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Musk Accuses Altman of Fraud as OpenAI Trial Heads to Jury

Elon Musk claims Sam Altman defrauded him of millions as the OpenAI trial goes to jury. Both testified; BBC's Lily Jamali outlines the key takeaways.

Alex Mercer/3 min/GB

Senior Tech Correspondent

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Split screen with Elon Musk on the left and Sam Altman on the right

Split screen with Elon Musk on the left and Sam Altman on the right

Source: BbcOriginal source

Elon Musk alleges Sam Altman defrauded him of millions of dollars over OpenAI’s shift from a non‑profit to a capped‑profit model. Both founders testified, and the case now goes to the jury for deliberation.

Context Over three weeks in a California federal court, Musk’s lawyers argued that Altman broke the original agreement that OpenAI would remain a non‑profit focused on broad AI benefits. They claim the move to a for‑profit structure allowed Altman to divert funds that Musk says were promised to him. Altman and Musk each took the stand, presenting opposing views on the company’s direction and financial commitments.

Key Facts Musk says Altman’s actions cost him millions of dollars, describing the alleged conduct as fraud. Both executives gave testimony, marking a rare public clash of the AI pioneers. The trial moved to jury deliberation, and BBC reporter Lily Jamali summarized the main points presented during the proceedings.

What It Means The verdict could influence how AI companies balance profit motives with public‑good pledges, potentially setting a precedent for founder agreements in the sector. Observers will watch for the jury’s decision and any subsequent appeals, which may affect OpenAI’s governance and future funding structures.

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