The ongoing legal showdown between Elon Musk and OpenAI is moving forward at full speed, with both sides agreeing to an expedited trial over OpenAI’s shift to a for-profit model. According to a recent court filing, the trial is slated for autumn 2025 in the US District Court for the Northern District of California. However, it’s still unclear whether the case will be decided by a jury or left entirely in the hands of a judge.
Court ruling & OpenAI’s response
This latest development follows a major win for OpenAI, as the court denied Musk’s request to put a hold on the company’s restructuring efforts. OpenAI welcomed the ruling on March 4, accusing Musk of trying to stall its progress for his own benefit.
Musk, who co-founded OpenAI in 2015 alongside CEO Sam Altman, left before the company became a dominant player in AI. Since then, he’s been vocal about his concerns regarding OpenAI’s direction—especially after launching his own AI startup, xAI, in 2023. Last year, Musk took legal action against OpenAI and Altman, alleging that they had betrayed OpenAI’s original mission of making AI accessible for the public good in favour of corporate profit.
OpenAI has firmly denied Musk’s claims, arguing that its for-profit shift is not only strategic but essential to secure funding and stay competitive in the fast-moving AI industry.
A high-stakes fight for AI funding
This lawsuit is unfolding at a critical time for OpenAI, which has been aggressively raising funds to maintain its leadership in AI. The company recently secured a $6.6 billion investment and is reportedly in discussions for another $40 billion funding round, led by SoftBank Group—a deal that hinges on OpenAI’s for-profit structure remaining in place.
Adding fuel to the fire, OpenAI turned down a staggering $97.4 billion takeover offer from a Musk-led group, with Altman making it clear that OpenAI is not for sale.
What’s at stake?
This legal battle underscores the broader debate over AI’s future—commercialisation vs. public benefit. Musk argues that OpenAI has lost sight of its founding principles, prioritizing financial gain over its original vision of AI for the public good. OpenAI, on the other hand, insists that without private funding, it can’t compete in an industry dominated by tech giants.
With billions of dollars and the future of AI governance on the line, the upcoming trial will be a defining moment—not just for OpenAI, but for the broader AI industry.
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