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

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Judge indicates Elon Musk's fraud lawsuit against OpenAI will head to trial

A federal judge has indicated that a jury will determine whether OpenAI misled its co-founder, Elon Musk, during its transition from a nonprofit to a $500 billion company. U.S. District Judge Yvonne Gonzalez Rogers signaled her intent to deny OpenAI’s motion to dismiss Musk’s lawsuit, emphasizing, “This case is going to trial.” The lawsuit raises claims of unjust enrichment against Microsoft, which has invested heavily in OpenAI. Musk, who contributed $40 million to OpenAI, alleged a fallout with CEO Sam Altman over the company’s shift to profit-driven motives. Evidence, including a diary entry by OpenAI executive Greg Brockman expressing the desire to seek profit, supports Musk’s claims. The judge stated that determining when the alleged fraud took place will be crucial since it falls under a three-year statute of limitations. A trial date remains unclear, but both billionaires may testify under oath.

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