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Elon Musk to Proceed with Lawsuit Against OpenAI Despite Nonprofit Control Assurance

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Elon Musk will continue pursuing his lawsuit against OpenAI, his attorney Marc Toberoff confirmed on Monday, despite the company reaffirming that its nonprofit parent will retain control over its for-profit arm.

OpenAI, co-founded by Musk, had recently proposed a governance plan that maintains its nonprofit entity’s control over its for-profit operations and gives it a significant shareholder position. However, Musk’s legal team claims the move is superficial and insufficient.

“Nothing in today’s announcement changes the fact that OpenAI will still be developing closed-source AI for the benefit of [CEO Sam] Altman, his investors, and Microsoft,” said Toberoff. He criticized the plan for lacking transparency, particularly regarding the nonprofit’s diluted stake in the for-profit venture.

Musk, who has grown increasingly critical of OpenAI, accuses the company of abandoning its original mission of open-source development for public benefit. His lawsuit aims to block what he describes as a corporate shift toward private enrichment, particularly in favor of Microsoft, a key investor and partner.

OpenAI dismissed Musk’s lawsuit as meritless, with a company spokesperson stating, “Elon continuing with his baseless lawsuit only proves that it was always a bad-faith attempt to slow us down.”

The case is expected to proceed to jury trial in March 2026. It has drawn wide attention from other tech leaders and AI researchers, including Meta and Geoffrey Hinton, the “godfather of AI,” who have raised concerns about the implications of powerful AI being developed under private control without sufficient regulatory oversight.

India Forms Expert Panel to Review Copyright Law in Wake of AI Legal Battles

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India has convened an eight-member expert panel to review the Copyright Act of 1957 and assess whether it adequately addresses artificial intelligence-related disputes, amid ongoing litigation against OpenAI by major Indian news publishers.

The secret memo, reviewed by Reuters, outlines how the Ministry of Commerce has tasked intellectual property lawyers, government officials, and tech executives to examine legal and policy challenges related to the use of copyrighted content by AI models like ChatGPT.

The move comes in response to a pending high court case in New Delhi filed by prominent media entities such as NDTV, Indian Express, Hindustan Times, and members of the Digital News Publishers Association. The plaintiffs accuse OpenAI of using their content without authorization to train ChatGPT, which they argue constitutes copyright infringement.

OpenAI has denied any wrongdoing, asserting that it uses publicly available data and offers an opt-out mechanism for websites. The company maintains that its practices do not breach Indian copyright law.

The panel’s mandate includes reviewing the scope and interpretation of existing laws, evaluating how global copyright trends intersect with AI, and delivering recommendations for legal updates or clarifications to the government.

India joins a growing list of countries — including the U.S., EU members, and Japan — grappling with how to regulate AI training data in a way that balances innovation, creator rights, and fair use.

Canadian News Media Companies Sue OpenAI Over Copyright Breaches

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Five prominent Canadian news organizations—Torstar, Postmedia, The Globe and Mail, The Canadian Press, and CBC/Radio-Canada—filed a legal claim against OpenAI, accusing the company of violating copyright laws and online terms of use. The lawsuit alleges that OpenAI has been systematically scraping large volumes of content to train its generative AI models without obtaining permission or offering compensation.

This legal action is part of a broader wave of lawsuits targeting AI companies, including OpenAI, for alleged misuse of copyrighted materials. Authors, visual artists, music publishers, and other content creators have also raised concerns about the use of their work in AI training.

In their joint statement, the Canadian media companies emphasized the importance of journalism as a public good. “OpenAI using other companies’ journalism for their own commercial gain is not just unethical—it’s illegal,” the statement declared.

The lawsuit, filed in Ontario’s superior court of justice, demands financial damages and a permanent injunction to prevent OpenAI from using the plaintiffs’ content without explicit consent. “Rather than seek information legally, OpenAI has opted to misappropriate our intellectual property for its commercial purposes without any form of compensation,” the filing states.

OpenAI’s Response

OpenAI defended its practices, asserting that its models are trained on publicly available data and adhere to principles of fair use and international copyright standards. A spokesperson highlighted OpenAI’s ongoing collaboration with news publishers, including providing content attribution and opt-out mechanisms.

“We aim to ensure a fair approach for creators while offering tools for publishers to manage their content in ChatGPT search,” OpenAI stated.

Legal Context and Industry Trends

The Canadian lawsuit follows a Nov. 7 ruling in the United States where a New York federal judge dismissed a similar case against OpenAI involving articles from news outlets Raw Story and AlterNet.

Microsoft, OpenAI’s primary backer, was not mentioned in the Canadian legal filing. However, earlier this month, Elon Musk expanded his own lawsuit against OpenAI to include Microsoft, alleging anti-competitive practices in the generative AI sector.

The outcome of this case could have significant implications for how AI companies source and use content in model training, shaping the future relationship between technology firms and content creators.