Elon Musk and OpenAI jury trial to begin in spring next year - The latest updates
Published on April 5, 2025 10:03 am IST in OAKLAND, Billionaire Elon Musk's lawsuit against OpenAI will go to a jury trial in spring 2026, the federal judge presiding over the case decided on Friday. Last month, OpenAI and Musk agreed to fast-track a trial over OpenAI's for-profit shift, the latest turn in a grudge match between the world's richest person and OpenAI CEO Sam Altman playing out publicly in court.
Background of the Lawsuit
The judge, Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California, had denied Musk's request to pause the ChatGPT maker's transition to a for-profit model and instead proposed an expedited trial. Musk co-founded OpenAI with Altman in 2015 but left before the company took off and subsequently founded the competing startup xAI in 2023.
Recent Developments
xAI last month acquired Musk's social media company X in a deal that values X at $33 billion and allows the value of his artificial intelligence firm to be shared with co-investors in X. Musk, who is also the CEO of Tesla, sued OpenAI and Altman last year, accusing OpenAI of straying from its founding mission to develop AI for the good of humanity, not corporate profit.
Implications of the Lawsuit
At stake in the lawsuit is the ChatGPT maker's transition to a for-profit model, which the startup says is crucial to raising more capital and competing well in the expensive AI race. OpenAI is under pressure to transition quickly. The company is currently raising a funding round of up to $40 billion led by Japanese tech investment group SoftBank.
Future Prospects
Altman, who has said OpenAI is not for sale, rejected a $97.4 billion unsolicited takeover bid earlier this year from a Musk-led consortium. The lawsuit will determine the future direction of OpenAI and the implications for the development of AI technologies.
Published on April 5, 2025 10:03 am IST
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