Key Points
- Elon Musk and OpenAI agreed to an expedited trial over OpenAI’s shift to a for-profit model.
- Musk sued OpenAI, accusing it of abandoning its mission to develop AI for humanity.
- OpenAI argues the for-profit transition is necessary to secure more funding and compete.
- The company is reportedly negotiating a new $40 billion investment from SoftBank. CEO Sam Altman rejected Musk’s $97.4 billion takeover bid for OpenAI.
The ongoing legal battle between Elon Musk and OpenAI has taken a new turn, with both parties agreeing to fast-track a trial regarding OpenAI’s shift to a for-profit model. According to a federal court filing on Friday, the case, becoming a high-profile dispute between Musk and OpenAI CEO Sam Altman, is now set for an expedited trial in the autumn.
Musk and OpenAI jointly proposed a trial in December 2023, but they have delayed deciding whether the case will be heard by a jury or solely by a judge. This decision follows a ruling earlier this month, where the court denied Musk’s request to pause OpenAI’s transition to a for-profit structure but agreed to speed up the trial.
In response to the ruling, OpenAI stated on March 4, “We welcome the court’s decision rejecting Elon Musk’s latest attempt to slow down OpenAI for his personal benefit.”
Musk co-founded OpenAI alongside Altman in 2015 but left before the company gained significant traction. He later launched his own AI venture, xAI, in 2023. In 2023, Musk filed a lawsuit against OpenAI and Altman, alleging that the company had abandoned its founding mission—developing AI for the benefit of humanity rather than for corporate profits. OpenAI and Altman have strongly denied these claims, arguing that Musk’s real intention is to hinder OpenAI’s growth as a competitor.
At the center of the lawsuit is OpenAI’s transition to a for-profit entity, which the company argues is essential for securing more funding and remaining competitive in the fast-growing AI sector. OpenAI recently raised $6.6 billion and is reportedly in talks for a new funding round of up to $40 billion, backed by SoftBank Group.
The transition requires restructuring OpenAI to remove the nonprofit’s control, making it more appealing to investors. This change is considered a crucial step for OpenAI’s future, but it remains a major point of contention in the legal battle. Adding to the drama, Musk’s consortium recently attempted to acquire OpenAI for $97.4 billion, but Altman firmly rejected the offer with a simple “no thank you.”
