A major legal battle in the world of artificial intelligence is set to move forward, after a US judge ruled that Elon Musk's lawsuit against OpenAI and its CEO Sam Altman can proceed to a trial.
The Core of the Legal Dispute
Judge Yvonne Gonzalez Rogers of the US District Court in Oakland, California, stated during a hearing that there was plenty of evidence suggesting OpenAI's leaders had assured others its original nonprofit structure would be maintained. She determined there were enough disputed facts for a jury to consider, scheduling the trial for March rather than dismissing the case outright.
The billionaire, who co-founded OpenAI, alleges the organisation's leaders violated its founding mission by shifting to a for-profit model. Musk contends he contributed roughly $38 million, or about 60% of OpenAI's early funding, based on promises it would remain a nonprofit dedicated to public benefit. His lawsuit accuses Altman and fellow co-founder Greg Brockman of plotting this switch to enrich themselves, pointing to multibillion-dollar deals with Microsoft and a subsequent restructuring.
Arguments from Both Sides
In a statement following the hearing, OpenAI dismissed the case, saying: "Mr Musk's lawsuit continues to be baseless and a part of his ongoing pattern of harassment, and we look forward to demonstrating this at trial." The company and its founders have previously described Musk as a frustrated commercial competitor.
OpenAI's lawyers asked the judge to enter judgment against Musk, arguing he failed to provide a sufficient factual basis for claims like fraud and breach of contract and did not file the lawsuit in a timely manner. The judge noted the jury would also weigh whether the case was filed outside the statute of limitations.
Steven Molo, a lead attorney for Musk and his AI startup xAI, said after the hearing: "We look forward to presenting all the evidence of the defendants' wrongdoing to the jury." Musk is seeking unspecified monetary damages from what he calls OpenAI's "ill-gotten gains."
Broader AI Market Competition
The court dispute unfolds against a backdrop of intense competition for dominance in generative AI. Musk's own AI venture, xAI, and its chatbot Grok, are direct competitors to OpenAI and other tech developers. Microsoft, named as a co-defendant, urged the judge to throw out Musk's claims against it, with its lawyer stating there was no evidence the company "aided and abetted" OpenAI.
Judge Rogers is expected to issue a written order addressing OpenAI's attempt to have the case dismissed. The upcoming trial in March promises to be a significant chapter in the ongoing debate over the governance and commercial direction of leading artificial intelligence firms.
