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Civil Litigation,
Business Law

May 5, 2025

Judge allows key fraud claim in Musk's lawsuit against OpenAI, Microsoft

U.S. District Judge Yvonne Gonzalez Rogers trimmed Elon Musk's lawsuit against OpenAI, its executives, and Microsoft but allowed significant claims -- including fraud -- to proceed. The case, centered on OpenAI's shift away from its original nonprofit mission, will head to trial in two phases beginning in 2026.

Judge allows key fraud claim in Musk's lawsuit against OpenAI, Microsoft
Elon Musk. Photo: Frederic Legrand - COMEO/Shutterstock

A federal judge in Oakland has narrowed the scope of Elon Musk's lawsuit against OpenAI Inc., its executives and Microsoft Corp. but allowed some key claims to move forward.

U.S. District Judge Yvonne Gonzalez Rogers granted several motions to dismiss claims by Musk, who operates a competing AI company, though she granted leave to amend some of them.

But the judge, in a Thursday afternoon order, denied a motion by OpenAI and its executives to dismiss a claim of fraud...

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