Catenaa, Thursday, March 06, 2025- A US District Court has ruled against Elon Musk’s attempt to block OpenAI’s transition from nonprofit to for-profit status on Tuesday (4).
Judge Yvonne Gonzalez Rogers stated that Musk failed to meet the “high burden” required for a preliminary injunction. However, the judge agreed to expedite a trial, which could take place later this year.
Musk had filed a lawsuit accusing OpenAI CEO Sam Altman of misleading him when the organization was initially founded. Musk argued that OpenAI’s transition to a for-profit model contradicted its original mission to create artificial intelligence for the public good. Musk’s legal team claimed that Altman accepted substantial charitable contributions from Musk, knowing the funds were intended to be used for nonprofit purposes.
OpenAI, which has developed the widely used AI tool ChatGPT, has sought the for-profit transition to secure the necessary capital for developing cutting-edge AI technologies.
The company welcomed the court’s decision, which allows it to proceed with its business model, including a significant partnership with Microsoft.
Musk co-founded OpenAI in 2015 but parted ways with the company before its growth. He went on to create xAI, a competitor in the AI space, in 2023. The case is seen as a key battle over the future of AI development and funding.
