Musk accused of 'selective amnesia,' Altman of lying as OpenAI trial nears end

A lawyer for Elon Musk attacked the credibility of OpenAI CEO Sam Altman on Thursday during closing arguments in an Oakland, California federal court.

The trial centers on whether OpenAI and its leaders should be held liable for allegedly transforming the nonprofit into a vehicle to enrich themselves. OpenAI's lawyers fired back, accusing Musk of "selective amnesia" and arguing his lawsuit came too late.

What is the Musk vs OpenAI trial about?

Musk is suing OpenAI and Altman for breach of charitable trust and unjust enrichment, claiming they manipulated him into donating $38 million before secretly attaching a for-profit business to the original nonprofit and accepting tens of billions from Microsoft.

He is seeking roughly $150 billion in damages, to be paid to OpenAI's nonprofit, and wants both Altman and OpenAI President Greg Brockman removed from their roles. OpenAI denies the claims and says Musk's lawsuit was filed too late.

What did Musk's lawyer argue in closing arguments?

Musk's lawyer Steven Molo told jurors that five witnesses, including Musk himself, former OpenAI board members and former Chief Scientist Ilya Sutskever, testified that Altman was a liar.

Molo pointed out that during cross-examination, Altman declined to say unequivocally that he was completely trustworthy and had never misled people in business. "Sam Altman's credibility is directly at issue in this case," Molo said. "If you don't believe him, they cannot win."

Molo accused OpenAI of wrongfully enriching investors and insiders at the nonprofit's expense and failing to prioritize AI safety. He cited OpenAI President Greg Brockman's statement that his own stake in the company was worth nearly $30 billion. "The arrogance, the lack of sensitivity, the failure to account for just common decency is really, really abhorrent," Molo said.

Musk also accused Microsoft of aiding OpenAI's alleged wrongdoing. Microsoft invested $1 billion in OpenAI in 2019 and a further $10 billion in 2023. "Microsoft was aware of what OpenAI was doing every step of the way," Molo argued.

How did OpenAI respond to Musk's closing arguments?

OpenAI lawyer Sarah Eddy accused Musk and his legal team of resorting to "sound bites and irrelevant false accusations."

She argued that by 2017, everyone connected to OpenAI, including Musk, who was still on the board, knew the organization needed more funding than it could raise as a nonprofit.

"Mr. Musk wanted to turn OpenAI into a for-profit company that he could control," Eddy said. "But the other founders refused to turn the keys of AGI over to one person, let alone Elon Musk."

Eddy said Musk's claim to believe AI should serve humanity was undermined by his own push to fold OpenAI into Tesla and his decision to make rival AI company xAI a for-profit business. She also expressed disbelief that one of the most sophisticated businessmen in the world claimed not to have read a four-page term sheet from 2018 that outlined OpenAI's plans to seek outside investment.

OpenAI lawyer William Savitt added that Musk had "selective amnesia," and argued that his three-year statute of limitations had already expired by the time he filed suit in August 2024.

Savitt also challenged Musk's claim to have been central to OpenAI's success. "Mr. Musk may have the Midas touch in some areas, but not in AI," Savitt said. "To succeed in AI, as it turns out, all Mr. Musk can do is come to court." Microsoft's lawyer Russell Cohen said separately that his client was not involved in the case's key events and had been "a responsible partner at every step."

What happens next in the OpenAI trial?

The nine-person jury is expected to begin deliberating on Monday. U.S. District Judge Yvonne Gonzalez Rogers and the lawyers will return to court the same day to discuss how OpenAI should be restructured and what damages should be paid if Musk wins. No remedies will be imposed if he loses.

Altman and Brockman were present in court for closing arguments. Musk was not, accompanying U.S. President Donald Trump on a visit to China.

Why does the OpenAI trial matter beyond the courtroom?

The case arrives as public concern over artificial intelligence continues to grow. AI is now used across facial recognition, financial services, journalism, medical diagnosis and the creation of harmful deepfakes, and many people worry the technology could displace workers at scale.

The outcome also carries significant commercial stakes. OpenAI is preparing for a possible initial public offering that could value the company at $1 trillion, and Microsoft has spent more than $100 billion on its OpenAI partnership. Musk's xAI, now part of his SpaceX enterprise, is also preparing a potential IPO, meaning both sides of this lawsuit have enormous financial interests in the verdict.