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Musk vs OpenAI Suit Could Be Headed for Trial | PYMNTS.com

Feb 04, 2025 - pymnts.com
A federal judge has allowed parts of Elon Musk's lawsuit against OpenAI to proceed to trial, where Musk will testify. Musk, a co-founder of OpenAI, is suing to prevent the company from transitioning to a for-profit entity, arguing it contradicts its original mission. The judge is considering Musk's request for a preliminary injunction to stop the conversion before trial. Musk, who has since founded rival AI firm xAI, expanded his lawsuit to include antitrust claims. OpenAI argues the switch is necessary to secure significant investments, such as a $6.6 billion funding round and a potential $25 billion round with SoftBank, which depend on the restructuring.

In other news, OpenAI has launched an AI tool called "deep research," which uses the upcoming o3 AI model for web browsing and data analysis. This tool, employing the ChatGPT chatbot, can perform multistep online research, synthesizing information from various online sources to create reports quickly. The restructuring of OpenAI from a nonprofit to a for-profit entity is considered unusual, especially for a venture-backed company, according to experts.

Key takeaways:

  • A federal judge has allowed Elon Musk's lawsuit against OpenAI to proceed to trial, where Musk will testify regarding OpenAI's transition to a for-profit entity.
  • Musk, who co-founded OpenAI, argues that the company's shift to a for-profit model contradicts its original mission, and he has expanded his lawsuit to include federal antitrust claims.
  • OpenAI contends that the restructuring is necessary to secure significant investments, such as a $6.6 billion funding round and a potential $25 billion round with SoftBank.
  • OpenAI recently introduced an AI tool called "deep research," which uses its upcoming o3 AI model to perform rapid multistep online research, leveraging the ChatGPT chatbot for data analysis.
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