OpenAI's defense centers on Musk's own support for a for-profit shift in 2017–2018 to secure funding and talent, and his rejected proposals to merge OpenAI with Tesla or assume the CEO role. The company characterizes his contributions as donations without equity claims and attributes the lawsuit to competitive jealousy over his xAI venture. OpenAI restructured last fall into a public benefit corporation with its nonprofit retaining a 26% stake. The trial uses an advisory jury for the liability phase, with opening arguments allocated 22 hours for Musk and OpenAI combined and 5 hours for Microsoft. A remedies phase begins May 18. Testimony will include Musk, Altman, Brockman, Microsoft CEO Satya Nadella, and former OpenAI executives.
The case carries significant implications for how courts treat nonprofit-to-profit conversions in tech, the enforceability of founding agreements, and control of AI development at a company now dominant in the market through ChatGPT. Judge Yvonne Gonzalez Rogers has set a compressed timeline, targeting jury deliberations by May 12 with an overall verdict expected within 2–3 weeks. The outcome could reshape OpenAI's corporate structure and set precedent for similar disputes in the AI sector.