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OpenAI's $1tn IPO Hinges on Musk Lawsuit Verdict

Financial Times Companies •
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A jury verdict expected as soon as Monday could determine whether OpenAI clears its path to a $1tn IPO or loses its CEO. Sam Altman sat through three weeks of testimony in his legal fight with Elon Musk, a case that puts $134bn in damages and the company's entire future on the line. Judge Yvonne Gonzalez Rogers will ultimately decide the restructuring and Altman's fate.

Musk's case rests on whether his $38mn donation and involvement between 2015 and 2018 created a charitable trust breached by OpenAI's for-profit conversion. OpenAI's lawyers called the suit rooted in envy after ChatGPT proved Musk unnecessary. Altman's credibility became the trial's centerpiece, with his attorney arguing that if jurors didn't trust him, they couldn't win.

Microsoft's $13bn investment plus over $100bn in computing resources placed it at the center of Musk's claims. The judge herself called the damages numbers "out of the air." Even a Musk win likely won't remove Altman or reverse the restructuring, making the verdict largely symbolic for OpenAI's near-term path to going public.