OpenAI, Elon Musk Agree to Fast Tracked Trial Over For-Profit Shift

Musk cofounded OpenAI with Altman in 2015 but left before the company took off.

Advertisement
By Reuters | Updated: 17 March 2025 13:47 IST
Highlights
  • The court has denied Musk's request to pause OpenAI's shift to for-profit
  • Musk sued OpenAI, Altman for chasing profits with a non-profit firm
  • OpenAI and Altman have denied the allegations

Friday's filing comes after Altman rejected a $97.4 billion bid from a Musk-led consortium

Photo Credit: Reuters

OpenAI and Elon Musk have agreed to fast-track a trial over OpenAI's for-profit shift, the latest turn in a grudge match between the world's richest person and OpenAI CEO Sam Altman playing out publicly in court.

Billionaire Elon Musk and OpenAI jointly proposed a trial in December, according to a federal court filing on Friday.

Advertisement

The parties agreed to delay a decision on whether the expedited case will be decided by a jury or solely by the judge, said the filing in US District Court for the Northern District of California.

The judge this month denied Musk's request to pause the Artificial Intelligence (AI) group's transition to a for-profit model but agreed to an expedited trial in the autumn, the latest turn in the high-stakes legal fight.

Advertisement

"We welcome the court's March 4 decision rejecting Elon Musk's latest attempt to slow down OpenAI for his personal benefit," OpenAI said in a blog post on Friday.

Musk cofounded OpenAI with Altman in 2015 but left before the company took off and subsequently founded the competing startup xAI in 2023.

Advertisement

Last year, the CEO of Tesla and owner of the X social media platform sued OpenAI and Altman, accusing OpenAI of straying from its founding mission — to develop AI for the good of humanity, not corporate profit.

OpenAI and Altman have denied the allegations, while Altman alleges that Musk has been trying to slow down a competitor.

Advertisement

At stake in the lawsuit is the ChatGPT maker's transition to a for-profit model, which the startup says is crucial to raising more capital and competing well in the expensive AI race.

OpenAI's last fundraising round, of $6.6 billion (roughly Rs. 57,288 crore), and a new round of up to $40 billion (roughly Rs. 3,47,177 crore) under discussion with SoftBank Group, are conditioned on OpenAI restructuring to remove the nonprofit's control.

Friday's filing comes weeks after Altman, who has said OpenAI is not for sale, rejected a $97.4 billion (roughly Rs. 8,45,442 crore) unsolicited takeover bid from a Musk-led consortium with a "no thank you."

© Thomson Reuters 2025

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: Elon Musk, OpenAI, Sam Altman, ChatGPT, AI
Advertisement

Related Stories

Popular Mobile Brands
  1. Best Gaming Smartphones Under Rs. 50,000
  2. Best Compact Smartphones to Buy During Amazon, Flipkart Sale
  3. Oppo K14 Plus vs Redmi 17 vs Realme 16x Compared
  4. Best Phones Under Rs. 30,000 in India to Buy During Amazon and Flipkart Sale
  5. Best Laptops Under Rs. 90,000 in India to Buy During Amazon, Flipkart Sale
  1. Nothing Deals Revealed for Phone 4 Series, CMF Buds Lineup, More Ahead of Flipkart's Big Billion Days Sale
  2. F1 25, Hunt: Showdown 1896 and Earth Defense Force: World Brothers 2 Join PS Plus in October
  3. Samsung Galaxy A08 Launched in India With MediaTek Helio G99+ SoC, 6,000mAh Battery: Price, Features
  4. Samsung Galaxy Buds On Unveiled With Clip-On Design, Up to 9.5 Hours of Battery Life: Price, Features
  5. OnePlus Nord Buds 3r Gets Jade Mist Colour Variant in India: Price, Specifications
  6. Crypto Hack Losses Reach $768 Million in September, Marking 2026’s Worst Month
  7. Nike Apex Racing Shoe Launched With Double-Stacked Air Zoom Platform, Carbon Fibre Flyplate
  8. India Sees Stronger Centralised Crypto Exchange Inflows Than Singapore, Australia
  9. Google Announces Gemini 4 Argon With Longer Output Limit: See Features, Availability
  10. Oppo F35 Pro 5G, Oppo F35 5G Appear on Geekbench With MediaTek Chipsets Ahead of India Launch
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.