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OpenAI and Elon Musk Agree to Fast-Tracked Trial Over For-Profit Shift

  • tech360.tv
  • Mar 17
  • 2 min read

OpenAI and Elon Musk have agreed to fast-track a trial over the artificial intelligence company's transition to a for-profit model. The legal battle between Musk and OpenAI CEO Sam Altman continues to unfold in court.


Credit: OpenAI
Credit: OpenAI

A federal court filing on Friday revealed that both parties proposed a trial in December. The U.S. District Court for the Northern District of California will determine whether the case will be decided by a jury or solely by the judge at a later stage.


Earlier this month, the judge denied Musk's request to pause OpenAI’s transition but approved an expedited trial in the autumn. OpenAI welcomed the court’s decision, stating in a blog post on Friday that Musk’s attempts to slow down the company for personal benefit had been rejected.


Musk co-founded OpenAI with Altman in 2015 but left before the company gained prominence. In 2023, he launched a competing AI startup, xAI. Last year, Musk sued OpenAI and Altman, alleging that the company had deviated from its original mission of developing AI for the benefit of humanity rather than corporate profit.


OpenAI and Altman have denied the allegations, with Altman claiming that Musk is attempting to hinder a competitor. The lawsuit centres on OpenAI’s shift to a for-profit model, which the company argues is necessary to secure funding and remain competitive in the AI industry.


OpenAI’s last fundraising round raised USD 6.6 billion, and discussions are ongoing for a new round of up to USD 40 billion with SoftBank Group. These investments are contingent on OpenAI restructuring to remove nonprofit control.


The latest court filing follows Altman’s rejection of a USD 97.4 billion unsolicited takeover bid from a Musk-led consortium. Altman dismissed the offer with a "no thank you."

 

  • OpenAI and Musk agreed to fast-track a trial over OpenAI’s for-profit shift.

  • A judge denied Musk’s request to pause OpenAI’s transition but approved an expedited trial.

  • Musk sued OpenAI, alleging it strayed from its original mission, while OpenAI denies the claims.


Source: REUTERS

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