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

U.S. District Judge Yvonne Gonzalez Rogers indicated that Elon Musk’s fraud lawsuit against OpenAI will likely go to trial, rejecting OpenAI’s motion to dismiss the case. The lawsuit centers on Musk’s claim that OpenAI, initially founded as a nonprofit AI research lab dedicated to benefiting humanity, was improperly converted into a for-profit entity. Musk alleges he was misled during this transition, contributing $40 million and Tesla vehicles based on the initial nonprofit commitment.

The judge stated there is sufficient evidence for a jury to assess the credibility of Musk and OpenAI CEO Sam Altman, both of whom would likely testify. A key issue is determining when the alleged fraud occurred, as there is a three-year statute of limitations on fraud claims. The judge plans to allow the jury to first decide the timing of the alleged deceit.

Evidence presented includes a 2017 diary entry from OpenAI executive Greg Brockman expressing a desire to transition to a for-profit model. The case also highlights OpenAI’s internal conflicts, including a brief 2023 attempt by the board to remove Altman as CEO, which was later reversed with Microsoft’s assistance.

(Source：Khou)