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All of the updates from Elon Musk and Sam Altman’s battle over OpenAI

May 28, 2026  Twila Rosenbaum  11 views
All of the updates from Elon Musk and Sam Altman’s battle over OpenAI

The tech trial of the decade reached an anticlimactic end in May 2026 when a jury deliberated for just two hours before finding that Elon Musk's lawsuit against Sam Altman and OpenAI was barred by the statute of limitations. The case, which had captivated Silicon Valley and the broader tech world, featured testimony from some of the most powerful figures in artificial intelligence, including Musk himself, Altman, Microsoft CEO Satya Nadella, and OpenAI cofounder Greg Brockman. Yet, despite the wealth of drama, betrayal allegations, and personal animosity aired in the courtroom, the legal resolution came down to a simple question of timing.

Background of the Lawsuit

Elon Musk cofounded OpenAI in 2015 alongside Sam Altman, Greg Brockman, Ilya Sutskever, and others. The organization was established as a nonprofit with the mission of developing artificial intelligence that would benefit all of humanity, free from the profit-driven pressures of corporate giants like Google. Musk contributed significant funding, reportedly around $50 million, and helped recruit top talent. However, by 2018, Musk had left the board and distanced himself from the company, citing conflicts of interest with his work at Tesla and SpaceX. In 2019, OpenAI created a capped-profit subsidiary to attract more investment, and later entered into a deep partnership with Microsoft, which poured billions into the company.

In 2024, Musk filed a lawsuit in federal court accusing Altman and Brockman of breaching the founding agreement by prioritizing profits over safety and the public good. He alleged that the two had "tricked" him into donating money with the understanding that OpenAI would remain a nonprofit, only to later convert it into a for-profit entity that now competes with his own AI startup, xAI, which developed Grok. Musk sought to have Altman and Brockman removed from their positions and to force OpenAI to cease operations as a public benefit corporation.

The Trial Unfolds

The trial, presided over by U.S. District Judge Yvonne Gonzalez Rogers, began in late April 2026 and lasted nearly a month. The courtroom was described by reporters as a "zoo," with daily protests both for and against AI regulation, and a constant media presence. The jury included twelve ordinary citizens tasked with weighing conflicting narratives about the founding of OpenAI and the intentions of its key players.

Musk's legal team, led by Steven Molo, argued that Altman and Brockman had systematically misled Musk and other early donors. However, the defense, represented by William Savitt and Sarah Eddy, painted Musk as a sore loser who only turned against OpenAI after his own attempts to take control failed. They pointed to evidence that Musk had proposed merging OpenAI with Tesla and taking a majority stake in the for-profit arm, plans that were rejected by the other founders.

Key Testimony and Memorable Moments

Among the most talked-about moments was the introduction of the "jackass trophy." During testimony, it was revealed that after Musk called OpenAI research scientist Josh Achiam a "jackass" for questioning the safety implications of racing ahead of Google, Achiam's colleagues bought him a Little League-style trophy engraved with the phrase "Never stop being a jackass." Altman's team attempted to use this as evidence that Musk's concern for safety was not consistent with the image he now projects.

Another highlight was Musk's own testimony. He appeared evasive at times, frequently responding with "I don't recall" to questions about specific conversations and documents. Altman's lawyer Savitt counted at least 150 instances of such non-answers during the trial, arguing that Musk had "selective amnesia." Savitt also noted that Musk was absent from the courtroom for most of the proceedings, choosing to travel abroad with President Trump instead of attending closing arguments.

Shivon Zilis, a former OpenAI board member and mother of several of Musk's children, testified that she did not remember any specific restrictions on Musk's donations. This contradicted Musk's assertion that his contributions were conditional on OpenAI remaining a nonprofit. Sarah Eddy, in her closing argument, delivered the line: "Even the mother of his children can't back his story."

Satya Nadella, CEO of Microsoft, testified that his company conducted thorough due diligence before investing in OpenAI and found no evidence of any side deals or restrictions tied to Musk's donations. He emphasized that Microsoft never had control over OpenAI's board or decisions, despite being the largest investor.

Mira Murati, OpenAI's chief technology officer, told the court that she at times found it difficult to trust Altman's words, but she also acknowledged that the company's rapid growth and pivot toward commercialization were driven by necessity rather than greed. Greg Brockman, OpenAI's president, was questioned extensively about his personal notes, which seemed to show an evolving understanding of the company's structure. He described himself as someone who does "all the things" but struggled to provide clear answers about specific meetings.

The Verdict

After closing arguments, which included several gaffes by Musk's lawyer Molo—such as accidentally referring to Greg Brockman as "Greg Altman" and claiming Musk was not seeking any money—the jury retired to deliberate. They returned after about two hours with a unanimous verdict: all claims were dismissed because the statute of limitations had expired. The jury found that Musk knew or should have known about the alleged breach of contract as early as 2019, when OpenAI announced its for-profit arm, and that his lawsuit filed in 2024 was untimely.

Judge Yvonne Gonzalez Rogers accepted the jury's advisory verdict, noting that it was consistent with the evidence. She remarked that the trial had exposed a "room full of untrustworthy, unreliable people all fighting with each other." The outcome was a complete defeat for Musk, who had failed to prove that OpenAI had legally promised to remain a nonprofit in perpetuity.

OpenAI released a statement saying, "This lawsuit has always been a baseless and jealous bid to derail a competitor." Musk's legal team indicated they might appeal, but legal experts expressed skepticism about the chances of success given the clear statute of limitations ruling.

As for the broader implications, the trial revealed deep rifts within the AI community about safety, profit, and governance. While no legal precedent was set, the proceedings highlighted the personal vendettas and clashing egos that shape one of the most consequential industries of the 21st century. Observers noted that the case ultimately proved little beyond the fact that even the people building AI are fallible, petty, and often more concerned with winning than with the greater good.


Source: The Verge News


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