Musk-Altman OpenAI Trial Wraps Testimony, Closing Arguments Next
Testimony in the Musk-Altman OpenAI governance trial has ended; closing arguments are May 14.
Why it matters: The dispute highlights major legal issues around nonprofit-to-profit transitions in AI, offering potential guidance for lawyers advising on tech governance, fiduciary duties, and nonprofit missions.
- Testimony concluded in the U.S. District Court for the Northern District of California.
- Musk claims OpenAI abandoned its nonprofit mission for profit and AI safety was sidelined.
- Altman rebutted, defending leadership and the evolution of OpenAI's structure.
- Closing arguments are scheduled for May 14, 2026, in the San Francisco-based court.
Final testimony ended this week in Elon Musk’s lawsuit against OpenAI and Sam Altman, a case examining whether OpenAI’s leadership breached its founding nonprofit mission in pivoting to commercial ventures.
- The trial began April 27, 2026, in the U.S. District Court for the Northern District of California.
- Musk, an early OpenAI backer with a $38 million investment, alleged leadership—especially Altman—deviated from a focus on AI safety to prioritize profit, underscored by major deals like the Microsoft partnership.
- Altman, testifying May 12, denied misleading Musk or disregarding OpenAI's original goals, saying, “I believe I am an honest and trustworthy businessperson.”
- Former board members Helen Toner and Tasha McCauley offered accounts describing strained leadership dynamics and internal disagreements on safety protocols.
Microsoft CEO Satya Nadella, addressing the fallout from Altman’s brief 2023 ouster, described the episode as "amateur city" and rooted in internal rivalry rather than governance failure.
Musk is seeking damages of $134 billion for return to the nonprofit, as OpenAI's valuation reached $852 billion in May 2026.
The closely watched dispute could set legal precedent for fiduciary responsibility in AI and nonprofit organizations, informing law firm and corporate policies on structuring future technology ventures.
Axios details here.
By the numbers:
- $852 billion — OpenAI’s May 2026 valuation.
- $134 billion — Damages Musk seeks for return to the nonprofit foundation.
- $38 million — Musk's initial stake in OpenAI.
Yes, but: While the testimony focused on leadership disputes, the case's outcome may depend on the court’s interpretation of specific nonprofit governance statutes, not just witness accounts.
What's next: Closing arguments are scheduled for May 14, 2026; the court's decision will follow.