**Elon Musk’s Lawsuit Against OpenAI: Key Claims Narrowed by Judge**
A judge has refined the claims in Elon Musk’s lawsuit, which accuses OpenAI of failing to uphold its commitment as a public charity while planning to transition into a for-profit entity. On Thursday, US District Judge Yvonne Gonzalez Rogers, based in Oakland, California, ruled that Musk, the world’s wealthiest individual, can pursue fraud allegations in his complaint against OpenAI, filed last year. The judge also allowed an unjust enrichment claim against both OpenAI and Microsoft Corp., a significant investor in the startup, to proceed. However, she dismissed claims related to false advertising and breach of fiduciary duty against OpenAI.
Both OpenAI and Microsoft successfully had Musk’s racketeering claims dismissed, but the judge provided Musk with the opportunity to amend this allegation in a revised complaint. In a response to media inquiries, an OpenAI spokesperson referenced a social media post from the previous month, suggesting that Musk’s actions represent an unlawful attempt to hinder the company’s growth for the benefit of his competing startup, xAI, which he launched in 2023. Neither Musk’s attorney nor representatives from Microsoft immediately responded to requests for comments.
The ongoing legal dispute between Musk and Sam Altman, who co-founded OpenAI with Musk a decade ago, coincides with the startup’s discussions with officials in Delaware and California regarding its restructuring plans. OpenAI is under pressure to finalize these changes by the end of 2025; otherwise, SoftBank Group may reduce its funding commitment from $30 billion to $20 billion, as reported by Bloomberg. OpenAI would then have the option to seek alternative investors.
Judge Gonzalez Rogers previously indicated her intention to limit the claims in the lawsuit when she scheduled a trial for March. Musk has alleged that the partnership between OpenAI and Microsoft, formed after he departed from the startup’s board in 2018, aims to monopolize the generative AI sector, potentially stifling competition. His legal team contends that Microsoft was aware of a scheme involving OpenAI co-founders Altman and Greg Brockman to defraud Musk of his significant contributions for their own enrichment.
While Gonzalez Rogers granted OpenAI and Microsoft’s request to dismiss Musk’s claims of aiding in the fraud, she ruled that Microsoft must address allegations of interfering with Musk’s contract with OpenAI, which he asserts was intended to ensure the technology served the public good. The judge noted that Musk has “plausibly alleged” that Microsoft was aware of the charitable trust and took actions that constituted “substantial assistance or encouragement” in violating the contract.
**FAQ**
**What are the main claims in Elon Musk’s lawsuit against OpenAI?**
Elon Musk’s lawsuit against OpenAI includes claims of fraud and unjust enrichment, while allegations of false advertising and breach of fiduciary duty have been dismissed. The case also involves claims against Microsoft for interfering with Musk’s contract with OpenAI.
