In a major “clearing of the deck” just days before trial, Elon Musk officially dropped his fraud and constructive fraud claims against OpenAI and Sam Altman on Friday, April 24, 2026.
This move effectively slashes his sprawling lawsuit from 26 original claims down to just two, as his legal team seeks to “streamline” the case before jury selection begins this coming Monday in Oakland, California.
1. Whatโs Left: The Core Battle
By dropping the fraud allegations, Musk is pivoting the case to focus entirely on the legal structure and “broken promises” of OpenAI’s transition from a nonprofit to a for-profit giant.
- Remaining Claim 1: Breach of Charitable Trust โ Musk argues that OpenAI abandoned its founding mission to develop AI for the benefit of humanity by becoming a “wealth machine” for Microsoft.
- Remaining Claim 2: Unjust Enrichment โ He alleges that Sam Altman and Greg Brockman unfairly benefited from the tens of millions of dollars Musk personally donated under the guise of a nonprofit mission.
2. Why Drop the Fraud Claims Now?
Legal analysts view this as a strategic “11th-hour” maneuver to simplify the narrative for a jury.
- Lower Burden of Proof: Proving “fraud” requires showing specific intent to deceive at the time of the agreement, which is notoriously difficult. By focusing on “breach of trust,” Musk only needs to show that OpenAI’s current actions violate its original charitable purpose.
- Avoiding “Evasive Tactics” Labels: OpenAIโs lawyers have already characterized the move as a “legal ambush,” claiming Musk is trying to dodge a discovery process that might reveal his own competitive motivations with his rival firm, xAI.
- Jury Focus: In a court filing, Muskโs team stated the goal is to keep jurors focused on ensuring OpenAI benefits humanity rather than functioning as a “for-profit proxy” for Microsoft.
3. The Stakes: $134 Billion and a “Nonprofit Reset”
Despite dropping the fraud counts, the requested remedies remain some of the most aggressive in Silicon Valley history:
- Monetary Damages: Musk is seeking up to $134 billion in damages (revised from earlier estimates). Crucially, he has asked that this money be directed to OpenAIโs charitable arm, not his own pocket.
- Leadership Removal: He is still pushing for a court order to remove Sam Altman and Greg Brockman from their leadership roles.
- For-Profit Unwinding: The lawsuit seeks to halt or unwind OpenAI’s for-profit restructuring, potentially throwing a wrench into the company’s rumored $1 trillion IPO plans.
4. The Trial Timeline (AprilโMay 2026)
The case will unfold in two distinct phases under U.S. District Judge Yvonne Gonzalez Rogers:
| Phase | Date | Objective |
| Jury Selection | Monday, April 27 | Selecting nine jurors for the liability phase. |
| Liability Phase | Late April โ Mid-May | The jury issues an advisory verdict on whether any wrongdoing occurred. |
| Remedies Phase | Late May 2026 | Judge Gonzalez Rogers (alone) decides on final damages and leadership changes. |
Witness List: The upcoming weeks are expected to feature high-stakes testimony from Elon Musk, Sam Altman, and potentially Microsoft CEO Satya Nadella.
