Elon Musk dropped his fraud claims against OpenAI and co-founders Sam Altman and Greg Brockman, narrowing the scope of his lawsuit against his business rivals on the eve of trial.
US District Judge Yvonne Gonzalez Rogers on Friday agreed to Musk’s request to “streamline” the case, leaving just two claims to proceed to trial of the 26 included in his November 2024 complaint.
Jury selection is set for Monday in federal court in Oakland, California. Musk alleges the artificial intelligence startup abandoned its founding mission as a nonprofit to benefit humanity when it took billions of dollars in backing from Microsoft Corp. and planned its restructuring as a for-profit business.
Musk is seeking as much as $134 billion in damages that he has asked be directed to OpenAI’s charitable arm, if he wins at trial. He also wants a court order restoring the firm’s status as a nonprofit research organization and wants a judge to order that Altman and Brockman both be removed from their roles at OpenAI. Altman is chief executive officer and Brockman serves as president.
Read More: OpenAI Accuses Musk of ‘Ambush’ as $100 Billion-Plus Trial Looms
OpenAI complained to the judge two weeks ago that the remedies proposed by Musk were an 11th-hour surprise and accused the world’s richest person of a “legal ambush” with the trial looming.
OpenAI, Altman, Brockman and Microsoft have all denied wrongdoing, saying Musk’s claims are baseless harassment.
The trial will be divided into two phases. During the first portion, a jury will hear arguments and testimony about Musk’s allegations, which now focus on two claims — unjust enrichment and breach of charitable trust.
The panel will issue an “advisory verdict” that will not be binding on Gonzalez Rogers, who will ultimately decide whether Musk proved his claims.
In the second part of the proceedings, Gonzalez Rogers will hear arguments on the remedies Musk is seeking and issue a ruling.
Musk co-founded OpenAI with Altman and others in 2015, but the former business partners have become bitter foes in recent years. Musk left OpenAI’s board in 2018 and in 2023 co-founded the artificial intelligence company xAI, which has become one of OpenAI’s main rivals.
Last February, OpenAI rejected Musk’s unsolicited bid to acquire the assets of the nonprofit that controls the company for $97.4 billion. Months later, the company completed its for-profit restructuring plan, paving the way for it to raise more capital and potentially go public.
The case is Musk v. Altman, 4:24-cv-04722, US District Court, Northern District of California (Oakland).
