Judge Denies Musk's Bid to Block OpenAI's For-Profit Transition

The court rejected Musk's request for an injunction but expedited a trial to address his claims about OpenAI's nonprofit origins and its shift to a for-profit model.

U.S. District Judge Yvonne Gonzalez Rogers ruled that Musk failed to meet the burden of proof for a preliminary injunction to halt OpenAI's transition to a for-profit structure.
The judge offered to fast-track a trial for fall 2025 to address Musk's claims, citing the public interest and potential legal implications of OpenAI's restructuring.
Musk alleges that OpenAI's shift violates the terms of his initial $45 million donation, which he claims was contingent on the organization remaining nonprofit.
OpenAI's leadership, including CEO Sam Altman, denies Musk's allegations, arguing that the lawsuit is motivated by competition with Musk's rival AI company, xAI.
The legal battle highlights broader tensions in the AI industry over governance, funding, and the balance between public benefit and profitability.