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Musk withdraws fraud claims in OpenAI case

by Blitz India Media
April 25, 2026
in News
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Elon Musk
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Blitz Bureau

NEW DELHI: Elon Musk, CEO of Tesla, has reportedly withdrawn fraud claims against OpenAI and its co-founders Sam Altman and Greg Brockman, narrowing the scope of his lawsuit on the eve of trial. As per reports, Yvonne Gonzalez Rogers, a US court judge, has allowed Musk to streamline the case, leaving just two claims, unjust enrichment and breach of charitable trust, out of the 26 included in his November 2024 complaint.

The jury selection is scheduled to begin on April 27in a federal court in Oakland, California. Musk has alleged that OpenAI deviated from its founding mission as a non-profit aimed at benefiting humanity after securing billions of dollars in funding from Microsoft and transitioning towards a for-profit structure.

He is seeking damages of up to $134 billion, which he said should be directed to OpenAI’s charitable arm if he succeeds. Musk has also requested the court to restore the organisation’s nonprofit status and remove Altman and Brockman from their leadership roles.

However, OpenAI, along with Altman, Brockman and Microsoft, has denied the allegations, calling them baseless and accusing Musk of introducing last-minute demands ahead of the trial. The trial will proceed in two phases. In the first phase, a jury will hear arguments related to the remaining claims and issue a non-binding advisory verdict. In the second phase, the judge will decide on the remedies sought by Musk.

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