Musk has dropped fraud claims against OpenAI and its co-founders Newspoint  |  2026-04-25 20:40:09


Musk has dropped fraud claims against OpenAI and its co-founders
25 Apr 2026


Elon Musk has dropped his fraud claims against OpenAI and its co-founders Sam Altman and Greg Brockman.


The move comes just before the trial is set to begin, with jury selection scheduled for Monday in Oakland, California.


The decision narrows the scope of Musk's lawsuit from 26 claims to just two: unjust enrichment and breach of charitable trust.


Musk alleges deviation from OpenAI's original mission
Lawsuit


Musk's lawsuit alleges that OpenAI has strayed from its original mission as a nonprofit organization dedicated to benefiting humanity.


He claims this shift occurred when the company accepted billions in funding from Microsoft and transitioned into a for-profit entity.


If he wins at trial, Musk is seeking up to $134 billion in damages to be directed toward OpenAI's charitable arm.


Musk seeks court order to restore nonprofit status
Court demands


Along with monetary damages, Musk wants a court order to restore OpenAI's status as a nonprofit research organization.


He has also called for the removal of Altman and Brockman from their positions at the company.


The trial will be conducted in two phases: first, a jury will hear evidence on Musk's claims; second, Judge Yvonne Gonzalez Rogers will decide on the remedies sought by Musk.


OpenAI, Altman, Brockman, Microsoft deny wrongdoing
Denial


OpenAI, Altman, Brockman, as well as Microsoft have all denied any wrongdoing. They have described Musk's claims as baseless harassment.


The company also objected to the remedies proposed by Musk as an 11th-hour surprise.


Despite this legal battle, OpenAI has finished its for-profit restructuring plan, paving the way for it to raise more capital with plans to potentially go public in the future.

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