Judge dismisses Musk's fraud claims against OpenAI, trial continues on other allegations
Updated
Updated · Reuters · Apr 24
Judge dismisses Musk's fraud claims against OpenAI, trial continues on other allegations
13 articles · Updated · Reuters · Apr 24
US District Judge Yvonne Gonzalez Rogers in Oakland dismissed Elon Musk's fraud claims at his request, with jury selection set for Monday and opening arguments on Tuesday.
The trial will proceed on Musk's breach of charitable trust and unjust enrichment claims against OpenAI, co-founder Sam Altman, and major investor Microsoft, focusing on OpenAI's alleged shift from its original mission.
Musk seeks $150 billion in damages to benefit OpenAI’s charitable arm, amid reports of a potential OpenAI IPO valued at $1 trillion and ongoing debate over the company's nonprofit commitments.
With billions burned monthly, can OpenAI survive this lawsuit long enough to become profitable?
Did Musk propose merging OpenAI with Tesla before suing it for being for-profit?
What did OpenAI's chief scientist allege about Sam Altman's 'consistent pattern' of lying?
Could a 'handshake deal' dismantle an $852 billion AI empire?
If its own AI tried to disable safety checks, what is OpenAI hiding now?
The $150 Billion Musk vs. OpenAI Trial: Breach of Trust and the Battle Over AI’s Mission
Overview
The legal battle between Elon Musk and OpenAI begins on April 27, 2026, focusing on whether OpenAI breached its nonprofit mission by shifting to a capped-profit model after a $1 billion Microsoft investment in 2019. Musk, who co-founded OpenAI and donated $38 million, alleges this change misused charitable assets and seeks $134-150 billion in damages plus structural remedies, including reverting OpenAI to nonprofit status and removing CEO Sam Altman. The trial’s outcome will determine liability first, with potential consequences threatening OpenAI’s planned IPO. OpenAI and Microsoft deny the claims, while the judge has expressed skepticism about Musk’s punitive damages request.