In Oakland, a federal judge ruled that the lawsuit between billionaire Elon Musk and OpenAI, led by CEO Sam Altman, will proceed to a jury trial in spring 2026. The dispute revolves around OpenAI's decision to shift to a for-profit model, prompting Musk to take legal action against the organization. Despite Musk's efforts to halt OpenAI's transition, the judge proposed an expedited trial to address the matter swiftly.

Musk co-founded OpenAI with Altman in 2015 but later left to establish xAI, a competing AI startup in 2023. xAI recently acquired Musk's social media company X in a significant deal. The lawsuit alleges that OpenAI deviated from its original purpose of developing AI for societal benefit rather than financial gain, a claim that Altman and OpenAI refute, accusing Musk of hindering competition.

The outcome of the legal battle will determine OpenAI's move towards a for-profit structure, which the company argues is essential for securing funding and navigating the competitive AI landscape. OpenAI is in the process of raising funds, with SoftBank leading a potential $40 billion investment. While SoftBank has committed to providing $10 billion in funding, an additional $30 billion is contingent on OpenAI's transition to a for-profit entity by the year-end.

Altman has dismissed acquisition offers for OpenAI, including a $97.4 billion bid from an entity led by Musk. The tensions between Musk and OpenAI underscore the high-stakes competition in the AI industry.