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Musk: "Scammer Altman stole a public benefit organization"... but actually withdrew 'fraud' claims
OpenAI: "Baseless jealousy"... Jury selection completed, arguments to begin tomorrow
Elon Musk, CEO of Tesla, who filed a lawsuit against OpenAI, attacked Sam Altman, CEO of OpenAI, as a 'scammer' via social media (SNS) on the day the lawsuit began.
On the 27th (local time), CEO Musk criticized through his X (formerly Twitter) account, "Scam Altman and Greg Stockman (stock man) stole a public benefit organization. No more words are needed."
He mocked them by slightly altering Altman CEO's first name, Sam, and OpenAI President Greg Brockman's surname, Brockman, as if they had gained unfair profits, such as stocks, from OpenAI through fraud.
Regarding this lawsuit, Musk asked, "The fundamental question is simple. Do we want to leave a legal precedent in the U.S. that it's okay to plunder a public benefit organization?" adding, "I started and funded OpenAI for the public good, recruited key talent, and taught them all how to make a startup successful, and then they stole that public benefit organization."
He also re-posted a video on X that day, showing CEO Altman, who was the president of the startup support organization 'Y Combinator' in 2016, interviewing him and asking about OpenAI.
However, unlike the 'fraud offensive' launched against Altman outside court, Musk's side withdrew claims related to 'fraud' and 'constructive fraud' ahead of this trial, reported U.S. economic broadcaster CNBC today.
Musk's side had initially filed a lawsuit alleging 26 wrongdoings, including fraud, by CEO Altman and others in 2024, but subsequently voluntarily withdrew a significant number, leaving only 'unjust enrichment' and 'breach of public trust' as trial issues.
Musk's side explained that the exclusion of fraud-related claims from the lawsuit was 'to streamline the trial process.'
At the Oakland Division of the U.S. District Court for the Northern District of California, where the lawsuit proceedings began today, nine jurors were selected to handle the case.
Judge Yvonne Gonzalez Rogers, presiding over the trial, explained that the jury's verdict would have the effect of a recommendation with no legal binding force on the judge, and she would issue the final judgment.
During this trial, both CEOs Musk and Altman, as well as Microsoft (MS) CEO Satya Nadella, are expected to testify. MS, a major investor and second-largest shareholder of OpenAI, is one of the entities targeted by Musk's lawsuit.
Additionally, Shivon Zilis, a former OpenAI director who bore four of CEO Musk's children, is also expected to appear as a witness.
Judge Gonzalez Rogers announced that she would conduct this trial in two phases: a 'liability' phase to determine wrongdoing and a 'remedy' phase to decide on relief.
She predicted that the first phase, the 'liability' trial, would conclude around May 21. Formal arguments will begin on the 28th.
OpenAI stated via its official X account, "We look forward to presenting our case in court, where both truth and law are on our side," adding, "This lawsuit stems from baseless jealousy aimed at hindering a competitor."
CEO Altman and President Brockman appeared in court today, but CEO Musk did not.
CEO Musk previously filed a lawsuit against Altman, Brockman, OpenAI, and MS, claiming that he suffered damages when OpenAI broke its promise to operate as a non-profit and became a for-profit company, and that Altman and Brockman gained unjust enrichment in the process.
In this lawsuit, CEO Musk is demanding the removal of CEO Altman and President Brockman and the return of unjust enrichment totaling $134 billion (approximately 198 trillion Korean Won) to the non-profit OpenAI Foundation.
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