Elon Musk and OpenAI have reportedly set a December court date for their trial concerning the artificial intelligence startup’s transformation into a for-profit entity. According to a report by Reuters on March 15, both parties proposed the date in court documents, while the decision on whether the case will be heard by a jury or a judge remains pending.
Musk, who co-founded OpenAI with CEO Sam Altman in 2015, departed from the organization before the surge in generative AI technology. He later established his own competing firm, xAI. In 2024, Musk initiated legal proceedings against OpenAI and Altman, alleging that the company strayed from its original mission of creating beneficial AI. However, Altman and the team at OpenAI have dismissed Musk’s allegations, suggesting that Musk’s actions are driven by his desire to disrupt a rival firm.
The transition to a for-profit model, according to OpenAI, is essential for securing funding and staying competitive within the rapidly evolving AI industry. The company recently completed a $6.6 billion funding round, with future plans for another $40 billion contingent on abandoning the governance structure of the nonprofit organization. Last month, Musk and several investors offered OpenAI $97.4 billion for control of the nonprofit, but this proposal was ultimately rejected by Altman and the board.
In another development, OpenAI submitted a series of policy proposals to the White House aimed at enhancing America’s competitiveness in AI. Christopher Lehane, OpenAI’s Chief Global Affairs Officer, emphasized that the proposed policies would bolster economic growth and ensure national security. Among the suggestions is a call for the federal government to override state-level AI legislation to alleviate the mounting regulatory pressures on the industry. Additionally, OpenAI has advocated for a strategic approach to export controls that would limit technology flow to China while promoting exports to democratic nations.
