Musk Lawyers Accuse OpenAI of Deception as Trial Closes

Lawyers for Elon Musk and OpenAI delivered their final pitches to a California jury Thursday in a trial that could determine whether one of the world's most powerful AI companies remains bound by its original nonprofit mission or continues its rapid shift toward profit-driven growth. The case, brought by Musk in 2024, accuses OpenAI chief executive Sam Altman and president Greg Brockman of deceiving early backers and abandoning the pledge to develop artificial intelligence for humanity's benefit rather than shareholder returns.

Musk's lead attorney Steven Molo told jurors that OpenAI had misused the $38 million Musk donated in its first years and pursued personal enrichment through stock grants and deals that benefited executives. He pointed to testimony from former OpenAI leaders including Ilya Sutskever and Mira Murati as evidence that Altman had misled colleagues about the company's direction. Molo framed the dispute as a straightforward breach of charitable trust that, if left unchecked, would allow OpenAI to convert its nonprofit status into a vehicle for massive private gain ahead of a planned initial public offering.

OpenAI's counsel countered that Musk's donations carried no binding restrictions and that the company had openly evolved its structure over time with Musk's initial knowledge. They urged the jury to reject the claims as untimely, noting that much of the alleged misconduct occurred years before Musk filed suit. The defense also argued that Musk's own conduct, including his launch of rival AI efforts at xAI, should bar him from prevailing. A key threshold question for jurors is whether Musk brought his action within the statute of limitations, a finding that could prompt the judge to dismiss the case outright.

The trial has featured testimony from an array of Silicon Valley figures, including Microsoft chief Satya Nadella and several OpenAI co-founders. Musk himself appeared on the stand last month, where he reiterated claims that Altman and Brockman had shifted the company toward commercialization without proper disclosure. The proceedings have drawn attention not only for their potential to reshape OpenAI's governance but also for the broader stakes in an industry racing to commercialize powerful models amid growing concerns over safety and concentration of control.

Complicating matters, Musk traveled to China this week for a state visit alongside President Trump even after the presiding judge indicated he remained subject to recall. Legal observers noted that such travel is unusual for a witness under those conditions, though no formal sanction has been issued. Musk is seeking Altman's removal from OpenAI's board along with damages that could reach into the billions, funds he says would return to the nonprofit arm.

Whatever the verdict, the outcome is expected to influence how other AI labs balance mission statements against investor pressure. With Anthropic and Musk's own xAI also eyeing large public offerings, the jury's decision could set precedents on fiduciary duties in hybrid nonprofit-for-profit structures that now dominate frontier AI development. Closing arguments wrapped late Thursday, with deliberations set to begin Friday.