OpenAI CEO Sam Altman attended a business event in Tokyo, Japan, on February 3, 2025, where he promoted the use of AI for companies. The event was covered by REUTERS
OpenAI and Elon Musk have agreed to speed up their courtroom battle over the AI company’s shift to a for-profit model. This legal showdown marks another twist in the ongoing feud between Musk and OpenAI CEO Sam Altman, with both sides taking their fight public.
According to a federal court filing on Friday, both parties proposed a December trial. However, they have delayed deciding whether a judge alone or a jury will rule on the case. The legal dispute is unfolding in the U.S. District Court for the Northern District of California.
Earlier this month, a judge denied Musk’s request to halt OpenAI’s transition to a for-profit structure but approved an expedited trial in the fall. In response, OpenAI stated 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’s Lawsuit Against OpenAI
Elon Musk, who co-founded OpenAI alongside Altman in 2015, left the company before it gained global recognition. In 2023, he launched xAI, a direct competitor in the artificial intelligence space.
Last year, Musk sued OpenAI and Altman, alleging that they had abandoned the company's original mission—to develop AI for the benefit of humanity rather than corporate profit. Musk claims that OpenAI’s current direction prioritizes financial gains over ethical AI development.
However, OpenAI and Altman have strongly denied these accusations. Altman, in turn, argues that Musk is attempting to hinder OpenAI’s progress to give his own AI startup an edge in the market.
The Stakes in This Legal Battle
At the heart of this lawsuit is OpenAI’s decision to transition from a nonprofit to a for-profit company. OpenAI insists that this shift is essential for securing funding and remaining competitive in the AI industry, which demands massive financial investments.
The company has already secured $6.6 billion in funding and is currently in discussions with SoftBank for another round of up to $40 billion. However, these investments require OpenAI to alter its governance structure and reduce the nonprofit's control over the company.
Adding to the drama, OpenAI recently turned down a staggering $97.4 billion takeover bid from a Musk-led consortium, rejecting the offer with a firm “no, thank you.”
As the legal battle heats up, the tech world watches closely, with the outcome potentially reshaping the future of artificial intelligence and corporate control over groundbreaking AI technology.
