Elon Musk, OpenAI agree to fast-track trial over for-profit shift
What's the story
Elon Musk and OpenAI have agreed to fast-track a trial over the company's evolution into a profit-driven firm. The move comes amid an ongoing legal battle between Musk, the founder of xAI and Tesla, and Sam Altman, CEO of OpenAI. The proposal for this fast-tracked trial was jointly submitted by both parties in December last year.
Trial details
Court to decide on jury or judge-only trial
According to a recent federal court filing in the US District Court for the Northern District of California, it was decided that the choice between a jury trial or one presided over solely by a judge would be postponed. The judge has refused Musk's request to halt OpenAI's shift toward a profit-driven model but has agreed to hasten proceedings this year.
Response
OpenAI welcomes court's decision
OpenAI has welcomed the court's decision, rejecting Musk's latest attempt to block its transition for his own benefit. The company said this in a blog post yesterday. Musk co-founded OpenAI in 2015 with Altman but left before the company took off. He went on to found xAI, a competing start-up, in 2023.
Legal action
Musk's lawsuit against OpenAI and Altman
In 2023, Musk sued OpenAI and Altman, alleging that they strayed from their original mission to build AI for the benefit of humanity, not for corporate profit. Both OpenAI and Altman have denied the allegations. Altman even accused Musk of trying to sabotage a competitor. The lawsuit's outcome could have a major influence on OpenAI's transition to a profit-driven model.
Financial strategy
OpenAI's restructuring and fundraising efforts
OpenAI has argued that its shift to profit-driven model is critical to secure more funds and compete effectively in the expensive AI industry. The company's latest funding round raised $6.6 billion, with another round worth up to $40 billion reportedly in the works with SoftBank Group. However, the talks are dependent on OpenAI restructuring to remove the control of its nonprofit arm.