OpenAI Business Model Dispute: Elon Musk, Sam Altman Ready to Fast Track Trial in December

Billionaire Elon Musk and Sam Altman run OpenAI have agreed to expedite a trial over the start‑up's change in business model. The move comes amid an ongoing legal battle between Musk and Altman over the start‑up shifting from their non‑profit business model to for‑profit.

According to the latest legal filing in the US District Court, Musk and OpenAI have jointly proposed a trial date in December. However, they have yet to decide whether the case will be determined by a judge or a jury.

The judge has approved an expedited trial for the fall but denied Musk's request to halt OpenAI's transition to a for‑profit model. "We welcome the court's March 4 decision rejecting the new tab Elon Musk's latest attempt to slow down OpenAI for his personal benefit," OpenAI said in a blog post on Friday.

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The Background

This legal battle is the continuation of a long‑standing feud between the two tech heavyweights. Musk and Altman were the early investors and co‑founders of OpenAI in 2015, with Musk first guiding the AI research organisation's path. However, Musk parted ways with OpenAI in 2018, claiming disagreements about the organisation's goals and safety regulations for the development of artificial general intelligence (AGI).

Musk has since been an outspoken opponent of OpenAI's strategy, especially after the business transitioned from a non‑profit to a capped‑profit model in 2019.

Originally, OpenAI’s founders approached Musk to fund a non‑profit focused on developing AI to benefit humanity, but it is now focused on making money, the billionaire said in a lawsuit against Altman and OpenAI. In December, he even asked the judge to stop OpenAI from transitioning to a non‑profit.

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In response, OpenAI also said it will move to dismiss Musk’s claims against the company and that the billionaire should be competing in the marketplace rather than the courtroom. The company’s corporate transition has become more critical, with its recent $6.6 billion fundraising round and an upcoming $25 billion round under discussion with SoftBank contingent on restructuring to eliminate non‑profit control.

The xAI CEO has launched various lawsuits against OpenAI and Sam Altman, alleging that the ChatGPT owner violates licensing agreements and antitrust laws. In one of his cases, Elon Musk claims that OpenAI and Sam Altman exploited him from the start when they 'lured' him into co‑founding the business.