The three-week trial in federal court in Oakland focused on allegations by Musk that OpenAI abandoned its founding nonprofit mission in pursuit of commercial expansion and investor profits after launching the chatbot ChatGPT in 2022.

Musk, a co-founder of OpenAI who left the organization in 2018, argued that Altman and co-founder Greg Brockman improperly redirected a company originally established to develop artificial intelligence for the public good into a private enterprise valued at an estimated $850 billion.

The lawsuit centers on approximately $38 million in donations Musk said he contributed to sustain OpenAI as a nonprofit research laboratory. His legal team argued during closing statements that the company violated commitments made during its formation by pursuing a for-profit structure and deep commercial partnerships.

“A non-profit devoted to the safe development of artificial intelligence, open sourced as practical, for the benefit of humanity,” Musk attorney Steven Molo told jurors in closing arguments, questioning the credibility of OpenAI leadership.

OpenAI attorney Sarah Eddy rejected those claims and challenged Musk’s account of events, arguing that witness testimony and internal communications contradicted key elements of his case.

Jurors are first expected to determine whether Musk filed the lawsuit within the applicable legal time limit after his final contribution to OpenAI in 2020. Judge Yvonne Gonzalez Rogers said the jury’s finding on that issue would be advisory but indicated she was likely to follow its recommendation.

If the case proceeds beyond the statute-of-limitations question, jurors and the court will consider whether OpenAI executives misused Musk’s contributions and breached promises tied to the organization’s nonprofit status.

Musk is seeking an order requiring OpenAI to return to a nonprofit structure, a move that could disrupt the company’s planned public offering and complicate relationships with major investors including microsoft, amazon and softbank, which have collectively committed billions of dollars to the company.

The jury will also examine whether Microsoft, OpenAI’s largest outside backer with roughly $13 billion committed, knowingly supported the company’s transition away from its original nonprofit framework.
The proceedings also revisited Altman’s brief ouster from OpenAI in November 2023, when board members removed him over concerns related to transparency and management practices before reinstating him days later following pressure from employees and investors.

Musk has since expanded his own artificial intelligence ambitions through x.ai⁠ while continuing AI development efforts linked to spacex.

Musk, a co-founder of OpenAI, is suing the company, Chief Executive Sam Altman, President Greg Brockman and major investor Microsoft, alleging they abandoned OpenAI’s original mission of developing artificial intelligence for the benefit of humanity and instead turned it into a commercial enterprise focused on profit.

“If we make it okay to loot a charity, the entire foundation of charitable giving in America will be destroyed,” Musk told the court on the first day of trial. “That’s my concern.”Musk is seeking $150 billion in damages from OpenAI and Microsoft, with the proceeds directed to OpenAI’s charitable arm. He is also asking the court to require OpenAI to return to nonprofit control and to remove Altman and Brockman from leadership roles, while seeking Altman’s removal from the board.

The lawsuit includes claims of breach of charitable trust and unjust enrichment and could have significant implications for OpenAI’s governance as the company explores a potential initial public offering that Reuters has previously reported could value it near $1 trillion.

OpenAI lawyer Bill Savitt told jurors during opening arguments that Musk had originally supported the idea of turning OpenAI into a for-profit structure and only sued after failing to gain control of the company and later launching his own rival artificial intelligence venture, xAI.Savitt said Musk wanted “the keys to the kingdom” and pursued litigation only after OpenAI rejected his ambitions to lead the company.

“What he cares about is Elon Musk being on top,” Savitt said. “We are here because Mr Musk didn’t get his way.”OpenAI’s legal team argued that its decision in March 2019 to establish a for-profit entity was necessary to secure the computing resources and talent needed to compete with rivals such as Google’s DeepMind artificial intelligence division.

Musk’s lawyer Steven Molo rejected that argument, saying OpenAI’s leadership shifted focus once major investors, including Microsoft, entered the picture.“It wasn’t a vehicle for people to get rich,” Molo said.Before jurors entered the courtroom, U.S. District Judge Yvonne Gonzalez Rogers warned Musk over his social media activity after OpenAI lawyers raised concerns about his posts on X, where he referred to Altman as “Scam Altman” and accused him of stealing a charity.

Rogers said she was reluctant to impose a gag order but urged Musk to avoid using social media to influence matters outside the courtroom.Musk agreed to reduce his online commentary, as did Altman. Both are expected to testify, along with Microsoft Chief Executive Satya Nadella.

The trial is expected to provide a rare public examination of OpenAI’s evolution from a nonprofit founded in 2015 in Brockman’s apartment into one of the world’s most valuable artificial intelligence companies, currently estimated to be worth more than $850 billion.

Musk testified that his concerns about artificial intelligence safety were central to OpenAI’s founding and intensified after discussions with former U.S. President Barack Obama and with Larry Page, whom he said did not take the risks of advanced AI seriously enough.“We had to have a counterpoint against Google,” Musk said.

OpenAI disputed that characterization, with Savitt telling jurors that Musk had dismissed employees focused on AI safety and that such concerns were not his primary motivation.

Musk has said he contributed about $38 million to OpenAI before leaving its board, later objecting to its restructuring and Microsoft’s multibillion-dollar investment.

Microsoft lawyer Russell Cohen said the company had acted properly throughout its partnership with OpenAI and described it as “a responsible partner every step of the way.”