Elon Musk, Tesla’s CEO, has withdrawn fraud claims against OpenAI and its co-founders, Sam Altman and Greg Brockman, reducing the lawsuit’s scope before trial. The US court judge, Yvonne Gonzalez Rogers, has permitted Musk to streamline the case, leaving only two claims – unjust enrichment and breach of charitable trust – from the initial 26. Jury selection is set to commence on Monday in an Oakland, California federal court.
Musk’s allegations suggest that OpenAI strayed from its original non-profit mission, aimed at benefiting humanity, after receiving substantial funding from Microsoft and transitioning to a for-profit model. He is pursuing damages of up to $134 billion, proposing that the amount be directed to OpenAI’s charitable arm if successful. Musk has also urged the court to reinstate the organization’s non-profit status and remove Altman and Brockman from their leadership positions.
OpenAI, along with Altman, Brockman, and Microsoft, has refuted Musk’s claims, labeling them as groundless and accusing Musk of introducing last-minute demands before the trial. The trial will progress in two phases, with the jury initially considering the remaining claims and providing a non-binding advisory verdict. Subsequently, the judge will rule on the remedies sought by Musk.
Musk co-founded OpenAI in 2015 but resigned from its Board in 2018. He later launched xAI, a competing AI firm in 2023, heightening competition in the evolving Artificial Intelligence sector. In a previous legal move in April, Musk aimed to oust Altman and Brockman as part of his challenge to OpenAI’s transition to a for-profit structure, aiming to revert the organization to its original non-profit research status.
