Civil Litigation,
Business Law
May 5, 2025
OpenAI drops plans to convert company to a for-profit business after Musk suit scores early win
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. It's not clear how OpenAI's announcement will affect the lawsuit, which is scheduled to go to trial next year.
Four days after a federal judge in Oakland allowed a key claim in Elon Musk's lawsuit against OpenAI Inc. and its executives to move forward, the company dropped plans Monday to become a for-profit business.
It was uncertain as of press time how that decision will affect Musk's lawsuit.
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. ...
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