Elon Musk Narrows Lawsuit Against OpenAI and Founders Ahead of Trial

Elon Musk has narrowed his lawsuit against OpenAI and its co-founders Sam Altman and Greg Brockman by dropping fraud claims, leaving two claims for trial. The remaining claims focus on unjust enrichment and breach of charitable trust. Musk alleges that OpenAI deviated from its original nonprofit mission to benefit humanity after accepting billions in funding from Microsoft Corp.

and restructuring as a for-profit entity.

S. district judge approved Musk's request to streamline the case on Friday, ahead of jury selection set for Monday in Oakland, California federal court. The original complaint, filed in November 2024, included 26 claims. Musk seeks up to $134 billion in damages, to be directed to OpenAI's charitable arm if he prevails.

He also requests a court order to restore OpenAI's nonprofit status and remove Altman as chief executive officer and Brockman as president.

OpenAI, Altman, Brockman, and Microsoft have denied the allegations, stating that Musk's claims lack merit. Two weeks ago, OpenAI informed the court that Musk's proposed remedies were introduced late. The trial will proceed in two phases: a jury will provide an advisory verdict on the claims, followed by the judge's decision on remedies.

Musk co-founded OpenAI with Altman and others in 2015 but left the board in 2018. In 2023, he founded xAI, a rival artificial intelligence company.

Months later, OpenAI completed its for-profit restructuring to facilitate capital raising and a potential public offering. The case is identified as Musk v. Altman, 4:24-cv-04722, in the U.S. District Court for the Northern District of California in Oakland.