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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.

OpenAI Said to Be Developing an AI-Driven Social Media Network

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OpenAI is reportedly preparing to launch its own social media platform, according to recent reports. The San Francisco-based artificial intelligence company is said to be working on integrating AI capabilities into this new social app, though specifics about how the AI features will be used remain unclear. The platform is rumored to be positioned as a competitor to Elon Musk’s X (formerly Twitter) and the suite of social apps owned by Mark Zuckerberg’s Meta. Notably, both X and Meta have recently introduced AI features into their ecosystems, highlighting a growing trend of blending AI with social experiences. This news surfaces just days after OpenAI announced its latest advancements with the GPT-4.1 family of models.

According to a report from The Verge, OpenAI’s social platform could be based heavily on ChatGPT. Sources close to the project suggest that an internal prototype already exists, reportedly emphasizing GPT-4o’s image-generation capabilities. The platform’s design includes a public feed where AI-created images may be displayed, hinting at a highly visual, content-driven experience. While it has been described as similar to X, the integration of generative AI at the core could set OpenAI’s project apart from more traditional social networks.

CEO Sam Altman has reportedly sought external feedback on the early prototype, though major questions remain. It is still unclear whether OpenAI intends to launch a standalone social app or incorporate these features directly into the existing ChatGPT interface. Observers have pointed out similarities to OpenAI’s video generation platform, Sora, which also features a content feed—though Sora lacks a true social element, as creators are not identified. Early indications suggest that OpenAI’s approach might prioritize showcasing AI capabilities in a social context, rather than building a purely human-driven network supplemented by AI, like X or Instagram.

The move into social media would also intensify OpenAI’s ongoing rivalry with X and Meta. Elon Musk, owner of X, has been openly critical of Sam Altman and OpenAI’s shift toward a for-profit structure. Musk previously filed a lawsuit against the company and even made a bid to acquire it, to which Altman responded sharply, joking that OpenAI would instead offer to buy Twitter for $9.74 billion. With tensions already high, OpenAI’s entry into the social networking space could further escalate competition among tech giants racing to dominate the future of AI-powered digital experiences.

ChatGPT Usage Soars to New Heights Following Launch of Viral “Ghibli Effect” Feature

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The recent rollout of ChatGPT’s image-generation feature, which enables users to create Ghibli-style artwork, has caused a significant surge in the platform’s usage. This viral trend quickly captured the attention of social media users worldwide, pushing OpenAI’s servers to their limits. The excitement surrounding the ability to generate hand-drawn, Studio Ghibli-inspired images sent waves of activity through the platform, leading to temporary restrictions on the feature’s availability as OpenAI worked to manage the flood of requests.

Studio Ghibli, renowned for its enchanting animation style in films like “Spirited Away” and “My Neighbor Totoro,” has inspired a dedicated global fanbase. This fandom recently found a new outlet through ChatGPT’s AI art generator, allowing them to recreate the iconic look of these films in a digital format. As users eagerly shared their Ghibli-style creations on social media, the trend quickly gained momentum, capturing the imagination of both old fans and newcomers alike.

As a result of this viral activity, ChatGPT saw its weekly active users reach unprecedented levels. For the first time this year, the platform exceeded 150 million active users, according to data from market research firm Similarweb. OpenAI CEO Sam Altman celebrated the growth, noting that the platform added a million users in just one hour, a sharp contrast to the pace of one million new users in five days during ChatGPT’s initial explosive launch two years ago.

This surge in usage had far-reaching effects. In addition to record-breaking user activity, both app downloads and in-app subscription revenue saw significant increases. SensorTower data highlighted a 11 percent jump in global app downloads and a 5 percent rise in weekly active users compared to the previous week. In-app purchase revenue also grew by 6 percent, indicating that the enhanced capabilities of GPT-4o, particularly in the realm of image generation, have sparked even more interest in ChatGPT’s premium offerings.