A California jury has begun deliberations in the closely watched lawsuit involving Elon Musk, Sam Altman, and OpenAI over the future direction of the artificial intelligence company.

Although the trial covered several years of disputes within the organization, jurors are expected to focus only on a limited number of legal questions concerning Musk’s donations and OpenAI’s transition into a for-profit structure.

One of the central claims before the court is whether OpenAI and its cofounders violated a charitable trust agreement tied to Musk’s donations.

Musk’s legal team argues that the billionaire supported the organization with the understanding that it would remain a nonprofit focused on advancing artificial intelligence safely for the benefit of humanity.

They further claim that OpenAI’s growing commercial partnerships, especially its multibillion-dollar relationship with Microsoft, shifted the company away from its original mission.

The lawsuit also accuses OpenAI executives of unjust enrichment. Musk’s attorneys contend that company leaders and investors benefited financially from technology that was developed using funds originally intended for charitable purposes.

The plaintiffs pointed to the soaring valuations attached to OpenAI’s for-profit arm and the financial interests of executives and investors as evidence that the organization prioritized profit over public interest.

OpenAI has strongly denied the allegations. The company maintains that no formal restrictions were attached to Musk’s donations and that all contributions were fully utilized years before the current dispute emerged.

Company lawyers also argued that the organization always understood that substantial private investment would be necessary to build advanced artificial intelligence systems.

According to OpenAI, its commercial arm remains aligned with the nonprofit’s mission and continues to support research, safety initiatives, and free public access to tools such as ChatGPT.

Another major issue in the case concerns whether Microsoft knowingly supported actions that allegedly violated Musk’s expectations for the organization.

Musk’s legal team highlighted Microsoft’s influence during the temporary removal and return of Altman in 2023, arguing that corporate interests increasingly shaped OpenAI’s decisions.

Microsoft executives, however, testified that they were never informed of any special conditions tied to Musk’s donations and insisted the company never exercised improper control over OpenAI’s operations.

The jury is also weighing several defenses raised by OpenAI, including claims that Musk waited too long to file the lawsuit and that his own conduct undermines his case.

OpenAI attorneys argued that Musk was aware of the company’s structure and fundraising activities for years before initiating legal action in 2024.

They also accused Musk of attempting to establish competing AI ventures while still associated with OpenAI.

If the jury rules in Musk’s favor, the decision could significantly reshape OpenAI’s corporate structure and potentially challenge its future as a for-profit enterprise.

Source: TechCrunch