Elon Musk's Legal Team Accuses OpenAI of Misusing Donations in Closing Arguments of Mega-Trial

Attorneys for Elon Musk concluded their case against OpenAI on Thursday, presenting closing arguments that the AI organization misused millions of dollars in donations and violated its duty to uphold OpenAI's founding nonprofit ethos.

Next in the mega-trial, lawyers for OpenAI and Microsoft will argue that while the organization's structure has evolved, its mission to develop safe and powerful AI for the public good has remained intact.

Why This Case Matters

Musk is seeking two primary outcomes: the removal of CEO Sam Altman from OpenAI's board and billions of dollars in damages. Notably, Musk has stated that any financial compensation awarded would be donated back to OpenAI's nonprofit arm.

Key Arguments Presented by Musk's Legal Team

In his closing argument, lawyer Steven Molo alleged that OpenAI executives, including Altman, violated the organization's nonprofit mission by prioritizing personal financial gains. Molo pointed to stock grants, self-dealing, and financial conflicts of interest as evidence of misconduct.

Molo specifically challenged Altman's credibility, stating that his claims of honesty were contradicted by testimony from former colleagues, including:

• Ilya Sutskever, former Chief Scientist
• Mira Murati, former Chief Technology Officer
• Helen Toner, former board member
• Tasha McCauley, former board member

Background and Timeline of the Legal Dispute

In 2024, Musk filed a lawsuit against OpenAI, Altman, and President Greg Brockman, accusing them of breaching their fiduciary duties to OpenAI's charitable mission. Later that year, Musk expanded the lawsuit to include Microsoft, alleging the tech giant aided and abetted OpenAI's alleged breach of obligations.

The trial, which began last month, has featured testimony from prominent figures in the AI industry, including:

• Elon Musk
• Sam Altman
• Bret Taylor, OpenAI board chair
• Satya Nadella, Microsoft CEO
• Former OpenAI employees and board members

Unique Aspects of the Trial

This case is proceeding differently from typical legal proceedings. The jury's verdict will be advisory only, meaning the presiding judge retains the authority to overrule it. Additionally, if the final ruling is against OpenAI and/or Microsoft, a separate phase of the trial will determine the extent of damages.