OpenAI and Elon Musk have reached an agreement to fast-track court proceedings concerning the company’s shift towards a for-profit business model, reported Reuters.
According to a recent federal court filing, Elon Musk and OpenAI proposed a trial for December 2024.
Go deeper with GlobalData
The filing in the US District Court for the Northern District of California also indicated that the decision on whether the case should be heard by a jury or a judge has been deferred.
Earlier in March 2025, the judge denied Musk’s request to halt OpenAI’s transition to a for-profit structure but granted a request for an expedited trial to take place in the autumn.
OpenAI was quoted by the news agency as saying in a blog post: “We welcome the court’s March 4 decision rejecting, Elon Musk’s latest attempt to slow down OpenAI for his personal benefit.”
Musk, who co-founded OpenAI with CEO Sam Altman in 2015, later established a competing AI firm, xAI, in 2023.
Musk, who is also the CEO of Tesla and owner of the social media platform X, filed a lawsuit against OpenAI and Altman in 2024
He accused them of deviating from OpenAI’s original mission, which was to develop AI for the benefit of humanity rather than corporate profit.
Altman said that Musk is attempting “to slow down a competitor”.
The lawsuit’s outcome will determine the future of OpenAI’s business model.
The company argues that adopting a for-profit structure is essential for attracting more investment and remaining competitive in the costly AI industry.
OpenAI’s previous fundraising round amounted to $6.6bn. The company is in talks with SoftBank Group for a potential new round of up to $40bn, contingent on OpenAI’s restructuring to eliminate the nonprofit’s control.
In February 2025, Bloomberg reported that Musk’s AI venture xAI was looking to secure $10bn funding, which would value the company at around $75bn.
Investors such as Sequoia Capital, Andreessen Horowitz, and Valor Equity Partners were reportedly considering participating in the round.
