Elon Musk's Legal Battle with OpenAI Heats Up, Jury Trial Expected in 2027

Elon Musk's ongoing legal dispute with OpenAI CEO Sam Altman has taken a significant turn, with a California federal district judge estimating that a jury trial could occur well into 2027.

Backdrop: Musk's Departure from OpenAI

Musk co-founded OpenAI in 2015, but parted ways in 2018. He claims that Altman's push to convert OpenAI into a for-profit entity was a contributing factor to his departure. Altman, on the other hand, alleges that Musk sought to merge OpenAI with Tesla to provide additional funding.

Lawsuit: Musk's Allegations against OpenAI

In August 2022, Musk filed a lawsuit against OpenAI, alleging that it had abandoned its non-profit mission in favor of financial gain. He further claimed that his $45 million in donations were contingent on OpenAI remaining a non-profit organization.

Court's Decision: Oral Contract vs. Written Agreement

A California federal district judge has declined Musk's request for an immediate injunction to block OpenAI's conversion to a for-profit business. However, the judge acknowledged that Musk's allegations raised valid questions about the terms of his relationship with OpenAI. She noted that Musk had failed to secure a written contract for his donations, leading to the current dispute.

Unfair Competition Allegations

Musk also accuses Altman of violating laws against unfair competition by discouraging investors from funding OpenAI's rivals, including Musk's own company, xAI. Altman and OpenAI deny these claims.

Microsoft's Role

Microsoft is a major investor in OpenAI. Musk alleges that Microsoft's placement of two executives on OpenAI's board gave it an unfair advantage in the AI market.

Next Steps

The legal battle between Musk and OpenAI is expected to continue for several years, with a jury trial set for 2027. The outcome could have significant implications for the future of AI and the relationship between founders and their companies.