A U.S. District Court on Tuesday rejected Elon Musk’s request for a preliminary injunction to halt OpenAI’s shift to a for-profit organization. The decision, issued by Judge Yvonne Gonzalez Rogers in Oakland, California, stated that Musk had not demonstrated the “high burden required” to justify blocking the transition.
Despite the setback, Judge Rogers indicated her willingness to fast-track a trial on the matter later this year, acknowledging the significance of the case’s core issues.
Musk’s legal representative, Marc Toberoff, expressed satisfaction with the court’s decision to expedite the trial, highlighting that the case involves “urgent” public interest matters. He reiterated the central argument, asserting that OpenAI’s CEO, Sam Altman, had knowingly accepted Musk’s charitable contributions with the understanding they were to benefit the public rather than being used for personal gain.
In response, OpenAI maintained that its shift from a nonprofit to a for-profit entity is essential to securing the investment needed for developing advanced artificial intelligence models. The company welcomed the court’s ruling and its decision to proceed without a preliminary injunction.
Microsoft, a significant backer of OpenAI, has not commented on the court’s ruling.
Musk’s lawsuit, originally filed last year, contends that OpenAI’s founders misrepresented their intentions when they sought funding for a nonprofit aimed at advancing AI for the public good. Musk claims that the company has since deviated from that mission by focusing on profit generation. The lawsuit was later expanded to include federal antitrust claims, and in December, Musk asked the court to block OpenAI’s move to become a for-profit organization.
Musk co-founded OpenAI with Altman in 2015 but stepped away from the company before it achieved significant success. He went on to establish the competing AI startup xAI in 2023.
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