Judge rejects Elon Musk’s attempt to stop OpenAI from becoming for-profit

Judge rejects Elon Musk's attempt to stop OpenAI from becoming for-profit
UPI

March 5 (UPI) — A California judge denied a motion by Elon Musk to stop the OpenAI artificial intelligence research group from becoming a for-profit company.

Judge Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California rejected Musk’s request for a preliminary injunction Tuesday.

The judge, in a 16-page order, concluded that Musk, the CEO of electric-vehicle maker Tesla, founder of SpaceX space technology company and current adviser to President Donald Trump, failed to provide evidence strong enough to warrant the courts to immediately block OpenAI’s transition from a nonprofit.

Rogers said there was still potential for an expedited trial by the fall if Musk drops the “ancillary claims” against OpenAI, citing “the public interest at stake.”

“Such an approach would be more efficient and address the issues which are allegedly more urgent in terms of public, not private considerations,” she wrote.

Musk had first sued OpenAI in March 2024 for breach of contract and fiduciary duty, then again filed suit in August and further expanded the case in November with additional claims and defendants in November, accusing OpenAI, the owner of the ChatGPT artificial intelligence software application, of turning the organization into a “for-profit, market-paralyzing gorgon.”

OpenAI reacted by publicizing emails and private messages from Musk, with the intention of proving its allegation that Musk has wanted to and create a for-profit model intended to serve as the company’s new structure. An investor group led by Musk attempted in February to buy control of OpenAI for $97.4 billion.

Musk was one of the original founders of OpenAI but left in 2018, and the judge’s rejection does not mean that he cannot continue his legal actions. Lawyers for both OpenAI and Musk are slated to meet later this month to further discuss the case.

Authored by Upi via Breitbart March 5th 2025