Judge clears fraud claims in Musk vs OpenAI

A U.S. judge has dismissed fraud claims brought by Elon Musk against OpenAI, clearing the way for a closely watched trial to proceed on other key allegations.

The ruling, issued by District Judge Yvonne Gonzalez Rogers in California, comes after Musk himself requested that the fraud-related claims be dropped in order to streamline the case, News.Az reports, citing Reuters.

The lawsuit will now move forward on claims including breach of charitable trust and unjust enrichment, with jury selection set to begin imminently and opening arguments expected shortly after.

Musk argues that OpenAI and its CEO Sam Altman, along with major backer Microsoft, shifted away from the organization’s original mission of benefiting humanity when it transitioned toward a for-profit structure in 2019.

By removing the fraud claims, Musk aims to keep the case focused on whether OpenAI’s evolution undermined its founding principles and public commitments. He has previously said his goal is to ensure the organization serves the broader public interest rather than becoming what he describes as a profit-driven enterprise.

The stakes are enormous. Musk is reportedly seeking damages of up to $150 billion, with any potential payout directed to OpenAI’s charitable arm.

The case also unfolds at a critical moment for OpenAI, which has been exploring the possibility of a future public offering that could value the company at as much as $1 trillion.

As the trial begins, the outcome could have far-reaching implications—not just for the companies involved, but for how AI organizations balance commercial growth with their original missions.

News.Az 

By Aysel Mammadzada