A federal court filing on Friday revealed that Musk and OpenAI jointly proposed the trial in December. The parties have also agreed to postpone a decision on whether the case will be decided by a jury or solely by the judge. The filing was made in the U.S. District Court for the Northern District of California.
Earlier this month, the judge denied Musk’s request to pause OpenAI’s shift to a for-profit structure but agreed to fast-track the trial, which is now scheduled for autumn.
OpenAI’s Response
In a blog post on Friday, OpenAI welcomed the court’s decision, stating, “We welcome the court’s March 4 decision rejecting Elon Musk’s latest attempt to slow down OpenAI for his personal benefit.”
Background of the Dispute
Musk co-founded OpenAI with Altman in 2015 but left the organization before it gained significant traction. In 2023, he launched xAI, a competing AI startup. Last year, Musk sued OpenAI and Altman, accusing the company of abandoning its founding mission to develop artificial intelligence for the benefit of humanity rather than for corporate profit.
OpenAI and Altman have denied these allegations, with Altman suggesting that Musk’s actions are an attempt to hinder a competitor.
Stakes of the Lawsuit
The lawsuit centers on OpenAI’s transition to a for-profit model, which the company argues is essential for raising capital and remaining competitive in the costly AI industry. OpenAI’s recent $6.6 billion fundraising round and ongoing discussions with SoftBank Group for a potential $40 billion investment are contingent on the company restructuring to reduce the nonprofit’s control.
Recent Developments
The court filing follows Altman’s recent rejection of a $97.4 billion unsolicited takeover bid from a Musk-led consortium. Altman, who has repeatedly stated that OpenAI is not for sale, responded with a firm “no thank you.”
As the legal battle unfolds, the outcome of the trial could have significant implications for OpenAI’s future and its role in the rapidly evolving AI landscape.