The landmark legal battle between Elon Musk and OpenAI reached its climax on Thursday, May 14, 2026, as both sides delivered closing arguments in an Oakland, California, federal court. The trial, which has gripped Silicon Valley for weeks, centers on Musk’s allegations that OpenAI CEO Sam Altman and President Greg Brockman betrayed the company’s founding nonprofit mission to enrich themselves.
The Arguments: “Charitable Trust” vs. “Jealousy”
Musk’s legal team argued that OpenAI was built on a “charitable trust” to develop safe Artificial General Intelligence (AGI) for the benefit of humanity. They claim the shift to a for-profit structure and the partnership with Microsoft—which Musk alleges has received “billions” in benefits—was a breach of that trust.
OpenAI’s defense countered that Musk’s lawsuit is fueled by “selective amnesia” and jealousy over the company’s success after he left in 2018. Their attorneys argued:
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No Contract: Musk never signed a formal contract stating the company would remain a nonprofit forever.
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Statute of Limitations: Musk waited too long to sue, as he was aware of the company’s shift toward a for-profit model as early as 2017.
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Hypocrisy: Lawyers pointed out that Musk attempted to fold OpenAI into Tesla and has since launched his own for-profit AI firm, xAI.
The “Liar” Allegation: Altman’s Credibility
A major focus of the closing day was the personal credibility of Sam Altman. Musk’s attorney, Steven Molo, emphasized testimony from five key witnesses—including OpenAI co-founder Ilya Sutskever and former CTO Mira Murati—who described Altman as “untrustworthy” or a “liar.”
“Sam Altman’s credibility is directly at issue in this case,” Molo told the jury. “If you don’t believe him, they cannot win. It’s that simple.”
Altman and Brockman were present in the courtroom for the final arguments, while Musk was reportedly in China accompanying President Donald Trump on a diplomatic visit.
What’s at Stake?
The jury of nine is expected to begin deliberations on Monday, May 18. The outcome could significantly alter the AI landscape:
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IPO at Risk: A win for Musk could derail OpenAI’s planned $1 trillion Initial Public Offering (IPO) scheduled for later this year.
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Leadership Ouster: Musk is seeking the removal of both Altman and Brockman from their leadership roles.
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Financial Penalties: While Musk isn’t seeking personal damages, he is pushing for “billions of dollars in disgorgement” to be returned to OpenAI’s charitable arm.
If the jury finds the defendants liable, U.S. District Judge Yvonne Gonzalez Rogers will determine the final remedies, which could include forcing OpenAI to restructure its current business model.
