Opinion Allowing Elon Musk’s Claims Against OpenAI to Go Forward, Partly Allowing Claims Against Microsoft

The opinion by Judge Yvonne Gonzalez Rogers (N.D. Cal.) in Musk v. Altman was just posted.

Musk’s breach of charitable trust, constructive fraud, fraud, and unjust enrichment claims against OpenAI can go forward, as can Musk’s claim against Microsoft for aiding and abetting breach of fiduciary duty. Musk’s tortious interference with contract claim against Microsoft was thrown out. Musk’s unjust enrichment claim against Microsoft was also thrown out, but on the grounds that he “may ‘pursue [unjust enrichment] as an equitable remedy’ for aiding and abetting ‘rather than [as] a separate cause of action.'”

Recall that “This action arises from a contentious dispute between Elon Musk and Samuel Altman (and their respective companies) over large, charitable donations that Musk made to OpenAI, Inc. during the company’s infancy and Microsoft’s later investments in OpenAI, Inc.’s for-profit ventures.” I haven’t followed the case closely enough to opine (though I was local counsel for Larry Lessig on an amicus brief he filed). But I thought some of our readers might be interested in the opinion.