In a recent legal development, U.S. District Judge Yvonne Gonzalez Rogers has denied Elon Musk’s request to block OpenAI’s controversial move to convert into a for-profit company. However, the judge did offer a glimmer of hope for Elon Musk, saying she could expedite a trial to address his claims against the artificial intelligence (AI) company and its CEO, Sam Altman.
The ruling, issued late Tuesday, concluded that Elon Musk had not shown a “likelihood of success on the merits” of his case. This decision blocked Elon Musk’s request for a preliminary injunction, which intended to stop OpenAI from pursuing its plan to transform into a for-profit entity. Despite the setback, Judge Gonzalez Rogers indicated a willingness to fast-track the trial, aiming for a hearing as soon as this fall. The trial would address Elon Musk’s core claims, given the significant public interest in the matter and the potential for harm if OpenAI’s conversion proceeds in a manner that violates legal norms.
Elon Musk Claims OpenAI Betrayed Nonprofit Mission, Accuses Company of Undermining Public Good
The dispute between Elon Musk and OpenAI has been brewing for over a year. Elon Musk, an early investor in the company, has accused OpenAI and its CEO of breaching the terms of its original nonprofit mission. According to him, OpenAI’s transition to a for-profit business undermines the principles on which the company was founded, especially its commitment to advancing AI for the public good.
In his lawsuit, Elon Musk claims that OpenAI’s actions violate the terms of his foundational contributions to the organization, which include an estimated $45 million investment from its inception until 2018. He argues that the company’s shift toward a for-profit model could enrich a select few, contrary to the public-serving ideals envisioned by the organization when it was first established. His legal team has also added claims against Microsoft, which has partnered with OpenAI, and filed the suit alongside his own AI venture, xAI, which he claims is being unfairly stifled by OpenAI’s business practices.
OpenAI, in a statement following the ruling, welcomed the judge’s decision. The company maintained that its shift to a for-profit model is grounded in the need to remain competitive in the rapidly developing AI landscape. The company further emphasized that his past actions (including his own efforts to merge OpenAI with his other ventures), reveal that his real concern lies in competition rather than any breach of trust. OpenAI’s response also pointed to emails that suggest Elon Musk attempted to integrate OpenAI into Tesla for personal gain, rather than for the benefit of the broader mission or the United States.