OpenAI Trial: Jury Deliberates Altman's Fate, $134B Penalty

A federal jury in Oakland is now deliberating whether OpenAI's CEO Sam Altman and president Greg Brockman violated charitable-trust law. This follows a lawsuit from co-founder Elon Musk. Musk alleges that Altman and Brockman converted the nonprofit AI lab into an $852 billion for-profit corporation. He claims about $38 million he donated was diverted for unauthorized commercial purposes. He also says they broke commitments to keep the company's mission altruistic and its technology open-source. The jury's advisory verdict could come as early as next week. The judge retains sole authority over the final ruling. Penalties under consideration include removing Altman and Brockman and up to $134 billion in disgorgement from OpenAI and Microsoft. A journal entry from Brockman in 2017, calling the nonprofit commitment "a lie," was a key piece of evidence. A ruling against OpenAI could jeopardize Microsoft's over $13 billion investment and disrupt OpenAI's path toward a $1 trillion IPO. This legal battle could significantly impact the future of a major AI platform.