Home / Technology / Judge Rules Musk Can Sue OpenAI Over For-Profit Shift
Judge Rules Musk Can Sue OpenAI Over For-Profit Shift
8 Jan
Summary
- Elon Musk can proceed with a jury trial against OpenAI.
- The trial concerns allegations that OpenAI violated its founding mission.
- OpenAI restructured to a for-profit entity, sparking the legal battle.
Billionaire Elon Musk has won a crucial decision, with a judge allowing a jury trial to determine if OpenAI, the creator of ChatGPT, has violated its founding mission. The lawsuit stems from OpenAI's restructuring into a for-profit entity, a move Musk alleges breaches prior assurances of maintaining a nonprofit, public-benefit structure.
The U.S. District Judge overseeing the case in Oakland, California, cited "plenty of evidence" supporting Musk's claims. A trial is now scheduled for March, where a jury will weigh the disputed facts, including whether the lawsuit was filed within the statute of limitations. Musk, a cofounder of OpenAI who left in 2018, is seeking unspecified damages for what he terms OpenAI's "ill-gotten gains."
This legal confrontation occurs as the generative artificial intelligence market sees escalating competition, with Musk's xAI and its Grok chatbot directly challenging OpenAI and other developers. OpenAI, along with co-founders Sam Altman and Greg Brockman, has denied the allegations, characterizing Musk as a "frustrated commercial competitor."
