Judge Rejects Musk’s Bid to Halt OpenAI’s For-Profit Shift

A federal judge has ruled against Elon Musk’s request for a court order preventing OpenAI from converting into a for-profit entity, though she signaled a willingness to fast-track a trial on the matter, according to Reuters.

U.S. District Judge Yvonne Gonzalez Rogers issued her decision late Tuesday, stating that Musk failed to demonstrate a “likelihood of success on the merits” in his bid for a preliminary injunction. However, per Reuters, she acknowledged the case’s significance and suggested a trial could take place as early as this fall. She emphasized the “public interest at stake and potential for harm if a conversion contrary to law occurred.”

Musk, an early backer of OpenAI, has been embroiled in a legal battle with the company and its CEO, Sam Altman, for over a year. According to Reuters, the Tesla and SpaceX chief executive alleges that OpenAI has strayed from its original nonprofit mission, thereby breaching its founding agreements.

Read more: OpenAI Board Denies Receiving Formal Bid from Elon Musk

The dispute escalated late last year when Musk expanded his lawsuit to include Microsoft as a defendant and sought a court order to halt OpenAI’s transition to a for-profit structure. Additionally, Musk introduced his AI venture, xAI, as a plaintiff, arguing that OpenAI’s actions were restricting fair competition in the AI sector.

In a further development, Musk and a group of investors recently made an unsolicited $97.4 billion bid to acquire a controlling interest in OpenAI’s nonprofit arm. Judge Rogers noted that this offer undermined Musk’s assertion of “irreparable harm,” per Reuters.

Source: Reuters