Friday, January 9, 2026

Judge Signals Elon Musk’s Fraud Lawsuit Against OpenAI Will Proceed to Trial

A federal judge has ruled that a jury will decide if OpenAI misled co-founder Elon Musk during the company’s transformation from a nonprofit to a for-profit entity worth $500 billion. U.S. District Judge Yvonne Gonzalez Rogers indicated her intent to dismiss OpenAI’s motion to terminate Musk’s lawsuit, emphasizing that the case will go to trial. Key details include Musk’s $40 million investment and his concerns over OpenAI’s shift in mission, which he believes strayed from benefiting humanity. The judge noted sufficient evidence for a jury, referencing a diary entry from OpenAI’s Greg Brockman contemplating a profit model. The case will also examine allegations against Microsoft regarding unjust enrichment, as they hold a $135 billion stake in OpenAI. Scheduled for trial logistics remain pending, with significant implications for Musk, whose rival xAI is valued at $230 billion, and OpenAI CEO Sam Altman. The outcomes may redefine trust in AI enterprise evolution.

Source link

Share

Read more

Local News