Jury to Decide Fate of OpenAI's Future as Musk vs. Altman Trial Enters Final Stretch
Breaking: The jury in the landmark Musk v. Altman trial is set to begin deliberations on Monday, with a verdict that could reshuffle the AI industry's power dynamics. At stake is OpenAI's multibillion-dollar for-profit restructuring and the credibility of its CEO Sam Altman.
In the trial's final week, lawyers for both Elon Musk and Altman traded accusations over motives and integrity. Altman faced intense cross-examination about his alleged history of deception and self-dealing with companies that partner with OpenAI. He countered by portraying Musk as a power-hungry figure, even recounting a 2017 conversation where Musk reportedly said, “Maybe the control of OpenAI should pass to my children,” when asked about his control after death.
Background
The lawsuit, filed by Musk in 2023, alleges that Altman and OpenAI president Greg Brockman betrayed the nonprofit's original mission to develop AI for humanity's benefit. Musk, an early investor and cofounder, claims they diverted his donations toward a for-profit subsidiary that made them wealthy.
OpenAI's lawyer Sarah Eddy argued that no such promise was ever made and that Musk's real goal is to hobble a competitor to his own AI firm, xAI, which is targeting a $1.75 trillion valuation. She also noted the company still operates as a nonprofit dedicated to safe AI development.
Key Evidence and Testimony
A curious piece of evidence emerged: a golden trophy of a donkey's ass given to an OpenAI employee after he was called a “jackass” for resisting Musk's aggressive AGI timeline. The trophy was presented as proof of OpenAI's commitment to safety, but Musk's team framed it as a sign of internal dysfunction.
Closing arguments featured unflattering mugshot-style photos of both men displayed side by side. Musk's lawyer Steven Molo argued that Altman and Brockman broke their word, while Eddy countered that Musk is a power-seeker who sued too late—and only after launching xAI.
Altman denied being a liar, telling the jury that his decisions were always focused on advancing AI safely. He acknowledged tensions with Musk over control and speed, but insisted the company's shift to a for-profit model was necessary to secure funding.
What This Means
If the judge rules in Musk's favor, he could unwind OpenAI's 2025 restructuring into a public benefit corporation, remove Altman and Brockman from leadership, and award up to $134 billion in damages to OpenAI's nonprofit. Such a ruling would jeopardize OpenAI's planned IPO, currently valued near $1 trillion.
Conversely, a win for OpenAI would solidify Altman's control and allow the company to proceed with its stock market debut. Meanwhile, Musk's xAI, set to go public via SpaceX at a $1.75 trillion valuation, would face less regulatory scrutiny.
The jury's advisory verdict—expected as early as next week—will guide Judge Yvonne Gonzalez Rogers, who retains final authority. The outcome could set a precedent for how AI companies balance profit with public mission.