Elon Musk and OpenAI agree to fast-track trial over AI startup’s for-profit shift

Elon Musk and OpenAI agree to fast-track trial over AI startup’s for-profit shift

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Elon Musk and OpenAI have agreed to fast-track their legal battle, setting the stage for a trial this fall that could shape the future of the ChatGPT creator’s business model.

A court filing submitted on Friday in the U.S. District Court for the Northern District of California confirms that both parties have proposed a December trial date. However, they have yet to determine whether the case will be decided by a jury or a judge.

This development follows a federal judge’s recent decision to deny Musk’s request to halt OpenAI’s shift to a for-profit model while granting an expedited hearing on the lawsuit. OpenAI responded in a blog post, 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 with Sam Altman in 2015 before departing, filed a lawsuit last year, accusing the company and Altman of abandoning their original nonprofit mission to develop AI for the benefit of humanity rather than for corporate profits.

OpenAI and Altman reject Musk’s claims, arguing that he is merely attempting to stall a competitor while building his own AI company, xAI.

At the heart of the lawsuit is OpenAI’s transition to a for-profit model, which the company insists is crucial for attracting investors and staying competitive in the multi-billion-dollar AI industry.

OpenAI’s recent $6.6 billion funding round and a potential $40 billion investment deal with SoftBank hinge on the company removing nonprofit control—a move Musk is legally challenging.

Additionally, Musk, who now leads Tesla, SpaceX, and social media platform X, made an unsolicited $97.4 billion bid to take control of OpenAI. However, Altman rejected the offer outright with a brief response: “No, thank you.”

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