1 hour ago
3
ARTICLE AD BOX
Elon Musk's lawsuit against OpenAI, alleging a departure from its non-profit mission for commercial gain, is heading to trial this spring. Market commentator Jim Cramer believes this legal battle could significantly impact OpenAI's future public offering. Musk claims the company, particularly its partnership with Microsoft, has betrayed its founding principles.
Market commentator and CNBC host Jim Cramer has said that Elon Musk’s lawsuit against ChatGPT maker OpenAI is not a “good one” for the company. In a post on X (formerly known as Twitter), Cramer wrote that the legal case could become a major issue for OpenAI, especially if the company plans to go public in the future.
“This Musk suit against OpenAI is the real deal..and not a good one for OpenAI if and when it wants to go public. It needs to do a private round at a big valuation ahead of the trial. Musk has unlimited firepower,” he wrote in the post. Elon Musk, who co-founded OpenAI in 2015 and left the organisation in 2018, is currently suing the company and CEO Sam Altman over what he claims is a shift away from OpenAI’s original non-profit mission.
Elon Musk's lawsuit against OpenAI gets a trial date
The lawsuit, originally filed in 2024 is now officially headed to trial this spring. During a court hearing earlier this month to consider whether there was sufficient evidence to warrant a jury trial, US District Judge Yvonne Gonzalez Rogers said that there was “plenty of evidence”. In a latest, Rogers has set jury selection for April 27, with proceedings starting the following day. As per court filings, the trial is said to last up to four weeks, through May 22.
Allegations against OpenAI
In the 2024 lawsuit, Musk alleges that OpenAI has strayed from its original mission of developing AI for the benefit of humanity and instead prioritised commercial interests. He further claims that the company’s partnership with software giant Microsoft resulted in significant funding and resources for the company, which is a breach of the company's founding contract.“After Musk lent his name to the venture, invested significant time, tens of millions of dollars in seed capital, and recruited top Al scientists for OpenAI, Inc.,
Musk and the non-profit's namesake objective were betrayed by Altman and his accomplices. The perfidy and deceit are of Shakespearean proportions,” the lawsuit claimed.“Once OpenAI, Inc.'s technology approached transformative AGI, Altman flipped the narrative and proceeded to cash in,” it added.
OpenAI denies Musk’s allegations
OpenAI has denied Elon Musk’s allegations. An OpenAI spokesperson previously told Business Insider “Mr Musk's lawsuit continues to be baseless and a part of his ongoing pattern of harassment, and we look forward to demonstrating this at trial”, adding “We remain focused on empowering the OpenAI Foundation, which is already one of the best resourced nonprofits ever.”
English (US) ·