trial.

Attorneys for Elon Musk concluded their closing arguments in a high-stakes civil trial against OpenAI, CEO Sam Altman, and Microsoft. Musk alleges OpenAI abandoned its nonprofit mission to benefit humanity in favor of personal enrichment, seeking billions in damages and the removal of Altman and President Greg Brockman. An advisory jury's verdict is possible next week, with a separate damages phase to follow if OpenAI is found liable.

Facts First

  • Elon Musk seeks up to $150 billion in damages and the removal of OpenAI's leadership, alleging a breach of charitable trust.
  • The lawsuit claims OpenAI executives pursued personal gain through stock grants and self-dealing, violating the nonprofit mission.
  • Sam Altman testified that a for-profit structure was necessary to fund safe AI development and that Musk sought control of the company.
  • The trial featured testimony from key figures including Musk, Altman, Microsoft CEO Satya Nadella, and former OpenAI board members.
  • The jury's verdict is advisory, with the final ruling and any damages to be determined by Judge Yvonne Gonzalez Rogers.

What Happened

Closing arguments concluded on Thursday in Elon Musk's civil lawsuit against OpenAI, its CEO Sam Altman, President Greg Brockman, and Microsoft. Musk's attorney argued that OpenAI violated its nonprofit mission to pursue safe, powerful AI for the world, instead enriching executives through stock grants and self-dealing. The trial, which began last month in Oakland federal court, included testimony from Musk, Altman, Microsoft CEO Satya Nadella, and former OpenAI employees and board members. Musk is seeking up to $150 billion in disgorgement to the nonprofit, the unwinding of the for-profit entity, and the removal of Altman and Brockman.

Why this Matters to You

The outcome of this case could significantly reshape the leadership and financial structure of OpenAI, a leading developer of widely used AI tools like ChatGPT. A ruling against OpenAI may force a restructuring that could affect the company's research direction, funding sources, and the profit models for future technologies. For you, this means the pace and commercial focus of new AI developments you use may be influenced by the court's decision on balancing nonprofit ideals with the capital demands of cutting-edge research.

What's Next

An advisory jury could deliver a verdict as soon as next week, though Judge Yvonne Gonzalez Rogers has the authority to overrule it. If the ruling is against OpenAI and/or Microsoft, a separate trial phase will be held to determine damages. The judge's final decision will address whether OpenAI breached its charitable mission and could mandate major changes to its governance and financial model.

Perspectives

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Musk's Legal Team argue that OpenAI executives betrayed the organization's founding non-profit mission by prioritizing personal enrichment and self-dealing through a for-profit subsidiary. They contend that the original charitable purpose has been sidelined to benefit Microsoft and OpenAI leadership at the expense of the initial donors.
“
OpenAI Leadership maintain that the organization's core mission remains intact despite structural changes and assert that the legal challenges are driven by Musk's personal vendettas. They argue that Musk's motivations are rooted in 'jealousy', 'sour grapes', and an attempt to damage a competitor after he was deemed unfit for leadership.
“
Industry Observers note that the trial highlights a fundamental struggle over whether AI safety can be prioritized over money and control, suggesting that neither side provides a 'clean or reassuring story' regarding governance. They observe that the outcome could radically reshape OpenAI and the broader AI landscape.