Court Clash: Elon Musk vs. OpenAI Over For-Profit Transition

Elon Musk's lawsuit against OpenAI over its transition to a for-profit entity will be heard in court, marking the latest phase in a public dispute with OpenAI CEO Sam Altman. The company claims the shift is essential for securing future investment, whereas Musk alleges a move away from the nonprofit's original mission.

Elon Musk and OpenAI are embroiled in a legal battle, with arguments scheduled for Tuesday at a U.S. federal court. Musk, who co-founded OpenAI in 2015 before leaving, opposes its transformation to a for-profit entity.

The hearing in Northern District of California focuses on Musk's lawsuit to prevent this transition, which he claims contradicts OpenAI's original nonprofit mission. OpenAI intends to secure funding to expand its AI models.

Musk expanded his lawsuit, including antitrust claims, while OpenAI aims to dismiss them, arguing Musk should compete in business rather than in court. The stakes are high, with billions in funding contingent on OpenAI's restructuring.

(With inputs from agencies.)