OpenAI and billionaire Elon Musk have agreed to fast-track their ongoing legal battle over the AI company’s transition to a for-profit model, according to a federal court filing on Friday.
The case, which has become a high-profile dispute between Musk and OpenAI CEO Sam Altman, is set to go to trial in December.
The filing in the U.S. District Court for the Northern District of California indicates that both parties have postponed the decision on whether the case will be determined by a jury or solely by the judge. Earlier this month, a judge denied Musk’s request to halt OpenAI’s shift to a for-profit structure but approved an expedited trial set for the autumn.
“We welcome the court’s March 4 decision rejecting Elon Musk’s latest attempt to slow down OpenAI for his personal benefit,” OpenAI stated in a blog post on Friday.
Musk, who co-founded OpenAI with Altman in 2015 but left before the company’s rapid expansion, later established the competing AI firm xAI in 2023. Last year, the Tesla CEO and owner of X (formerly Twitter) sued OpenAI and Altman, accusing them of deviating from the company’s original mission—to develop AI for the benefit of humanity rather than corporate profit.
OpenAI and Altman have refuted these allegations, arguing instead that Musk is attempting to hinder a competitor. Central to the lawsuit is OpenAI’s transition to a for-profit model, a move the company insists is necessary to secure capital and remain competitive in the costly AI sector.
OpenAI recently raised $6.6 billion in funding and is reportedly in discussions with SoftBank Group for an additional round of up to $40 billion, contingent on restructuring to remove nonprofit oversight.
