On Tuesday, OpenAI CEO Sam Altman mocked Elon Musk after a federal judge ruled that the billionaire’s fraud claims over ChatGPT-maker’s nonprofit origins can proceed to trial.
Altman Mocks Musk As Legal Battle Escalates
Altman took aim at Musk on X, writing that he was “really excited to get Elon under oath in a few months,” calling the moment “Christmas in April.”
The comment comes days after U.S. District Judge Yvonne Gonzalez Rogers rejected OpenAI’s request for summary judgment, allowing Musk’s fraud claims to move forward.
Musk Claims He Was Misled About Nonprofit Commitment
Musk, who co-founded OpenAI and donated about $38 million between 2016 and 2020, alleges the company’s leaders promised the organization would remain a nonprofit dedicated to the public good, according to Courthouse News Service.
In a 2017 message to OpenAI leadership, Musk warned he would stop funding the group unless it committed to staying nonprofit.
Altman responded that he remained “enthusiastic about the non-profit structure,” while co-founder Greg Brockman made similar assurances.
However, internal notes written by Brockman suggested uncertainty about that commitment, acknowledging that claiming long-term dedication to a nonprofit model could later prove untrue.
Judge Finds Evidence Of Possible Deception
In a 32-page order, Rogers said Brockman’s notes “could be read to suggest that Brockman intended to deceive,” creating factual disputes that must be resolved at trial.
The judge also rejected OpenAI’s argument that Musk lacked standing because he donated through intermediary funds, writing that such a ruling would weaken enforcement of charitable trusts.
Microsoft’s Role Draws Court Scrutiny
Rogers also denied Microsoft Corp’s (NASDAQ:MSFT) bid to dismiss claims that it aided and abetted a breach of fiduciary duty, citing internal communications showing awareness of donor concerns.
In one message, Microsoft’s chief technology officer questioned whether donors funded OpenAI only to see it become a closed, for-profit entity.
Trial Set For Late April
The trial is scheduled to begin on April 27 and run through May.
Musk, who left OpenAI’s board in 2018 and now runs rival AI firm xAI, has emerged as one of OpenAI’s sharpest critics as the company’s valuation has surged to roughly $500 billion.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Meir Chaimowitz on Shutterstock.com
Recent Comments