Elon Musk Drops Key Claims In OpenAI Case Days Before Trial

Tesla CEO Elon Musk has revised his legal battle against OpenAI and its leadership, dropping several accusations just days before the case is set to go to trial in the United States.

A federal judge, Yvonne Gonzalez Rogers, has permitted the Tesla chief to narrow his lawsuit significantly. Of the 26 allegations filed in November 2024, the court will now examine only two claims, unjust enrichment and breach of charitable trust.

The proceedings will likely begin with jury selection on Monday at a federal court in Oakland, California.

Musk’s case centres on claims that OpenAI moved away from its original non-profit purpose of advancing artificial intelligence for public benefit. He argues that the organisation shifted direction after receiving substantial financial backing from Microsoft and adopting a profit-driven structure.

The Tesla CEO seeks damages of up to $134 billion and states that the court should allocate any awarded amount to OpenAI’s charitable entity.

In addition, Musk has asked the court to reinstate the organisation’s non-profit framework. He has also sought the removal of its current leaders, Sam Altman and Greg Brockman.

OpenAI and the individuals named in the case have rejected the claims, describing them as unfounded. They have also criticised Musk for introducing changes to his demands shortly before the trial.

The legal process will unfold in two stages. Initially, a jury will review the remaining claims and provide an advisory opinion. After this, the judge will decide whether to grant any remedies.

Musk helped establish OpenAI in 2015 and left its board in 2018. He later re-entered the artificial intelligence sector by launching xAI in 2023. This move placed him in direct competition with his former venture.

Earlier this month, Musk reiterated his opposition to OpenAI’s structural changes in court filings. He sought to reverse its transition and restore its original non-profit status.

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