New Delhi, May 2 -- OpenAI faced a major setback this week as US District Judge Jvonne Gonzalez Rogers allowed Elon Musk's lawsuit against the ChatGPT maker to move forward on charges of fraud. However, the judge did throw out charges of racketeering, false advertising and breach of fiduciary duty. Meanwhile, the judge also refused to dismiss unjust enrichment against OpenAI and Microsoft.

Musk had started OpenAI along with Sam Altman, Greg Brockman and other top executives by donating much of the money that got the AI startup off the ground and is now claiming in the lawsuit that ChatGPT maker's conversion from a non-profit constitutes a breach of contract and fraud.

"Musk adequately alleges that the defendants promised to maintain Ope...