Elon Musk Narrows Lawsuit Against OpenAI and Sam Altman Ahead of Trial

Elon Musk has streamlined his legal case against OpenAI, dropping fraud allegations against the company and its co-founders Sam Altman and Greg Brockman. The remaining claims center on unjust enrichment and breach of charitable trust, with the trial set to start with jury selection on Monday in federal court in Oakland, California.

Musk seeks up to $134 billion in damages to be directed to OpenAI’s charitable arm and aims to restore the firm’s nonprofit status while removing Altman and Brockman from their leadership roles. The lawsuit stems from Musk's assertion that OpenAI abandoned its original nonprofit mission to benefit humanity after accepting billions in funding from Microsoft and restructuring as a for-profit entity.

OpenAI, Altman, Brockman, and Microsoft have denied the allegations, describing them as baseless. The proceedings will occur in two phases: a jury will provide an advisory verdict on the claims, followed by a judicial decision on remedies.

Musk co-founded OpenAI with Altman and others in 2015 but left the board in 2018. He later founded xAI in 2023, positioning it as a rival to OpenAI. In February, OpenAI rejected Musk's $97.4 billion bid to acquire its nonprofit assets. Court filings have revealed internal documents, including a 2017 diary entry from Brockman expressing concerns about Musk's leadership.

The entry stated Brockman viewed the situation as the only chance to separate from Musk and questioned if he was the ideal leader.

“This is the only chance we have to get out from Elon," wrote Greg Brockman, OpenAI’s president and a co-founder, in the autumn of 2017.”

In a separate development, Sam Altman issued an apology to the community of Tumbler Ridge, Canada, following a January mass shooting that killed eight people. OpenAI identified an account linked to the suspect through abuse-detection efforts but determined it did not meet the threshold for referral to law enforcement at the time.

Altman expressed deep condolences in a letter posted on Friday, stating he was deeply sorry for the company's failure to alert authorities.

“I am deeply sorry that his company failed to alert law enforcement about the suspect in a recent mass shooting.”

Meanwhile, Qualcomm shares rose nearly 8% on Monday after reports of a partnership with OpenAI to develop an AI smartphone. Mass production is slated for 2028, with specifications finalized by late 2026 or early 2027. This follows Altman's discussions with Jony Ive on AI companions, though those plans reportedly avoided smartphones.

Qualcomm faces supply shortages, with its stock hitting a 12-month low earlier this month. The company anticipates reporting second-quarter earnings on Wednesday. Recent security concerns also emerged after an attack on Altman's home and OpenAI offices, prompting renewed focus on corporate protection spending in San Francisco.

Altman has been working to streamline OpenAI's projects and enhance revenue strategies amid criticism of the company's direction.