{"id":16396,"date":"2026-04-25T08:31:12","date_gmt":"2026-04-25T08:31:12","guid":{"rendered":"https:\/\/www.europesays.com\/ai\/16396\/"},"modified":"2026-04-25T08:31:12","modified_gmt":"2026-04-25T08:31:12","slug":"musks-openai-feud-intensifies-as-court-dismisses-fraud-charges-but-clears-path-for-high-stakes-trial-ove","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ai\/16396\/","title":{"rendered":"Musk’s OpenAI Feud Intensifies As Court Dismisses Fraud Charges But Clears Path For High-Stakes Trial Ove"},"content":{"rendered":"

On Friday, a U.S. judge narrowed Elon Musk’s legal battle against OpenAI, dismissing key fraud claims while allowing<\/a> a closely watched trial over the company’s nonprofit origins to move forward.<\/p>\n

Judge Dismisses Fraud Claims, Keeps Core Dispute Alive<\/p>\n

U.S. District Judge Yvonne Gonzalez Rogers ruled that Musk’s fraud and constructive fraud allegations lack sufficient grounds, effectively trimming the scope of the lawsuit, Reuters reported.<\/p>\n

However, the court allowed claims tied to breach of charitable trust and unjust enrichment to proceed, setting the stage for a high-stakes jury trial in Oakland, California.<\/p>\n

Jury selection is scheduled to begin Monday, with opening arguments expected Tuesday.<\/p>\n

Musk Targets OpenAI’s Shift To For-Profit Model<\/p>\n

At the heart of the dispute is Musk’s claim that OpenAI abandoned its founding mission as a nonprofit dedicated to benefiting humanity when it created a for-profit arm in 2019.<\/p>\n

The lawsuit also names CEO Sam Altman and tech giant Microsoft Corp (NASDAQ:<\/a>MSFT<\/a>), a major investor in OpenAI.<\/p>\n

Musk argues that the transition enabled the company to prioritize profits over the public good. He is seeking damages reportedly as high as $150 billion, with any proceeds pledged to charity<\/a>.<\/p>\n

OpenAI Fires Back, Calls Lawsuit Self-Serving<\/p>\n

OpenAI has strongly rejected the allegations, characterizing the lawsuit as a competitive move driven by Musk’s personal interests in the artificial intelligence<\/a> race.<\/p>\n

The company earlier said the claims amount to a “harassment campaign” fueled by rivalry rather than legitimate legal concerns.<\/p>\n

OpenAI has also warned that such large damages could severely impact its nonprofit arm.<\/p>\n

What’s At Stake In The Trial<\/p>\n

The upcoming trial will center on whether OpenAI violated its original charitable commitments by restructuring into a hybrid model.<\/p>\n

Musk is also pushing for structural changes, including a return to a fully nonprofit organization and the removal of key leadership.<\/p>\n

The case unfolds as OpenAI reportedly explores a potential IPO<\/a> that could value the company at up to $1 trillion, raising the stakes for both sides.<\/p>\n

Disclaimer:\u00a0This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.<\/p>\n

Image via Shutterstock<\/p>\n

Market News and Data brought to you by Benzinga APIs<\/a><\/p>\n

\u00a9 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.<\/p>\n

To add Benzinga News as your preferred source on Google, click here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"On Friday, a U.S. judge narrowed Elon Musk’s legal battle against OpenAI, dismissing key fraud claims while allowing…\n","protected":false},"author":2,"featured_media":16397,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[8110,5893,9655,5896,5892,157,5891,5899,7877,9466,9656],"class_list":{"0":"post-16396","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-openai","8":"tag-category-legal","9":"tag-category-news","10":"tag-category-startups","11":"tag-category-tech","12":"tag-cms-wordpress","13":"tag-openai","14":"tag-pageisbzpro-bz","15":"tag-symbol-msft","16":"tag-tag-elon-musk","17":"tag-tag-openai","18":"tag-tag-sam-altman"},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/16396","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=16396"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/16396\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/16397"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=16396"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=16396"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=16396"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}