A U.S. federal judge has denied Elon Musk’s request for an injunction to prevent OpenAI from transitioning into a for-profit company.
The ruling, delivered by Judge Yvonne Gonzalez Rogers of the U.S. District Court in California, determined that Elon Musk had not met the legal standard required for such an order.
However, the judge showed willingness to fast-track a trial on the issue later this year. “We look forward to a jury confirming that [OpenAI CEO Sam] Altman accepted Musk’s charitable contributions knowing full well they had to be used for the public’s benefit rather than his own enrichment,” said Marc Toberoff, Musk’s attorney.
OpenAI, originally founded as a nonprofit in 2015, has been restructuring to attract the funding necessary to improve its artificial intelligence research. The company welcomed the court’s decision but did not provide further comment. Microsoft, a major backer of OpenAI, also remained silent on the ruling.
Musk, who co-founded OpenAI alongside Altman but left before it gained prominence, filed the lawsuit in March 2024. He claimed the organisation had deviated from its original mission of developing AI for humanity’s benefit and was now prioritising profits.
The billionaire later expanded his case to include federal antitrust accusations, alleging that OpenAI and Microsoft had engaged in unfair competition by restricting investments in rival AI firms, including his own startup, xAI.
The case got worse when Musk, along with a group of investors, proposed a $97.4 billion bid to take control of OpenAI’s nonprofit division. However, OpenAI’s board rejected the offer. In response, Musk indicated he would withdraw his bid if OpenAI abandoned its for-profit goal.
OpenAI, for its part, has defended its decision to seek commercial success, arguing that financial backing is essential to develop cutting-edge AI models. The company maintains that its restructuring aligns with its mission, though Musk continues to challenge this stand.
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