US Court Denies Elon Musk's Request to Block OpenAI's Transition to For-Profit
New Delhi (The Uttam Hindu): In a significant legal development on Tuesday, a US court denied billionaire entrepreneur Elon Musk's request for a preliminary injunction against OpenAI’s efforts to transition into a for-profit entity. US District Judge Yvonne Gonzalez Rogers, presiding in Oakland, California, ruled that Musk had not met the "high burden required for a preliminary injunction" to stop OpenAI from converting its nonprofit status.
While rejecting Musk's immediate request, Judge Rogers expressed her willingness to expedite a trial on the matter, suggesting it could take place later this year.
Marc Toberoff, Musk's attorney, reacted positively to the decision, noting that the judge's order to expedite the trial underscored the "urgent" nature of the issues at hand. “We look forward to a jury confirming that OpenAI CEO Sam Altman accepted Musk's charitable contributions, knowing they were meant for the public benefit, not personal gain,” Toberoff said.
OpenAI, which has been attempting to shift from a nonprofit to a for-profit model, claims that this change is necessary to attract the capital required to further develop cutting-edge AI technologies. The company welcomed the court's ruling and remains focused on its goal of transforming AI development.
Musk, who co-founded OpenAI with Altman in 2015, had initially been approached to fund a nonprofit organization aimed at creating AI for the benefit of humanity. However, Musk filed a lawsuit in 2022, accusing OpenAI of veering from its nonprofit mission to one centered on profit-making. In his suit, Musk added antitrust and other federal claims, asking the court to prevent OpenAI's for-profit transition.
Musk parted ways with OpenAI before it achieved major success, later founding his own competing AI venture, xAI, in 2023.
The lawsuit continues, with Musk aiming to block OpenAI's transition, while the company presses forward with its plans to secure funding for AI advancement.
