Elon Musk, the CEO of Tesla and SpaceX, is suing OpenAI, a company he co-founded in 2015 with Sam Altman. Elon Musk and OpenAI, led by Sam Altman, decided to speed up their court case.
According to a report, the federal judge presiding over the case decided that the lawsuit trial will begin in spring 2026. Yvonne Gonzalez, the judge of the US District Court for the Northern District of California, denied Musk’s request to stop OpenAI from becoming a for-profit company and suggested an expedited trial.Â
Musk is upset because OpenAI, which was originally meant to create AI to help people, is becoming a company that makes money. Musk says the move goes against what OpenAI was supposed to be about. OpenAI and Altman disagree and say Musk is just trying to stop them because they’re a competitor.
Musk departed from OpenAI some time ago and established his AI company, xAI, in 2023. OpenAI and its leader, Sam Altman, say Musk’s claims against them aren’t true. Altman thinks Musk is just trying to hold back OpenAI because it’s a rival. The lawsuit is all about whether OpenAI can become a company, a for-profit company from a non-profit organization.
OpenAI says it needs to do this to get more funds; hence, the firm has finalized its first round of funding, in which it raised $40 billion from Japanese tech investment group SoftBank Group Corp. and other investors. With this deal, OpenAI’s money valuation has increased to $300 billion.Â
Earlier this year, Musk and some others offered Altman to buy OpenAI; he declined the offer to purchase OpenAI for $97.4 billion, as he preferred not to sell the company.
Last month, xAI bought Musk’s social media company, X, for $33 billion. This deal means that people who invested in X can now also share in the value of xAI, connecting Musk’s AI and social media businesses.
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