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Musk-OpenAI Legal Trial Nears Verdict

Musk-OpenAI Legal Trial Nears Verdict

Newsmax
Monday, May 18, 2026
  • •Jury deliberations begin Monday in Elon Musk’s $134 billion lawsuit against OpenAI and its leadership.
  • •Musk alleges OpenAI breached its nonprofit mission by restructuring its corporate entity for-profit.
  • •A favorable verdict could force the removal of CEO Sam Altman and unwind company restructuring.
  • •Jury deliberations begin Monday in Elon Musk’s $134 billion lawsuit against OpenAI and its leadership.
  • •Musk alleges OpenAI breached its nonprofit mission by restructuring its corporate entity for-profit.
  • •A favorable verdict could force the removal of CEO Sam Altman and unwind company restructuring.

A nine-person federal jury in Oakland, California, is scheduled to begin deliberations on Monday regarding a lawsuit filed by Elon Musk against OpenAI, CEO Sam Altman, and President Greg Brockman. The legal action alleges that the defendants betrayed the company’s nonprofit origins by restructuring into a for-profit entity, with Musk claiming his early donations of roughly $38 million were diverted to unauthorized commercial interests. While the jury will provide an advisory verdict on civil claims of breach of charitable trust and unjust enrichment, U.S. District Judge Yvonne Gonzalez Rogers holds sole authority for the final liability ruling.

Closing arguments for the trial concluded Thursday after approximately three weeks of testimony that commenced with jury selection on April 27. Microsoft, as a principal investor in OpenAI, is a co-defendant in the case under an aiding-and-abetting theory; both Microsoft and OpenAI deny all allegations of wrongdoing. OpenAI’s defense maintains that no binding commitments were made to Musk regarding corporate structure and argues that Musk’s legal efforts are motivated by a desire for control rather than mission adherence.

A separate remedies phase is set to begin concurrently before Judge Gonzalez Rogers on Monday. Musk is seeking the removal of Altman and Brockman, the unwinding of the company’s October 2025 recapitalization into a public benefit corporation, and disgorgement of up to $134 billion. Any financial recovery would be directed to OpenAI’s nonprofit foundation according to Musk. As of a funding round closed earlier this year, OpenAI held a valuation exceeding $850 billion, and a ruling in Musk’s favor could significantly disrupt the company's path toward a public offering and impact Microsoft’s multibillion-dollar investment.

A nine-person federal jury in Oakland, California, is scheduled to begin deliberations on Monday regarding a lawsuit filed by Elon Musk against OpenAI, CEO Sam Altman, and President Greg Brockman. The legal action alleges that the defendants betrayed the company’s nonprofit origins by restructuring into a for-profit entity, with Musk claiming his early donations of roughly $38 million were diverted to unauthorized commercial interests. While the jury will provide an advisory verdict on civil claims of breach of charitable trust and unjust enrichment, U.S. District Judge Yvonne Gonzalez Rogers holds sole authority for the final liability ruling.

Closing arguments for the trial concluded Thursday after approximately three weeks of testimony that commenced with jury selection on April 27. Microsoft, as a principal investor in OpenAI, is a co-defendant in the case under an aiding-and-abetting theory; both Microsoft and OpenAI deny all allegations of wrongdoing. OpenAI’s defense maintains that no binding commitments were made to Musk regarding corporate structure and argues that Musk’s legal efforts are motivated by a desire for control rather than mission adherence.

A separate remedies phase is set to begin concurrently before Judge Gonzalez Rogers on Monday. Musk is seeking the removal of Altman and Brockman, the unwinding of the company’s October 2025 recapitalization into a public benefit corporation, and disgorgement of up to $134 billion. Any financial recovery would be directed to OpenAI’s nonprofit foundation according to Musk. As of a funding round closed earlier this year, OpenAI held a valuation exceeding $850 billion, and a ruling in Musk’s favor could significantly disrupt the company's path toward a public offering and impact Microsoft’s multibillion-dollar investment.

Read original (English)·May 16, 2026
#elon musk#openai#sam altman#lawsuit#public benefit corporation#microsoft

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