Elon Musk and OpenAI Agree to Accelerate Trial Amidst Legal Battle Over AI’s For-Profit Shift

In the latest development in the ongoing legal dispute between Elon Musk and OpenAI, both parties have agreed to expedite a trial over the company’s shift to a for-profit structure. According to Reuters, the decision was made following a joint proposal filed in December, with the trial now scheduled to take place in the fall. This agreement marks a significant moment in the high-profile legal clash, which pits Musk, the world’s wealthiest individual, against OpenAI CEO Sam Altman.

The filing, which was submitted to the U.S. District Court for the Northern District of California on Friday, confirmed that the parties have postponed a decision on whether the trial will be decided by a judge or a jury. In a separate ruling earlier this month, the court denied Musk’s request to pause OpenAI’s ongoing transition into a for-profit model but agreed to fast-track the case. OpenAI expressed its approval of the court’s March 4 decision, calling it a win against Musk’s efforts to stall the company’s progress for personal gain.

“We welcome the court’s March 4 decision rejecting Elon Musk’s latest attempt to slow down OpenAI for his personal benefit,” the company stated in a blog post, according to Reuters.

Related: Judge Rejects Musk’s Bid to Halt OpenAI’s For-Profit Shift

Musk, who was a co-founder of OpenAI in 2015, has been at odds with the company ever since he left prior to its significant rise in the AI space. Following his departure, Musk went on to establish his own AI venture, xAI, in 2023. The tension between Musk and OpenAI escalated when he filed a lawsuit last year accusing the organization and Altman of deviating from their original mission of developing artificial intelligence for the collective good rather than for profit.

Altman and OpenAI have strongly denied Musk’s claims, with Altman asserting that Musk’s actions are driven by a desire to impede a competitor. According to Reuters, the core of the legal dispute lies in OpenAI’s move to adopt a for-profit model, which the company argues is essential to securing substantial investments and maintaining a competitive edge in the costly and rapidly evolving AI sector.

OpenAI’s recent $6.6 billion fundraising round and an ongoing negotiation for up to $40 billion with SoftBank Group are contingent on the company restructuring to remove the nonprofit’s control, as reported by Reuters. The outcome of this trial could have significant implications for the future of OpenAI and its ability to secure funding for its ambitious AI projects.

Source: Reuters