Jury Deliberates Elon Musk's Lawsuit Against OpenAI: Nonprofit Status and $134 Billion at Stake
May 16, 2026
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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Newsmax • May 16, 2026
Musk-OpenAI Trial Nears High-Stakes Verdict