US judge drops Elon Musk fraud claims against OpenAI, trial to continue

A US judge dismissed Elon Musk's fraud claims against OpenAI and Sam Altman but allowed charitable trust and unjust enrichment claims to proceed to trial. The ruling narrows the case ahead of jury selection while keeping Musk's challenge to OpenAI's mission at the centre.

In Short

• Judge Yvonne Gonzalez Rogers issued the ruling in Oakland, California
• Jury selection is set for Monday, with opening arguments expected Tuesday
• Musk said narrowing claims would keep jurors focused on OpenAI's mission

A US judge on Friday dismissed Elon Musk's fraud claims in his lawsuit accusing OpenAI and co-founder Sam Altman of betraying OpenAI's original mission, but plans to proceed to trial on Musk's breach of charitable trust and unjust enrichment claims.

The ruling was issued by U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California.

Jury selection is scheduled to begin on Monday, and opening arguments are expected on Tuesday.

Musk had said dismissing his fraud and constructive fraud claims, which he proposed, would streamline the case and keep jurors focused on his goal of ensuring that OpenAI benefit humanity rather than be a "wealth machine."

The case centres on Musk’s claim that OpenAI, Altman and Microsoft MSFT.O, one of OpenAI's largest investors, conned him and the public by forming a for-profit entity in 2019, after he left OpenAI's board.

OpenAI is preparing for a potential initial public offering that could value it at $1 trillion, Reuters has reported.

Musk is seeking $150 billion in damages, according to a person involved in the case, with proceeds going to OpenAI’s charitable arm.

- Ends