Jury Deliberates Elon Musk's Lawsuit Against OpenAI: Nonprofit Status and $134 Billion at Stake

May 16, 2026
Jury Deliberates Elon Musk's Lawsuit Against OpenAI: Nonprofit Status and $134 Billion at Stake
  • A nine-person federal jury in Oakland, California, is set to begin deliberations in a high-stakes case over Elon Musk’s lawsuit against OpenAI, its leaders Sam Altman and Greg Brockman, with potential implications for OpenAI’s nonprofit status, its for-profit conversion, and a possible path to a public offering.

  • If liability is established, a remedies phase will determine financial and structural remedies, with any recovered funds going to OpenAI’s nonprofit foundation rather than Musk.

  • OpenAI and Microsoft—OpenAI’s principal investor—are defendants; OpenAI argues there was no binding commitment to a charitable structure and Musk’s donations were unrestricted, while Musk’s team contends Altman and Brockman ‘stole a charity.’

  • Closing arguments wrapped up after about three weeks of testimony, and the trial began on April 27, with the remedies phase running concurrently with jury deliberations.

  • The jury will issue advisory findings on liability for two civil claims—breach of charitable trust and unjust enrichment—though the judge retains final authority over liability.

  • A Musk victory could complicate Microsoft’s stake and OpenAI’s planned IPO, given private valuation and investor dynamics.

  • The case is a centerpiece in a broader battle over OpenAI’s corporate structure, nonprofit roots, and governance of a leading AI company.

  • Musk contends OpenAI diverted roughly $38 million from early donations to unauthorized commercial purposes and seeks up to $134 billion in disgorgement, plus removal of Altman and Brockman and unwinding OpenAI’s October 2025 recapitalization into a public-benefit corporation.

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Musk-OpenAI Trial Nears High-Stakes Verdict

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