Musk vs. OpenAI Trial Highlights $38 Million Investment and Witness Claims
Closing arguments in Musk’s lawsuit against OpenAI highlighted his $38 million early investment and testimony from five longtime associates who called Sam Altman a liar, with the jury set to decide the case’s fate.
TL;DR
Elon Musk’s lawsuit against OpenAI heads to jury after closing arguments, with his lawyer citing Musk’s $38 million early investment and testimony from five longtime associates who called Sam Altman a liar.
Context
Closing arguments concluded on Thursday in the federal case where Musk alleges OpenAI abandoned its nonprofit charter to pursue profit. Musk, who was in China on a diplomatic trip, did not attend; his lawyer Steven Molo delivered the final remarks for the plaintiff.
OpenAI’s defense argued the suit was filed too late and that Musk himself sought to profit from the venture.
The case marks one of the first major legal tests of whether AI firms can be held to their original charitable missions.
Key Facts
Musk contributed $38 million to OpenAI during its formative years, according to court filings.
Microsoft provided $1 billion in 2019 and an additional $10 billion in 2023, making it the largest backer.
Molo told jurors he confronted Sam Altman with the fact that five witnesses who have known Altman for years testified under oath that he is a liar; the witnesses include Musk, former chief scientist Ilya Sutskever, former CTO Mira Murati, and former board members Helen Toner and Tasha McCauley.
OpenAI’s lawyer Sarah Eddy countered that Musk’s testimony is contradicted by other witnesses and documents, and that by 2017 all insiders recognized the nonprofit needed more funding than it could raise.
What It Means
The jury must decide whether the lawsuit was filed within the statute of limitations; if not, the case may be dismissed. If timely, jurors will weigh whether OpenAI violated a charitable trust by enriching investors and insiders.
The outcome could influence OpenAI’s path toward a planned initial public offering and shape how future AI ventures balance nonprofit goals with commercial pressure.
What to watch next
Watch for the jury’s verdict, expected in the coming weeks, and any subsequent appeals that could affect OpenAI’s valuation and governance structure.
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