"OpenAI Inc. and Microsoft failed to escape a trial over Elon Musk's claims that Sam Altman's startup betrayed its founding mission as a public charity when it took billions in funding from the software giant and made plans to operate as a for-profit business. A federal judge in Oakland, California, on Thursday rejected requests by OpenAI and Microsoft to dismiss claims by Musk and ordered the case to proceed to a jury trial set for late April."
"She wrote that while the evidence is unclear, Musk claims that his contributions to OpenAI had a specific charitable purpose and that he attached two fundamental terms to it: that OpenAI be open source and that it would remain a nonprofit purposes consistent with OpenAI's charter and mission. Rejecting an argument by OpenAI, the judge found that Musk's use of an intermediary to donate $38 million in seed money to the startup doesn't strip him of legal standing to try to enforce those conditions."
"Musk helped Altman and others launch OpenAI in 2015 and went on to found his own artificial intelligence company in 2023. Mr. Musk's lawsuit continues to be baseless and a part of his ongoing pattern of harassment, and we look forward to demonstrating this at trial, OpenAI said in a statement. We remain focused on empowering the OpenAI Foundation, which is already one of the best resourced nonprofits ever."
A federal judge in Oakland refused to dismiss Elon Musk's claims that OpenAI breached promises to operate as a charitable trust and allowed the case to go to a jury in late April. Musk asserts his contributions carried specific charitable conditions that OpenAI be open source and remain a nonprofit. The judge found that donating $38 million via an intermediary does not remove Musk's legal standing to enforce those conditions. The judge also kept Musk's fraud allegations in the case, citing internal communications involving OpenAI co-founder Greg Brockman. OpenAI called the lawsuit baseless and characterized it as harassment.
Read at www.mercurynews.com
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