In a dramatic turn of events, tech mogul Elon Musk and artificial intelligence powerhouse OpenAI have agreed to fast-track their legal battle over OpenAI’s shift to a for-profit model. This agreement intensifies the ongoing rivalry between Musk, the world’s richest person, and OpenAI CEO Sam Altman.
According to a federal court filing on Friday in the U.S. District Court for the Northern District of California, both parties proposed an expedited trial set for this autumn. They have deferred the decision on whether the case will be decided by a jury or solely by the judge.
Earlier this month, a judge denied Musk’s request to pause OpenAI’s transition to a for-profit organization but approved the fast-tracked trial. OpenAI responded positively to this development, stating in a blog post, “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 with Altman in 2015, departed from the company before its rapid ascent and later established a competing AI startup, xAI, in 2023. Last year, Musk sued OpenAI and Altman, alleging that the company had deviated from its original mission to develop AI for the benefit of humanity, accusing it of pursuing corporate profit instead.
OpenAI and Altman have denied these allegations, asserting that Musk is attempting to hinder a competitor in the AI landscape. At the heart of the lawsuit is OpenAI’s transition to a for-profit model, which the company argues is essential for securing the substantial capital needed to compete in the expensive and rapidly evolving AI industry.
OpenAI’s recent fundraising efforts, including a $6.6 billion round and discussions for up to $40 billion in new funding from SoftBank Group, depend on the company’s restructuring to limit nonprofit control. Just weeks ago, Altman, who insists that OpenAI is not for sale, rejected an unsolicited $97.4 billion takeover bid from a Musk-led consortium with a succinct “no thank you.”
As the trial approaches, the tech world watches closely, anticipating the potential impacts on the future of AI development and the dynamics between two of its most influential figures.
