Musk lawyers accuse OpenAI of deception in close of mega-trial

Axios
Published

The short version

  • Why it matters: Musk wants CEO Sam Altman ousted from OpenAI's board as well as billions of dollars in damages, though he says he would donate any winnings back to OpenAI's nonprofit arm.
  • Driving the news: In his closing argument, lawyer Steven Molo argued that OpenAI violated its nonprofit mission to pursue safe, powerful AI for the world…
  • Catch up quick: in 2024, Musk sued OpenAI, Altman, and President Greg Brockman, alleging OpenAI and its founders breached their duties to the charitable mission. Later that year Musk added…
  • The intrigue: This case is proceeding differently than many others. The jury's verdict is only advisory and the judge can decide to overrule it. Also…

The story

Attorneys for Elon Musk wrapped up their case against OpenAI on Thursday, asserting in closing arguments that they've proven the AI giant misused the millions of dollars Musk donated and violated their duty to uphold OpenAI's founding ethos.

  • Next up in the mega-trial, lawyers for OpenAI and Microsoft will argue that the organization's structure has changed but its mission hasn't.

Why it matters: Musk wants CEO Sam Altman ousted from OpenAI's board as well as billions of dollars in damages, though he says he would donate any winnings back to OpenAI's nonprofit arm.


Driving the news: In his closing argument, lawyer Steven Molo argued that OpenAI violated its nonprofit mission to pursue safe, powerful AI for the world — and that its executives instead sought to reap personal gain through stock grants and self-dealing with entities in which they had financial stakes.

  • Molo put particular emphasis on Altman's trustworthiness, saying his claims of honesty were undercut by testimony from former colleagues Ilya Sutskever and Mira Murati as well as ex-board members Helen Toner and Tasha McCauley.

Catch up quick: in 2024, Musk sued OpenAI, Altman, and President Greg Brockman, alleging OpenAI and its founders breached their duties to the charitable mission. Later that year Musk added Microsoft to the suit, saying it aided and abetted OpenAI's breach of its obligations.

  • In a trial that began last month, jurors have heard from some of the biggest names in AI, including Musk, Altman, OpenAI board chair Bret Taylor and Microsoft CEO Satya Nadella, as well as a host of other former OpenAI employees and board members.

The intrigue: This case is proceeding differently than many others. The jury's verdict is only advisory and the judge can decide to overrule it.

  • Also, if the ultimate ruling is against OpenAI and/or Microsoft, there will be a separate portion of the trial to decide damages.
Read the full story at AxiosOriginal

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