The high-stakes legal battle between Elon Musk and OpenAI has been delayed, with both parties agreeing to a March 2026 trial date that pushes the showdown three months later than initially proposed.
Key Points:
- Trial delayed to March 2026, three months later than previously proposed
- $20 billion of SoftBank's $40 billion investment conditional on OpenAI's for-profit conversion by end of 2025
- Judge previously denied Musk's request to block the conversion but fast-tracked trial
The lawsuit is Musk's attempt to prevent OpenAI from converting from its current nonprofit structure to a for-profit corporation. The timing creates particular tension as a significant portion of SoftBank's recent $40 billion depends on OpenAI completing this corporate transformation by the end of 2025.
Judge Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California will preside over the jury trial. She previously denied Musk's request for a preliminary injunction to block the conversion but agreed to expedite the proceedings given "the public interest at stake and potential for harm if a conversion contrary to law occurred."
Despite the pending SoftBank deadline, OpenAI's legal representation showed no resistance to the extended timeline. During Friday's hearing, the company's lawyer remarked, "we're happy to accommodate more time" for expert testimony.
This lawsuit represents just one chapter in the increasingly bitter rivalry between Musk, who co-founded OpenAI in 2015 before departing, and CEO Sam Altman. Musk claims the organization has betrayed its founding mission of developing AI for humanity's benefit rather than corporate profit. His legal action seeks to block the conversion, arguing that the company’s recent financial maneuvers, including a notable partnership with Microsoft, have veered too far from its nonprofit roots. OpenAI’s legal representatives, meanwhile, counter that Musk’s challenge is less about preserving a charitable vision and more about stalling a competitor’s momentum, especially given his own deepening involvement in the AI sector through xAI.
Last month, Musk's own AI startup xAI acquired his social media platform X in a deal valuing the combined entity at over $100 billion. Meanwhile, OpenAI's recent funding round, if completed, would value the ChatGPT maker at approximately $300 billion.