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MuskOpenAI Fraud Trial Advances as Judge Blocks AI Doomsday Testimony

The outcome could reset the rules for turning nonprofit AI labs into for‑profit companies.

Overview

  • Elon Musk’s civil fraud case against Sam Altman and OpenAI is underway in federal court in Oakland, with Musk seeking more than $134 billion and the removal of top executives if the jury finds liability.
  • Judge Yvonne Gonzalez Rogers told Musk to stick to direct answers and barred talk of AI "extermination" and "Terminator" scenarios during testimony.
  • Jared Birchall, Musk’s wealth manager, testified that Musk gave about $38 million to OpenAI through roughly 60 donations and also covered monthly rent and shared security costs.
  • Greg Brockman is slated to testify next, and the court has treated his diary entries as key evidence after using them to justify a jury trial, which OpenAI says relies on selective excerpts.
  • Analysts say the case could affect OpenAI’s planned stock listing and set a precedent for how AI research nonprofits shift to commercial structures, which could sway investor confidence across the sector.