New Delhi, April 25: Tesla CEO Elon Musk has withdrawn fraud allegations against OpenAI and its co-founders, Sam Altman and Greg Brockman, limiting the scope of his lawsuit ahead of the trial.
Reports indicate that U.S. District Judge Yvonne Gonzalez Rogers has permitted Musk to narrow the case, leaving only two claims—unjust enrichment and breach of charitable trust—out of the original 26 allegations set for trial in November 2024.
Jury selection for this case will commence on Monday at the federal court in Oakland, California.
Musk alleges that OpenAI has strayed from its initial non-profit mission. He claims the company transformed into a profit-driven entity after securing billions in funding from Microsoft.
He is seeking damages of up to $134 billion, asserting that if he wins, the funds should be directed to OpenAI’s charitable branch.
Additionally, Musk has requested the court to revert OpenAI back to a non-profit organization and to remove Sam Altman and Greg Brockman from their positions.
However, OpenAI, its officials, and Microsoft have denied all allegations, stating that Musk is introducing new demands before the trial.
The trial will unfold in two phases. The first phase will involve the jury hearing arguments from both sides and issuing a non-binding advisory verdict. The second phase will see the judge decide on the actions regarding Musk’s demands.
Musk co-founded OpenAI in 2015 but stepped down from its board in 2018. He later launched his AI company, xAI, in 2023, intensifying competition in the AI sector.
Earlier in April, Musk sought to remove Altman and Brockman as part of his legal challenge against OpenAI’s transition to a profit-making entity. According to reports, a petition filed in court stated that Musk’s lawsuit aims to reverse OpenAI’s restructuring and restore it as a non-profit research organization.
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