Judge Allows Elon Musk’s Lawsuit Against OpenAI for Alleged Nonprofit Mission Betrayal to Proceed – Microsoft (NASDAQ:MSFT)

On Wednesday, a U.S. judge ruled that Elon Musk’s lawsuit against OpenAI will proceed to a jury trial. Judge Yvonne Gonzalez Rogers stated there is enough evidence for the jury to determine if OpenAI violated its commitments as a nonprofit organization. The trial is set for March. Musk, who co-founded OpenAI in 2015, claims he invested approximately $38 million based on assurances that the organization would remain nonprofit and dedicated to public good. He alleges that OpenAI’s shift to a for-profit model, benefiting co-founders Sam Altman and Greg Brockman, violates these founding promises. OpenAI has denied the allegations, labeling the lawsuit “baseless,” and Microsoft, named in the case, seeks dismissal, asserting no evidence of wrongdoing. Moreover, Musk’s AI venture xAI has recently raised $20 billion, showing strong market positioning. This ongoing legal battle highlights tensions in the AI sector and the implications of commercial interests.

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