mathematically, if you freeze everything in place,
-then yes, that's correct. -Thank you.
-But that's not actually what happened. -You didn't do any analysis to determine
whether that twenty percent increase was commercially justified, correct?
Um, I did. I, I read everything that Professor Schizer said and wrote about,
and I analyzed his analysis, and I brought to bear my experience in reaching the
conclusion that it was a perfectly reasonable, um, business transaction for
the for-profit to put into place.
Professor Coates, you wrote an expert report in this case, correct?
-I did. -And that report contained your entire
analysis?
No, it contained the entire analysis as of the date of the report, which was after
Professor Schizer's first report, but before his second report and before his
-testimony in this case. -And just to be clear, Professor Schizer
talked about the twenty percent TRA increase in his first report, right?
-Uh, he did. So did I in my rebuttal. -And in your rebuttal, the only mention of
the twenty percent TRA increase is in one background paragraph on, in paragraph
twenty?
Um, I, I haven't memorized my report with that level of specificity. Um, I don't
actually think that's true because I do have a figure and a table which reflect
the TRAs, including the total structure of the TRAs over time.
And, and that figure doesn't take account of the twenty percent increase in twenty
-twenty-five, does it? -Because we never got to twenty
-twenty-five. -Thank you, Professor Coates. Uh, court's
indulgence, Your Honor.
-No, I think you probably are done here. -Thank you, Judge.
Microsoft?
-No questions from Microsoft. -Any
rebuttal?
-Very quickly. -Or reexamination?
Thank you.
-You too are very short. -Appreciate that.
Yeah, I'm on a clock too. Professor Coates, a couple of quick questions. Thank
you. Counsel made reference to your previous employment at the Wachtell Lipton
-firm. You recall that? -Yes.
-That was about thirty years ago. -Correct.
Um, so long ago that you and I never even overlapped at the firm, and I'm an old
guy.
-[laughing] -We did not overlap-
-Right -... at all.
And in the years since, you've often been on the other side of Wachtell Lipton in
-litigation, isn't that true? -Correct. You're right.
Ha-have you worked for both defendants and plaintiffs as an expert?
In-- Across a whole range of cases on both sides, correct.
Do you work for a wide range of law firms and clients in that capacity?
I do. I work for dozens of law firms, including Quinn Emanuel, which is Mr.
-Musk's primary outside law firm. -Objection, Your Honor.
-Overruled. -Now, y-
counsel made reference to your work in a Twitter case. Do you recall that?
-I do. -Uh, that case was from twenty twenty.
Correct.
Uh, Mr. Musk didn't even own Twitter until twenty twenty-two, isn't that right? Or
-twenty twenty-three. -That's right. At the time of that case, he
-had no connection to Twitter. -And counsel suggested that the Wachtell
Lipton firm was somehow involved in that lawsuit.
-They were not. You were not. -Was Wachtell Lipton involved in that
-lawsuit at all? -No.
So the suggestion that it was was inaccurate, correct?
-Correct. -Did any of all this have anything to do
-with the substance of your opinions? -No. I would be-- I am confident I would
give you the same opinions without regard to any of the things you just asked me
-about. -Nothing more. Thank you.
Professor, you are excused.
Let me see the, uh, lawyers at sidebar, please.
Not, not you. The primary lawyers.
Okay,
-next ones. -Uh, Your Honor, the OpenAI defendants call
Lewis Dudney.
Please remain standing and raise your right hand to be sworn, sir.
You solemnly swear or affirm that the testimony you're about to give before this
court and jury shall be the truth, the whole truth, and nothing but the truth, so
help you God, or so you affirm. Please say, "I do," or, "I affirm."
I do.
Thank you, sir.
Please be seated. Speak clearly into the microphone. Please state your full name
and spell out your last name for the record.
My name is Lewis Dudney, and my last name is spelled D-U-D-N-E-Y.
-Thank you, sir. -Good afternoon.
-You may proceed.
-Good afternoon, Mr. Dudney. -Good afternoon.
What do you do for a living?
Uh, I'm a forensic accountant.
And what does a forensic accountant do?
Forensic accountants study financial and accounting information, uh, to try and
help, uh, juries or courts understand, um, the implications of that in a litigated
case, most typically.
And how long have you worked as a forensic accountant, sir?
-37 years. -Uh, Mr. Dudney, I understand that you've
prepared a slide with some of your qualifications. Would it be helpful to put
-that on the screen? -Yes.
Okay.
And for the record, this is DDX10.
Mr. Dudney, do you hold any advanced degrees?
Yes, I have a BBA with a concentration in accounting.
-And where did you get that degree, sir? -From William & Mary.
Do you hold any certifications relevant to your work as a forensic accountant?
I do. I hold two. Uh, one is that I'm a licensed and certified public accountant,
and then I also am recognized by the American Institute of Certified Public
Accountants as certified in financial forensics.
Has a court ever qualified you as a forensic accounting expert, Mr. Dudney?
Many times.
H- how many times throughout your career have you been, um, offered testimony, uh,
financial testimony, in a case in which you applied forensic accounting
-principles? -Over 75 times.
Uh, were you retained by counsel for the OpenAI defendants in this case?
-Yes, I was. -And what was your assignment, Mr. Dudney,
at a, at a high level?
At a high level, it was to determine, um, when, uh, the various donations or
contributions that were claimed by Mr. Musk were made. It was to determine when
those donations were spent, uh, for the cash donations,
and then it was als- also to determine how, um, that money was used.
Uh, Mr. Dudney, did you bill for your time spent on that assignment?
-I did. -Uh, and what was the rate that you
-charged? -$1,475 per hour.
And is that your customary rate, Mr. Dudney?
It is.
Did you review any documents or other materials to help form the opinions you're
-prepared to offer today, sir? -A, a number of documents, yes.
Again, at a high level, recognizing that we're on a clock, uh, could you describe
-the kinds of documents you looked at? -Sure. I looked at tax returns. I looked at
bank statements. I looked at, uh, underlying accounting records, which are
referred to the, as the general ledger. I looked at contemporaneous correspondence.
I looked at agreements such as lease agreements, invoices, things of that
nature.
I see, and, and you mentioned the general ledger. That was the general ledger for
-which entity, sir? -It's for OpenAI.
-Yeah. The, the nonprofit? -Yes, OpenAI, Inc.
Um, are the opinions you're prepared to offer today,
uh, based on recognized principles of accounting?
-Yes. -And did you re- reliably a- apply those
-principles to form your opinion, sir? -Yes.
Okay. Uh, at this time, Your Honor, we would offer Mr. Dudney as an expert in
forensic accounting.
Is th- any objection?
-No objection, Your Honor. -He's admin.
Okay.
Um,
M- Mr. Dudney, you said that you reviewed Mr. Musk's financial contributions to the
-OpenAI nonprofit, correct? -Yes, I did.
Uh, according to your analysis, how, how much money did Mr. Musk contribute to
OpenAI, Inc?
Uh, approximately 37.799 million.
Uh, and I believe you've prepared a slide, which is already on the screen, uh, of,
of the categories of contributions you saw. Is, is that correct?
Yes. This slide is a summary of the, uh, contributions that I was able to identify.
And that's DDX11, correct?
-Correct. -Okay. Um, w- were the contributions that
Mr. Musk provided to OpenAI all of the same kind?
-No. -Um, what sorts of contributions did Mr.
Musk make to OpenAI, based on your analysis?
So I've grouped them on this slide into three categories. Um, the first category,
which represents $25 million worth of contributions,
is referred to here as, uh, quarterly contributions.
Um, the second category, which equals approximately 12.5 million, that, uh,
relates to, uh, what are described as rent-related contributions.
And then the third category is, um, $262,400 related to
four Tesla cars and an upgrade or some upgrades to one of those cars, and that's
an in-kind, um, uh, contribution, meaning non-cash.
Okay. Um, we can take that down. Thank you. I'd, I'd like to just talk in a
little bit more detail with you, Mr. Dudney, about the cash contributions.
Uh, and to do that, Your Honor, we'd like to, um, introduce into evidence DX1304.
It's a summary exhibit that's been stipulated.
-So moved. -Okay, I need to hand it up to Mr. Cuenco.
You may.
May I approach, Your Honor?
Thank you.
Okay. Uh, we can put that up, Your Honors.
Uh, Mr. Dudney, you've seen this exhibit before?
-Yes. -Okay. What, what does it show?
It shows the cash contributions, um,
demonstrating both the size of those contributions and the timing of those
contributions.
Um,
and it d- differentiates between the first two categories of contributions that were
made in cash that I just discussed a moment ago.
A- and just for the jury's benefit again, what, what are those two categories that
-are on this slide? -So the green bars to the left-hand side
that are significantly larger, those are the quarterly contributions, which equal
$25 million. And then the smaller, more frequent red bars at the bottom, those are
the rent-related monetary contributions that I identified.
And Mr. Dudney, if you could,
did your analysis, uh,
reveal an answer to the following question: Why, uh, are some of the green
bars larger than others?
Y-y-yes, it's simply a timing, um, uh, i-issue. And so you can see that, uh, if
you look at the bottom, uh, you'll see that some of the green bars are stacked on
little, little red bars, and in other cases they're not. And so that affects if
you look at the top, um, where the total funding, if you will, of both, uh, the
green bars and the red bars, um, would fall, uh, but it's just simply a
presentation, um, question.
Um, and, uh, focusing now on the red bars, how did you determine, sir, that the red
bars were all rent-related contributions?
So I looked at, um, a variety of documents, starting with the lease
agreement, um, that, uh, was signed. I looked at a sublease agreement related to
these payments. I looked at rent invoices. I looked at, um, cash contributions,
which from a timing perspective and an amount perspective were consistent with
the lease payments that were called for under the agreement. And then I also
looked at the payments that OpenAI made to the landlord to understand that there
was,
um, uh, a, a relationship, if you will, between all of these things, demonstrating
that the payments that OpenAI was making, um, were rent-related, and that these
contributions that are shown here were rent-related contributions.
Okay, thank you. We, we can take that down.
Uh, drilling down just one more layer, uh, Mr. Dudney, I'd like to talk briefly
about the quarterly donations in particular.
-Okay. -Um,
based on your analysis, where did OpenAI Inc. put Mr. Musk's quarterly donations?
In-into the business checking account that, uh, OpenAI had opened.
And did OpenAI Inc. maintain a separate checking account for Mr. Musk's donations?
No, not a separate one just for Mr. Musk's
donations.
Okay, and what other sorts of, uh, funds flo-flowed into that checking account?
So there were der-donations from other entities that went to that checking
account, and then that checking account also was the, uh, primary source for
payments that OpenAI made to pay various vendors and, uh, bills that it had to pay
in operating its business.
Now, Mr. Dudney, you, you testified earlier that part of your s-assignment was
figuring out when the nonprofit spent Mr. Musk's donations. Is that correct?
-Yes. -Okay. Did the fact that OpenAI Inc. put
all of Mr. Musk's donations into the same checking account as other donations affect
-that analysis in any way? -It did.
And, and how was that, sir?
So when monies from different sources are put into the same, uh, account, uh,
accountants will describe that as a, a commingling of funds. And so there were,
uh, monies from not just Mr. Musk, uh, but also from other donors that were put into
the same account, which is a normal practice, but it commingles the money from
that perspective. So that impacts then the, um, sort of analysis that, um, I
engage in.
And did you engage in any particular accounting analysis to sort through the
-commingling you just described? -I did.
And, and what was that analysis that you did?
So accountants refer to the type of analysis, uh, that I did as a FIFO
analysis, and that's an acronym. It's F-I-F-O, and it stands for first in, first
out.
Uh, and essentially what it means is that just like, um, if you stand in line at a
restaurant to get in, the first person in the line gets in first, the second person
gets in second, and so forth. And so it's a, um, way to consider the timing of when
the monies were, um, donated to OpenAI.
Okay, thank you, Mr. Dudney.
Um, why did you decide to use FIFO in this particular analysis?
So there were a couple of reasons. Uh, one is that I had detailed data,
transaction-level data with respect to OpenAI's funding,
its, um, expenditures,
and how the timing of all that related, uh, to one another in actuality. So that
was a, a first, um,
important determination because you need detailed data to do the analysis I did.
Second, i-it's because the periods, um, that I looked at primarily, which were and
, uh,
OpenAI was very much a startup company at that point. And so it didn't... In the
first day it didn't have any funding. And so it was clear as I looked at the data
that the company would go out, get some funding,
spend that, get some funding. As it got low, get some more, et cetera. And one
might use the analogy of it was, um, in the early days, living paycheck to
-paycheck in that regard. -A-and Mr. Dudney, I understand that you
created a slide to show the phenomenon you were just describing. Is that right?
-Yes. -Okay. It would be helpful to put that up.
-Please. -Okay, let's do that, please.
And this will be DDX-12.
-Um, what is this chart, Mr. Dudney? -So this is simply a line graph of the
balance of OpenAI's checking account.
And so it covers a two-year period from January 2016 through December 2017,
and on the left-hand side you can see the balance in millions of dollars, and it
just simply shows, um, how that balance, uh,
went up and then would go down in what I would call a sawtooth pattern, um, over
this two-year period.
A-and did this checking account, uh, or at least this representation of the balance
of the checking account, include all of the donations OpenAI received during this
-period? -All of the cash donations, yes.
In other words, just to be clear, not, not limited to Mr. Musk, correct?
C-correct. This would include donations by others during this time period as well.
And Mr. Dudney, when you looked at this chart, uh, and you were thinking about the
best way to do your analysis, did you draw any conclusions from what you
observed?
Yes. This,
this actual, um, funding, then spending, then funding, then spending pattern was
consistent with my use of a FIFO methodology for purposes of, um, analyzing
how, uh, Mr. Musk's donations were used.
Okay. Uh, we can take that down. Uh, Mr. Dudney, you also, uh, testified, uh, uh,
that ultimately you were asked to figure out when Mr. Musk's quarterly donations
-had been spent, correct? -That's correct.
Okay.
Um, based on your application of, of the FIFO analysis, were you able to isolate
the balance of Mr. Musk's quarterly contributions to OpenAI
-as distinct from donations from others? -Yes.
Okay. And again, we have a slide that you've prepared, correct, on that, on that
-subject, sir? -That's correct.
-Would it be helpful to put that up? -Please.
Great. Let's do that.
And this is DDX, uh, 13.1.
Uh, are you familiar with this chart, Mr. Dudney?
-Yes, I am. -And what does it depict?
This depicts the results of my FIFO analysis, um, as it relates to the use of
the Musk-related quarterly cash donations. And so this shows the balance of that
element of OpenAI's cash funding.
And Mr. Dudney, you'll see, um,
in June of 2016, the, the balance begins to increase, and I'm, I'm wondering if you
could focus your attention there and just to briefly explain to the jury w- what's
happening at that point in the chart.
So if, if we look at the bottom of the chart and we just start looking from left
to right, you'll see that, um, the line, the blue line or the, the main line is
zero until it hits roughly June of 2016. Then there's a small little stairstep
there, and that is the, um, recognition of the first contribution that is made, uh,
related to Mr. Musk for $500,000.
Then you'll see another stairstep, um, take you up to about $5.5 million,
um, and that, uh, is recognition of the second, uh, significant quarterly
contribution that was made of, um, $5 million.
And, and then Mr. Dudney, what, what happened after that, uh, over the next
several months in 2016?
So what happens then is you see a stairstep going down, um, and I'll try
and, uh, use the telus- oh, there it is. Um, you'll see that, uh, where the red
line was just superimposed, that, that shows the usage of that, um, funding that
was provided by Mr. Musk based on my application of a FIFO analysis. And so you
see funding, and then you see usage of that funding and, uh, that you see that
-pattern then repeating itself over time. -And Mr. Dudney, if I could now focus you
on the period around May of 2017, uh, May to July of 2017. Again, briefly, could you
explain to the jury what you observed based on your analysis in that time
period?
So from May to July of 2017, you'll see the line goes to zero,
and the reason that it goes to zero during that period is because all of the
previous funding that Mr. Musk had provided, um, had been used. And so what's
happening during that period is OpenAI is funding itself with the, um, most recent
funding that it had received from another donor other than Mr. Musk, and that's why
they were able to operate in that window, for example, despite not having
Musk-related money.
A- and then the, the line changes again in July 2017, correct?
-Correct. -A- and, and what, what is happening at
-that point, Mr. Dudney? -M- Mr. Musk makes what is his last, um,
quarterly contribution for $5 million.
Uh, thank you. Um, and then from that point, uh, Mr. Dudney, over the next
several months, the line is, is flat.
-Am I reading this correctly? -Yes.
-And can you explain why that is, sir? -Uh, essentially, Mr. Musk's money is
waiting in line, if you will, until the previously donated money is used, um, for
purposes of my analysis. So you'll see that that $5 million balance reflects that
concept of, um, Mr. Musk's money waiting in line until, um, the just-previous
donor's money is, uh, used up.
Okay, thank you very much. And my apologies for honor mic.
My apologies.
Uh, and then, um, what happens after that, Mr. Dudney?
So you see then a very, uh, steep decline,
um, taking place after that, uh, flat area that is, um, highlighted with the red
arrow, and that steep decline is, again, just simply the usage of Mr. Musk's, um,
last donation
by OpenAI. And the reason that it's so steep is because OpenAI is spending more
month to month. Uh, and so it eats through that funding quite quickly.
And Mr. Dudney, to sort of land the plane here, um, based on your forensic
accounting analysis and application of FIFO, when did you determine that OpenAI,
Inc., uh, completed spending Mr. Musk's final quarterly donation?
November of 2017.
And we can take that down.
Thank you. Just a few final questions, Mr. Dudney. Uh, you also explained that you
were asked to analyze the manner in which the nonprofit spent Mr. Musk's, uh,
to analyze the manner in which the nonprofit spent Mr. Musk's, uh, quarterly
-donations. Is that correct? -Yes.
Okay. And how did you go about doing that work, Mr. Dudney?
So in part, it was, um, having looked at all of the detailed transactions that, uh,
made up the analysis that was just described. I also looked at then
financial statement information to understand how the company itself, OpenAI,
categorized all the detailed transactions that I had been analyzing.
See, and did you look at anything other than the financial statements to do that
-analysis? -I looked at the financial statements and
the, um, underlying transactions as well.
And when you looked at those, uh, financial records, Mr. Dudney, what did
you observe?
Uh, I observed that, um, there were several primary categories, if you will,
of how the money was spent, um, by OpenAI.
And from an accounting perspective, were those expenses categorized in any way?
Th- they're, as, with respect to a, um, a nonprofit, they're called functional
expenses.And that's just, um, accounting terminology to describe, um,
expenses related to the business conduct, if you will, of the, um, not-for-profit.
And, and again, just in, in
summary form, Mr. Dudney, what were the categories of, of functional or operating
expenses that you saw OpenAI,
-uh, using its funds on in 2016 and 2017? -So the primary categories were, um,
compute, which has been talked about as, um, other witnesses have been mentioning.
Uh, it was salaries and compensation. It was for professional fees and related
sorts of expenses like that.
Uh, thank you, Mr. Dudney. No further questions. Thank you, Your Honor. Thank
-you. -Thank you.
Cross by plaintiffs.
Good afternoon, Mr. Dudney. Walter Haas for the plaintiff.
Good afternoon, Mr. Haas.
Um, Mr. Dudney, you testified that 37 million and roughly 800,000 of Mr. Musk's
claimed contributions,
uh, were in fact received by OpenAI, correct?
That's correct.
And those funds were important to OpenAI successfully running its business,
correct?
Uh, they were certainly a significant portion of the early funding of his
-business. -Okay. And you testified about how those
funds were spent.
-Yes. -And OpenAI spent those funds on salaries
for the engineers and other employees.
-Yes. -And it also spent those funds on the
compute that it used to develop its AI software, right?
That's correct.
Now, that software, that intellectual property, was a valuable asset for the
nonprofit, right?
I, I, I can't comment on to what extent there was intellectual property that was
developed at that point in time.
Okay. And the nonprofit later transferred that software that it developed with Mr.
-Musk's funds to the for-profit- -Objection. Beyond the scope.
I'll withdraw the question, Your Honor.
Mr. Dudney, you testified that OpenAI commingled Mr. Musk's donations with other
-donations, correct? -That's correct.
And because OpenAI commingled his donations in a single account, you can't
actually determine with specificity and certainty when Elon's contributions were
spent versus the contributions from the other donors, correct?
You can't, um,
specifically tie specific dollars. You have to apply one of the forensic
accounting techniques that, uh, I talk about.
Thank you. So that, that's a yes, right? That you can't determine with certainty
what Elon's contributions were spent on, correct?
Not specific, um, expenses. You have to, as I said, apply the approach that I did.
Thank you. And you used a method called FIFO, right? First in, first out.
That's correct.
And
that's what you call a financial tracing method, isn't it?
-Yes. -All right. And there are numerous other
financial tracing methods that exist, right?
That's correct.
Now, FIFO, the one you used, assumes that the first money into an account is the
first money out of the account, correct?
-That's correct. -But another financial tracing method is
last in, first out, or LIFO. Are you familiar with that?
I am.
And under the LIFO method, one assumes that the last money in is the first money
-out, right? -That's correct.
Okay.
And both of those are commonly used financial tracing methods, right?
-They're both well-known, yes. -Thank you. And if you applied LIFO here,
you would not have gotten the same result regarding when Mr. Musk's contributions
were spent, would you?
A- as a matter of just mathematic application of it, the answer is no.
-Thank you. -I don't think it's the right one, but no,
-you would not. -And under the LIFO method, if that's what
you applied here,
you would conclude that OpenAI would not have spent the 25 million that you
analyzed until sometime after November '17, right?
You would have concluded that OpenAI did not spend the 25 million that you analyzed
until sometime after November 2017, correct?
Well, I wouldn't apply LIFO, but, um, if one did apply LIFO,
it would give you a different answer, and it would be later in time than what I
-concluded. -Thank you.
Now, your FIFO analysis that you did perform, you focused on only the 25
million that you call the quarterly contributions, right?
-That's correct. -And your analysis, therefore, didn't
analyze the more than 12 million that Mr. Musk contributed in rent, right?
Not using, um, FIFO. I used a different approach with respect to the, um, rents
-because of the data available. -Correct. So your, your FIFO analysis did
not include that amount.
That's correct. The FIFO analysis was with respect to the 25 million of quarterly
-contributions. -And if you had included the other amounts
that you did not include, you would have come to the conclusion that the
contributions were not spent until sometime after September 2020. Isn't that
right?
I'm not sure I understand your question because, um,
I did do an analysis of the rent-related payments, and I drew conclusions as to
when those, um, took place from a time period perspective. So I, I, I wouldn't
have included them in a FIFO analysis given the data that I had.
I, I understand that you did not include them in the FIFO analysis. My question is,
if you had included the rent-related contributions-
-Sure -... in the FIFO analysis, your conclusion
under that analysis would, that Mr. -- would be that Mr. Musk's contributions had
not been spent until sometime after September '20.
-Just mathematically, that's correct. -Thank you. No further... Or
cross-intelligence.
No further questions. Thank you, Mr. Dudney.
Thank you.
-Okay. Anything from Microsoft? -Nothing from Microsoft, no.
Your Honor, 60 seconds, if I may.
I'll give you 60. You're already over.
Thank you, Your Honor. M-Mr. Dudding, very briefly, why did you not use the LIFO
methodology?
Well, it, it... I concluded that it was a inappropriate methodology given the
pattern that one can easily see that was, in actuality, taking place. It... This was
a startup company. It would fund itself, um, make payments with that funding, then
seek additional funding, and that is a first in, first out, um,
demonstration if I've ever seen it. And so that, uh, was very impactful to my
determination, was, uh, the nature of the company and seeing its actual
-transactional activity. -And based on your 37 years of experience
as a forensic accountant, do you have any doubt that FIFO was the appropriate
-methodology here? -N-none whatsoever.
Nothing further, Your Honor. Thank you.
Anything on that?
-Nothing further, Your Honor. Thank you. -Okay.
Nothing from Microsoft? Nothing from Microsoft, Your Honor. Thank you. All
-right. Mr. Dudding, you're excused. -Thank you, Your Honor.
Uh, OpenAI rest.
Yes, Your
-Honor. -Microsoft. Yes, Your Honor.
No rebuttal case?
All right.
No, Your Honor.
Members of the jury, that concludes the evidentiary portion-
[clears throat] ... of the trial. So tomorrow,
uh,
I will give you, uh, instructions,
and then you will get arguments.
Uh, I will remind you tomorrow that,
uh, I don't know, way at the beginning of all of this when we were together, I
remember I used that puzzle
analogy.
All the pieces of the puzzle are now in the box,
and tomorrow, the attorneys are gonna make arguments again to you
to explain to you what they now believe that box shows. Ultimately,
you'll go into that jury room, and you'll take all that evidence, all those puzzle
pieces,
and you'll figure it out for yourself.
Okay?
Any questions?
No?
All right. A few smiles. I see some smiles. That's good.
And we'll stand in recess with the jury until eight thirty tomorrow morning.
Please rise for the jury.
Okay.
The record will reflect that the jury has
left.
We have some cleanup things to do, so let's go ahead and do those now.
Mr. Cry, you wanna start? Oh, wait, before you start, Mr. Knitt.
My apologies for confusing you with your colleague. You were not on my list.
-Oh. -And you are both about the same height,
-same... -I, I'll take that as a compliment. Walter
-might be a little offended. -All right. Good enough.
Good.
Um, okay.
-Mr. Cry. -Your Honor, the only, uh, small item we
had left was, uh, just to, uh, communicate to the court the parties' plan for
handling the, uh, excerpt transcripts for the various videos that were played at
trial.
Following discussions with the court reporter, the plan is to, uh, submit,
um, copies of the clip reports, which will be stamped as trial exhibits,
and then our understanding is that, uh, those will not go back to the jury room
absent further order of the court. [clears throat]
We've been asked that there's no need to, um, indicate that they've been marked for
-identification only. -Okay. Everybody agreed?
-Uh, yes, Your Honor. -Yes, Your Honor.
Okay.
Uh, all right. What else
do you want to do today
so that I can release you to go work on closings?
Uh,
Your
Honor, my colleagues asked me to confirm the duration of time we will have for
-closing arguments tomorrow. -Uh, you all, um, have
plenty of time. So, uh,
w-
because I, um...
I mean, it's over two hours for both plaintiffs and defense.
Uh, that is the OpenAI defendants. And then, um,
O- uh, Microsoft had said
forty-one, and
if you need a little bit more time, I don't think you used all your allocation.
So I, I think you all have plenty of time.
I can send you the final number if you want by email.
Thank you. Thank you, Your Honor. I think we have a pretty good idea based on that.
-Okay. Anything, Mr. Cry? -Nothing else from plaintiff, Your Honor.
Thank you.
-Uh, nothing from the OpenAI defendants. -Nothing from Microsoft. Thank you.
Okay. Then we will see you tomorrow, and we'll stand in recess until eight AM.
Thank you.
Court is in recess.
-Should probably just leave our stuff. -Yep, yeah.
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