Elon Musk proposes to donate all damages sought in his lawsuit against OpenAI to the nonprofit organization, aiming to resolve the legal battle over alleged breaches of charitable trust. The $134 billion figure previously cited by Musk's legal team now appears abandoned, replaced by a settlement offer that would funnel any recovery directly to OpenAI. This dramatic shift comes after a judge rejected Musk's initial argument that he could claim profits generated by the organization he helped establish.

OpenAI maintains the lawsuit is baseless, while Musk accuses co-founder Sam Altman and other executives of transforming the nonprofit into a "wealth machine" for personal and corporate gain. The trial, set to begin this month, will now focus on whether Altman's actions violated OpenAI's founding mission to operate as a charitable entity for humanity's benefit.