OAKLAND, CALIFORNIA: A US federal court has denied Elon Musk’s request to halt OpenAI’s transition into a for-profit entity, dealing a setback to the billionaire’s lawsuit against the AI company he co-founded.
US District Judge Yvonne Gonzalez Rogers ruled that Musk failed to meet the “high burden required” for a preliminary injunction but agreed to expedite the trial later this year.
Musk’s Legal Battle Against OpenAI
Musk’s lawsuit, filed last year, claims that OpenAI’s CEO Sam Altman and the company betrayed its founding mission by prioritizing profits over public benefit.
- Musk alleged that his charitable contributions were meant to fund a nonprofit AI lab focused on benefiting humanity, not a commercial venture.
- He later expanded his lawsuit, adding federal antitrust and other claims.
- In December, he asked the court to block OpenAI’s transition into a for-profit entity.
Marc Toberoff, Musk’s attorney, welcomed the expedited trial, saying it raised “urgent issues in the public’s interest.”
OpenAI’s Defense & Microsoft’s Role
OpenAI has defended its for-profit shift, arguing that it needs substantial capital to continue developing cutting-edge AI models.
- The company said it welcomes the court’s decision.
- Microsoft, OpenAI’s biggest financial backer, has not commented on the ruling.
Musk’s Competing AI Venture
Musk co-founded OpenAI in 2015 but left the company before its rapid rise. He has since launched xAI, a direct competitor, in 2023.
With the trial set to proceed later this year, the legal battle over OpenAI’s mission and big-tech dominance in AI is far from over.
