Elon Musk’s past use of the drug ketamine will not be admissible as evidence in his high-stakes legal battle with OpenAI Inc. and Microsoft Corp., a U.S. federal judge ruled, as the Silicon Valley trial over potential fraud inches closer.
At a Friday hearing in Oakland, California, U.S. District Judge Yvonne Gonzalez Rogers clarified the scope of evidence for the case, which will revisit the founding of OpenAI a decade ago, its split with Musk, and Microsoft’s subsequent $13 billion investment in the AI startup.
The trial, set to begin April 28, will focus on whether OpenAI co-founders, including CEO Sam Altman and Greg Brockman, misrepresented their intent to maintain a nonprofit structure when Musk contributed $38 million in seed funding.
What they are saying
Musk is seeking up to $134 billion in damages, a figure that would rank among the largest verdicts in U.S. history if awarded.
OpenAI and Microsoft have denied the allegations, and the judge expressed skepticism of the damages calculations presented by Musk’s expert witness, financial economist C.
Paul Wazzan, who argued Musk could be entitled to between $79 billion and $134 billion based on OpenAI’s current valuation. Gonzalez Rogers noted that Wazzan’s methodology was “not particularly persuasive”, citing concerns about its unprecedented nature and unverifiability.
- During the hearing, OpenAI’s lawyers attempted to question Musk about ketamine use during negotiations, citing potential impacts on his decision-making.
- The judge rejected this, ruling that drug use is irrelevant without concrete evidence of impaired judgment, though she allowed limited discussion of Musk’s attendance at Burning Man, where the Silicon Valley billionaire has interacted with company executives. Musk has said he used ketamine under prescription years ago and denies recent recreational use.
What you should know
The trial is expected to feature testimony from several high-profile Silicon Valley figures, including Sam Altman, Greg Brockman, Ilya Sutskever, Shivon Zilis, and potentially Microsoft CEO Satya Nadella.
- Musk is also expected to testify, along with his expert witness on damages. All witnesses are required to enter the courthouse through public entrances, and both parties must cover jury lunches during deliberations.
- Judge Gonzalez Rogers also indicated that any jury determination on damages would likely be advisory, with the court ultimately deciding the final award.
She further noted that punitive damages are unlikely, narrowing the focus to actual financial claims arising from Musk’s allegations of OpenAI abandoning its nonprofit mission.
