OpenAI, led by CEO Sam Altman, is set for a jury trial in March following allegations from co-founder Elon Musk. Musk claims he was misled into investing over $44 million based on promises that OpenAI would remain a non-profit, which he argues was violated when the organization partnered with Microsoft for a $10 billion funding deal in October. Both OpenAI and Microsoft have denied these allegations, with the judge asserting there’s sufficient evidence to proceed. The trial could jeopardize OpenAI’s attempts to attract additional investments amid rising operational costs, with estimates suggesting the company may need to raise up to $90 billion in the next two years. This legal battle not only highlights tensions between Musk and OpenAI but also intensifies competition in the AI sector, particularly after Musk launched his own AI venture, xAI. OpenAI maintains that Musk’s lawsuit is a strategic move to undermine them as competitors.
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