Musk vs OpenAI trial continues into second week

The high-profile legal battle between Elon Musk and OpenAI has entered its second week, with testimony continuing in a California court case brought by the world’s richest man against the creators of ChatGPT, News.Az reports, citing AFP.

After Musk’s extensive testimony last week, Greg Brockman, co-founder and president of OpenAI, is scheduled to take the stand on Monday at the Oakland courthouse, where he will be questioned by Musk’s legal team.

Musk is seeking to compel OpenAI to revert to a non-profit structure, arguing against what he describes as its shift toward a profit-driven model in artificial intelligence development.

OpenAI CEO and co-founder Sam Altman, who was once considered Musk’s protégé before becoming a rival, is expected to testify during the week of May 11 rather than immediately.

The outcome of the trial could have major implications for OpenAI, which has rapidly grown into a leading generative AI company and is now valued at more than $850 billion, with plans for an initial public offering (IPO).

Microsoft CEO Satya Nadella may also testify this week. Microsoft is accused in the lawsuit of improperly funding OpenAI’s transition toward a commercial structure.

During three days of testimony last week, Musk presented himself as an early supporter of OpenAI who contributed approximately $38 million between 2016 and 2020 before distancing himself from the organization.

The CEO of Tesla and SpaceX argued that he originally supported OpenAI to counter Google’s dominance and ensure advanced artificial intelligence development remained free from purely profit-driven incentives. He has also repeatedly warned about potential risks posed by advanced AI systems to humanity.

Although OpenAI now operates as a highly profitable organization, it still maintains a nonprofit parent entity within its structure.

Altman and Brockman attended most of last week’s hearings but did not make public comments during or outside court proceedings. The case has drawn significant media attention, with large numbers of journalists covering the trial daily.

OpenAI’s legal team has questioned Musk’s motivations, suggesting financial interests may be a factor in his legal challenge.

Musk recently integrated his AI company xAI, which developed the Grok chatbot, into SpaceX. SpaceX is reportedly valued at around $1.25 trillion and is also considering a potential public listing.

The case carries significant stakes, as a ruling in Musk’s favor by Judge Yvonne Gonzalez Rogers could disrupt OpenAI’s planned IPO.

Such an outcome could also reshape the competitive global AI industry, where major players including Google, Anthropic, and Chinese technology firms are aggressively advancing their models.

Despite strong revenue growth across the sector, companies continue to face enormous costs tied to talent acquisition, high-performance chips, and the construction of large-scale data centers required to power artificial intelligence systems.

News.Az 

By Nijat Babayev