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Musk: "Scammer Altman Stole a Public Benefit Organization"... 'Fraud' Claim Actually Withdrawn
OpenAI: "Baseless Jealousy"... Jury Selection Concluded, Arguments 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 April 27 (local time), CEO Musk criticized via his X (formerly Twitter) account, "Scam Altman and Greg Stockman (Stockman as in 'stock-man') stole a public benefit organization. No more words needed."
He mocked them by slightly altering Sam, Altman CEO's first name, and Brockman, the last name of OpenAI President Greg Brockman, implying they gained undue profits, such as stock, from OpenAI through fraud.
Regarding this lawsuit, Musk asked, "The fundamental question is simple. Do we want to leave a legal precedent in the US that it's okay to plunder a public benefit organization?" He claimed, "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 on X a video from 2016 in which CEO Altman, then president of the startup support organization 'Y Combinator,' interviewed him and asked about OpenAI.
However, unlike his 'fraud offensive' targeting Altman outside the courtroom, Musk's side withdrew claims related to 'fraud' and 'constructive fraud' before this trial, US economic broadcaster CNBC reported today.
Musk's side initially filed a lawsuit in 2024, alleging 26 wrongdoings by CEO Altman and others, including fraud. However, a significant number of these were voluntarily withdrawn, and currently, only 'unjust enrichment' and 'breach of public trust' remain as trial issues.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 procedures began today, nine jurors were selected to handle this case.
Judge Yvonne Gonzalez Rogers, who is 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 make the final ruling.
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 the second-largest shareholder of OpenAI, is one of Musk's targets in the lawsuit.
Siobhan Zilis, a former OpenAI director who had four children with CEO Musk, 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. Full arguments are set to 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.
Musk CEO previously filed a lawsuit against Altman CEO and Brockman President, as well as OpenAI and MS, claiming he suffered damages when OpenAI broke its promise to operate as a non-profit and became a for-profit company, and that Altman CEO and Brockman President gained undue profits in the process.
Musk CEO is demanding the removal of CEO Altman and President Brockman and the return of $134 billion (approximately 198 trillion Korean Won) in unjust enrichment to the non-profit OpenAI Foundation in this lawsuit.
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