Musk v/s Altman: Trial over OpenAI's future on March 16
What's the story
A pivotal federal court trial in the US is set for March 16. The case will see Elon Musk challenging Sam Altman's proposed changes to OpenAI's business model.
US District Judge Yvonne Gonzalez Rogers has expedited the process to avoid unnecessary delays until 2027.
Last month, she dismissed Musk's request to temporarily halt transition of the ChatGPT-maker from a non-profit organization to a more conventional for-profit company.
Legal challenge
Musk's lawsuit challenges legality of restructuring
The crux of Musk's 2024 lawsuit is the legality of OpenAI's restructuring plan.
An expedited trial could sway OpenAI's board in its decision to transition to a for-profit business model.
The trial could begin after OpenAI has already made the transition, with the start-up currently in talks with officials in Delaware and California over its restructuring plans.
Founding members
Musk and Altman's shared history with OpenAI
Musk and Altman co-founded OpenAI in 2015.
However, Musk claims OpenAI strayed from its original charitable mission when it took billions in funding from Microsoft, starting in 2019.
This was the year after Musk left OpenAI's board. In response to the allegations, OpenAI has denied any wrongdoing and claimed Musk's true motive is to promote his own AI start-up xAI through this legal battle.
Financial update
OpenAI's recent funding round and valuation
Earlier this week, OpenAI announced the completion of a $40 billion funding round led by SoftBank Group.
The deal values the company at $300 billion, nearly double its previous $157 billion valuation from October.
However, if OpenAI fails to complete its restructuring by the end of 2025, SoftBank could reduce its contribution from $30 billion to $20 billion.