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Judge says parts of Musk's lawsuit against OpenAI could go to trial

Feb, 06, 2025 Hi-network.com

A federal judge in California has indicated that some aspects of Elon Musk's lawsuit against OpenAI may proceed to trial. Musk will be required to testify, with a jury ultimately deciding the outcome. The lawsuit challenges OpenAI's transition from a nonprofit to a for-profit entity, a move Musk argues contradicts its original mission.

Judge Yvonne Gonzalez Rogers is reviewing Musk's request to block OpenAI's conversion before the trial. While she has not yet ruled on the injunction, she suggested Musk's legal team may need to present more evidence. OpenAI's lawyers argue that the restructuring is necessary to secure investment and continue developing advanced AI models.

The dispute has intensified as OpenAI seeks billions in funding, which is conditional on its corporate restructuring. Experts note that such nonprofit-to-for-profit transitions are rare, typically occurring in healthcare rather than AI startups. OpenAI maintains that Musk should compete in the market rather than pursue legal action.

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