US Court Rejects Elon Musk’s Bid to Halt OpenAI’s Transition to For-Profit Model
A US court has denied Elon Musk’s request for an injunction to stop OpenAI from transitioning from a nonprofit to a for-profit company. District Judge Yvonne Gonzalez Rogers ruled late Tuesday that Musk had failed to demonstrate a likelihood of success in his case, emphasizing the public interest and potential harm if the transition was deemed unlawful. She also indicated a trial could take place as early as this fall.
The ruling follows OpenAI’s rejection of Musk’s $97.4 billion acquisition proposal. OpenAI CEO Sam Altman accused Musk of attempting to hinder the company’s progress in favor of his own AI venture, xAI. OpenAI welcomed the court’s decision, arguing that Musk had once sought to merge OpenAI with Tesla for personal gain rather than for the company’s original mission.
Musk’s lawsuit, filed last year, claims OpenAI abandoned its nonprofit principles after securing billions in funding from Microsoft. The legal battle comes as Musk, known for leading Tesla and SpaceX, remains a key figure in business and politics, particularly as a major donor to former US President Donald Trump.
