OpenAI and Elon Musk to Face Expedited Trial Over For-Profit Dispute

OpenAI and Elon Musk have agreed to an expedited trial regarding OpenAI’s transition to a for-profit model, marking a pivotal moment in their ongoing legal battle.

Musk, who co-founded OpenAI in 2015 but left to start xAI, filed a lawsuit last year, claiming OpenAI deviated from its nonprofit mission. The company argues the shift is necessary to secure investment for AI research.

A federal judge denied Musk’s request to halt OpenAI’s transition but granted an accelerated trial set for autumn 2025.

The case centers on OpenAI’s restructuring, which Musk argues benefits corporate interests over public good. OpenAI contends Musk’s lawsuit is aimed at slowing competition, particularly against his own AI venture.

With billions in funding at stake, the trial’s outcome could shape the future of AI development and commercial AI investments.