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A judge blocked Musk's bid to stop OpenAI's for-profit conversion — but he'll still get his day in court

Mar 05, 2025 - businessinsider.com
Elon Musk's attempt to secure an injunction to stop OpenAI's transition to a for-profit entity was denied by US District Judge Yvonne Gonzalez Rogers, who described the request as "extraordinary and rarely granted." However, the court is open to expediting a trial for other parts of the lawsuit, potentially starting in fall 2025, due to the public interest involved. Musk, along with his startup xAI and former OpenAI board member Shivon Zilis, is challenging OpenAI's restructuring, which includes allegations of antitrust violations and Microsoft's involvement. The case is unlikely to be ready for trial until 2027 or 2028.

The legal battle stems from Musk's departure from OpenAI in 2018 and his subsequent criticism of the company's shift away from its nonprofit mission. In November, Musk's lawyers filed a revised lawsuit against OpenAI, expanding on previous legal actions. Last month, Musk's $97.4 billion bid to take control of OpenAI was rejected by the company's board, with Sam Altman humorously suggesting buying Twitter instead. Altman views Musk's legal actions as an attempt to hinder OpenAI's progress.

Key takeaways:

  • Elon Musk's request for an injunction to stop OpenAI's shift to a for-profit entity was denied by US District Judge Yvonne Gonzalez Rogers.
  • The court is willing to expedite a trial for other parts of the lawsuit related to contract-based claims, potentially starting in fall 2025.
  • Musk's lawsuit against OpenAI includes allegations of antitrust violations and adds Microsoft as a defendant due to its close ties with OpenAI.
  • Musk's recent $97.4 billion bid to take control of OpenAI was rejected by the company's board, highlighting ongoing tensions between Musk and OpenAI co-founder Sam Altman.
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