OpenAI and Musk Commit to Expedited Trial Regarding Shift Toward Profit-Making

OpenAI and Musk have reached an agreement to expedite a trial concerning the organization's transition to a for-profit model.

OpenAI and Musk Commit to Expedited Trial Regarding Shift Toward Profit-Making
OpenAI and Elon Musk have reached an agreement to expedite a trial concerning OpenAI's shift to a for-profit model, marking a notable development in the ongoing legal dispute between Musk, the world's richest individual, and OpenAI CEO Sam Altman, which is unfolding in public court proceedings.

According to a federal court filing on Friday, Musk and OpenAI jointly proposed a trial set for December.

The filing also noted that the parties have agreed to postpone the decision regarding whether the expedited case will be determined by a jury or solely by the judge in the U.S. District Court for the Northern District of California.

Earlier this month, the judge dismissed Musk's request to halt the artificial intelligence firm's transition to a for-profit entity but approved an expedited trial for the autumn, adding another chapter to this high-stakes legal battle.

OpenAI expressed its stance in a blog post on Friday, stating, "We welcome the court's March 4 decision rejecting Elon Musk's latest attempt to slow down OpenAI for his personal benefit."

Musk, who co-founded OpenAI alongside Altman in 2015, departed the company prior to its rise and went on to establish a competing venture, xAI, in 2023.

In the previous year, the Tesla CEO and owner of the X social media platform filed a lawsuit against OpenAI and Altman, alleging that OpenAI had deviated from its original mission of creating AI for the benefit of humanity rather than for corporate gain.

Both OpenAI and Altman have denied these allegations, with Altman asserting that Musk is attempting to hinder a competitor.

The lawsuit centers on OpenAI's shift to a for-profit structure, which the company claims is essential for securing additional funding and maintaining competitiveness in the costly AI sector.

OpenAI's recent funding round, which raised $6.6 billion, and an upcoming round potentially worth up to $40 billion in discussions with SoftBank Group, hinge on the company's restructuring to eliminate the nonprofit's control.

The filing on Friday follows Altman's rejection of a $97.4 billion unsolicited takeover offer from a consortium led by Musk, to which he responded with a simple "no thank you."

Navid Kalantari contributed to this report for TROIB News