Musk Lawyers Accuse OpenAI of Deception as Trial Closes
Cover image from theverge.com, which was analyzed for this article
Elon Musk's lawyers accused OpenAI of deception in closing arguments of the landmark trial, as Musk attended Trump-Xi summit despite judge's warning. It could shape AI's future. Apology issued for absence.
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Thursday, May 14, 2026 — Tech
The central unresolved question is whether OpenAI’s evolution from nonprofit to commercial entity violated an enforceable founding commitment or represented necessary adaptation. The jury’s advisory verdict will inform but not bind the judge’s final ruling on leadership and remedies. Readers should track both the mission-breach claims and the timing defense to understand the case’s full stakes.
What outlets missed
Most coverage omitted that the jury’s decision is advisory only, leaving Judge Gonzalez Rogers with final say on liability and remedies. Few noted Musk’s exact donation total of $38 million across 2015-2018 or the specific 2023 Microsoft investment terms that OpenAI’s side called mission-preserving. Outlets also underplayed contemporaneous documents showing Musk proposed taking majority control in 2018 and the absence of any written contract defining a charitable trust. The full scope of requested relief—Altman’s ouster plus valuation-based disgorgement—was rarely detailed alongside OpenAI’s statute-of-limitations defense.
The balance of power in artificial intelligence development now rests with a jury weighing whether OpenAI abandoned its founding principles for profit. Elon Musk, who helped create the company in 2015 as a nonprofit, claims its leaders diverted millions in donations toward personal gain and a closed system. The outcome could force leadership changes at OpenAI, reshape upcoming public offerings across the sector, and set precedents for how AI labs balance safety promises with commercial realities.
Closing arguments concluded Thursday in Oakland federal court. Musk’s counsel Steven Molo told jurors that OpenAI executives, including CEO Sam Altman, misled donors and the public about maintaining an open, nonprofit mission focused on safe AI. Molo cited testimony from five former colleagues who questioned Altman’s credibility under oath. He argued that emails, website statements, and early interviews created an enforceable charitable trust that OpenAI later breached by pursuing massive Microsoft investments and restricting technology access.
OpenAI’s attorney countered that Musk’s $38 million in early contributions carried no binding restrictions. The defense maintained that structural evolution was necessary to secure compute resources and that the suit arrived after the statute of limitations. They also pointed to Musk’s own 2018 proposal for majority control as evidence that he sought to steer the organization toward for-profit ends. U.S. District Judge Yvonne Gonzalez Rogers instructed the jury that its verdict is advisory; she retains final authority on liability and any remedies.
Musk did not attend the final day. His lawyer apologized to jurors, noting the Tesla CEO was traveling in China. The judge had placed Musk on recall status after his April testimony, though no formal travel ban was issued. Musk seeks Altman’s removal from OpenAI’s board and billions in funds directed to the nonprofit arm rather than personal damages. Deliberations began Thursday afternoon.
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