Synopsis
A high-stakes trial between AI pioneer Elon Musk and OpenAI, co-founded by Musk, has commenced. Musk alleges the company, now a for-profit entity, has strayed from its original mission. The proceedings will first determine liability, with a jury's verdict being advisory, before potentially moving to a remedies phase overseen solely by the judge. Key tech figures are expected to testify.How will the proceedings unfold?
The proceedings are being structured in two distinct phases: a liability phase and a remedies phase, CNBC reported.
In the first phase, the court will examine liability. During this stage, a nine-member jury will hear arguments and review evidence to determine whether OpenAI and its executives, including Altman and company president Greg Brockman, are at fault. The jury comprises a mix of professionals, including nurses, city workers, and retirees. If liability is established, both sides will present arguments on remedies.
Per media reports, while the jury will deliberate and issue a verdict, its decision will be advisory in nature, with Judge Gonzalez Rogers retaining final authority over the outcome.
If the court finds in favour of Musk during the liability phase, the trial will proceed to the remedies stage. In this second phase, Judge Rogers alone will hear arguments on potential consequences and corrective measures. Jurors will not participate in this portion of the trial and will not participate in discussions related to remedies.
Opening arguments, scheduled to begin from Tuesday, started at 8:30 AM Pacific Time (PT), which is 8:30 PM Indian Standard Time (IST), and follow from initial jury-related proceedings on Monday.
Attorneys for both sides are in the process of presenting their opening arguments before the jury, outlining their cases. If time permits, the plaintiff’s legal team may begin calling witnesses soon after.
Witness lists submitted in February this year, include prominent technology figures such as former OpenAI chief technology officer Mira Murati and Microsoft CEO Satya Nadella.
Per Reuters, Judge Rogers has indicated she wants jurors to begin deliberations on liability by May 12.
The trial will continue through the week with testimony from key witnesses, potentially influencing the legal and governance landscape of AI.
What is the case?
The dispute centres on the founding and evolution of OpenAI. The case intends to decide whether the AI startup has deviated from its original mission of ensuring that artificial general intelligence (AGI) benefits humanity.
Established in 2015, with Musk and Altman as cofounders, as a nonprofit aimed, the organisation later created a for-profit subsidiary in 2019 after Musk’s departure to attract investment.
In 2024, Musk sued Altman, OpenAI, and Microsoft, alleging he was misled into contributing about $38 million based on assurances the organisation would remain nonprofit. He claims Altman and president Greg Brockman abandoned OpenAI’s original mission and turned it into a profit-driven enterprise.
Musk is seeking structural changes, including reverting OpenAI to a nonprofit and removing Altman and Brockman from leadership. He is currently pursuing claims related to breach of charitable trust and unjust enrichment.
OpenAI disputes these allegations, stating Musk was aware of and supported the shift to a for-profit structure and only filed suit after failing to secure a leadership role. It also argues that his actions are tied to competition from his own AI venture, xAI, launched in 2023.
The case has escalated into a broader legal and business conflict, with Microsoft denying any wrongdoing. The trial is expected to scrutinise OpenAI’s transition from a nonprofit lab to a major commercial entity and could impact its governance, future fundraising, and potential public listing.
