Elon Musk vs. OpenAI: The High-Stakes Legal Battle Over AI Profitability

Elon Musk and OpenAI have agreed to expedite a trial over OpenAI's transition to a for-profit model, continuing a public dispute with CEO Sam Altman. The legal battle focuses on allegations of mission drift by OpenAI. The case is crucial for OpenAI's funding and competitiveness in the AI sector.

Elon Musk and OpenAI are set to fast-track a trial over OpenAI's transition to a for-profit model, marking the latest development in a public feud between Musk and OpenAI CEO Sam Altman. The trial, scheduled for December, was proposed jointly by both parties as revealed in a federal court filing.

According to the U.S. District Court for the Northern District of California, the decision on whether the expedited trial will be jury-based or judge-based has been deferred. Recently, the court denied Musk's request to halt OpenAI's shift towards profitability, but permitted an expedited trial this autumn.

The lawsuit, spurred by Musk's allegations that OpenAI has deviated from its foundational mission, takes aim at the AI company's transition, essential for raising capital. OpenAI, having denied these claims, argues the change is necessary to remain competitive. In the backdrop is an unsolicited $97.4 billion takeover bid by a Musk-led group, previously dismissed by Altman.

(With inputs from agencies.)