Sign up to save tools and stay up to date with the latest in AI
bg
bg
1

Court Denies Elon Musk's Injunction in OpenAI Lawsuit

Mar 05, 2025 - lawyer-monthly.com
A federal judge has denied Elon Musk's request for an injunction to block OpenAI's transition from a nonprofit to a for-profit entity, arguing that the relief sought was "extraordinary" and required a full trial with proper evidence. Musk's lawsuit against OpenAI CEO Sam Altman includes claims of antitrust violations due to OpenAI's exclusive partnership with Microsoft and alleged agreements preventing investors from funding competitors. However, the judge found Musk's evidence insufficient, relying heavily on media articles deemed "classic hearsay."

Musk also alleged that OpenAI's shift to for-profit status breached the terms of his donations, but the judge found no formal contract to support this claim. While the injunction was denied, the case will continue, with potential expedited trial proceedings in 2025 and a full trial possibly delayed until 2027 or 2028. The outcome of this legal battle could have significant implications for OpenAI and the future of artificial intelligence.

Key takeaways:

  • Elon Musk is suing OpenAI CEO Sam Altman, claiming that OpenAI’s shift from nonprofit to for-profit violates its original mission and breaches his donation terms.
  • Musk accuses OpenAI of anti-competitive behavior, particularly with its exclusive partnership with Microsoft and alleged “funding block” agreements with investors.
  • Judge Yvonne Gonzales Rogers denied Musk’s request for an injunction, citing lack of solid evidence and the extraordinary nature of the relief Musk sought.
  • Although the injunction was denied, the case will continue, with potential expedited trial proceedings in 2025 and a full trial possibly delayed until 2027 or 2028.
View Full Article

Comments (0)

Be the first to comment!