Judge rejects Elon Musk’s bid to block OpenAI’s for-profit shift
A US court has denied Elon Musk’s request to stop OpenAI from transitioning into a for-profit firm, a significant setback for the billionaire behind X.
District Judge Yvonne Gonzalez Rogers ruled on Tuesday that Musk had not met the necessary criteria for a preliminary injunction.
She cited “the public interest at stake and potential for harm if a conversion contrary to law occurred.”
Still, she agreed to fast-track a trial later this year.
The ruling marks the latest shift in Musk’s legal fight with OpenAI, which he helped launch in 2015, before departing three years later.
He accused the tech giant of straying from its original mission to develop AI for public good, claiming the company’s acceptance of billions from Microsoft contradicts its principles.
“OpenAI was founded on the principle of open-source AI for the good of humanity”, his legal team stated. “Instead, it has become a closed, for-profit entity benefiting a select few”.
OpenAI, led by chief executive Sam Altman, has dismissed Musk’s claims, arguing that transitioning to a for-profit model is essential to secure investment and compete in the increasingly costly industry.
The firm welcomed the court’s decision, stating that Musk’s lawsuit is driven by rivalry rather than principle, particularly given his own competing AI venture, xAI, which was launched in 2023.
“This has always been about competition. Elon’s own emails show he wanted to merge a for-profit OpenAI into tesla. That would have been great for his personal benefit, but not for our mission or US interest”, stated OpenAI.
The legal battle escalated after the firm rejected an unsolicited $97.4bn (£75.97bn) takeover bid led by Musk.
He branded Altman a “swindler”, after he had rejected his offer to buy the tech platform.
Yet, his legal team insisted that the case was about ensuring his donations were used for the public benefit, rather than private gain.
Meanwhile, OpenAI is reportedly in talks for a $40bn investment round, which would value the ChatGPT maker at up to $340bn.