Musk's fraud claims against OpenAI dismissed; trial on breach of trust begins Monday

A U.S. judge on Friday dismissed Elon Musk's fraud and constructive fraud claims against OpenAI and CEO Sam Altman, but kept his breach of charitable trust and unjust enrichment claims alive. Jury selection starts Monday with opening arguments on Tuesday.

Musk requested the fraud claims be dropped to streamline the case and keep the jury focused on whether OpenAI abandoned its original nonprofit mission to benefit humanity and became primarily a profit-driven company instead.

For OpenAI watchers and AI policy followers, this trial will set a legal precedent on whether for-profit AI companies can be held accountable to founding promises—potentially affecting how other AI startups balance nonprofit missions with commercial growth.