The first phase of the Elon Musk vs. OpenAI trial wrapped in federal court in Oakland, California, as both sides presented closing arguments before a jury now set to weigh claims over alleged broken nonprofit commitments and billions in damages.
Jury Begins Deliberations In High-Stakes AI Dispute
A nine-person advisory jury—six women and three men—will begin deliberations on Monday, CNBC reported.
U.S. District Judge Yvonne Gonzalez Rogers will ultimately issue the final ruling on liability. The jury was instructed to base its decision solely on the evidence presented in court.
"You must decide the case solely on the evidence before you," Rogers told jurors Thursday.
Musk Alleges Broken Nonprofit Mission And Misuse Of Funds
Musk sued OpenAI in 2024, alleging its leadership abandoned its nonprofit mission and improperly redirected roughly $38 million in donations for commercial purposes.
He also claims insiders, including CEO Sam Altman and President Greg Brockman, personally benefited from the shift.
The tech mogul's attorney argued OpenAI failed to remain transparent about its structure and safety commitments, accusing executives of enriching themselves at Musk's expense.
OpenAI Rejects Allegations, Points To Competition
OpenAI's legal team denied any binding promise to Musk, arguing funds were used appropriately and that Musk's lawsuit followed his launch of competing AI firm xAI.
"He never cared about the nonprofit structure… What he cared about was winning," an OpenAI attorney told jurors.
Microsoft Also Named In Lawsuit
Microsoft Corp (NASDAQ:MSFT) is also a defendant, with Musk alleging it aided OpenAI's alleged breach of charitable trust.
The company denies wrongdoing.
If liability is found, the case will move to a remedies phase where a judge will consider damages and possible structural changes, including Musk's request for billions in restitution.
Price Action: Microsoft closed at $409.43, up 1.04% on Thursday and was trading lower in pre-market at $405.46 on Friday, down 0.97%, according to Benzinga Pro.
Benzinga Edge Rankings indicate that MSFT shows a negative trend over the medium- and long-term horizons, while maintaining a positive trend in the short term.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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