US judge dismisses Elon Musk's fraud claims against OpenAI

A US judge has dismissed Elon Musk's fraud claims in his lawsuit against OpenAI and its CEO Sam Altman. The case will proceed to trial on allegations of breach of charitable trust and unjust enrichment. Jury selection is set to begin on Monday, with opening arguments to follow on Tuesday.

Elon Musk, co-founder of OpenAI, filed the lawsuit accusing the organization and Sam Altman of abandoning its original nonprofit mission. A US judge ruled in favor of dismissing the fraud claims but allowed the remaining counts to advance. Musk is seeking $150 billion in damages from OpenAI's charitable arm, as reported by The Economic Times. Jury selection for the trial starts Monday, followed by opening arguments on Tuesday. The dispute centers on OpenAI's shift from its initial commitment to develop artificial general intelligence for public benefit toward a for-profit model. OpenAI has defended its structure, stating it aligns with advancing AI safely. No further details on the judge's reasoning were provided in the ruling, but the decision narrows the scope ahead of the trial.

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Courtroom illustration depicting jury selection in Elon Musk v. OpenAI trial in Oakland federal court.
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Jury selected in Musk v. Altman trial in Oakland court

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A jury was selected on Monday in federal court in Oakland, California, for Elon Musk's lawsuit against OpenAI and Sam Altman. Some jurors expressed concerns about Musk and AI technology but assured the court they could remain impartial. The trial centers on allegations that OpenAI abandoned its nonprofit mission.

A federal jury ruled Monday that Elon Musk waited too long to sue OpenAI and its leaders. The decision ended the high-profile case after three weeks of testimony.

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Elon Musk testified for three days as the first witness in his lawsuit against OpenAI, facing tough cross-examination that highlighted inconsistencies and concessions. The trial, ongoing in federal court, centers on Musk's claims that OpenAI abandoned its nonprofit mission. OpenAI lawyers portrayed Musk as jealous and dishonest, damaging his credibility before the jury.

OpenAI is facing an investigation by a coalition of state attorneys general after receiving a subpoena on June 12 seeking documents on its operations and user impact.

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Florida filed the first state lawsuit against OpenAI and CEO Sam Altman on Monday, alleging the company prioritized profits over user safety in designing ChatGPT.

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