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Musk's bid to halt OpenAI's for-profit transition rejected

Mar, 05, 2025 Hi-network.com

A US court has denied Elon Musk's request for a preliminary injunction against OpenAI's transition into a for-profit organisation.

US District Judge Yvonne Gonzalez Rogers ruled that Musk did not meet the high standards required to block the move. However, the judge indicated that she would expedite a trial on the matter, which is expected to take place later this year.

Musk, who co-founded OpenAI in 2015 but left before its major success, argued that OpenAI had initially sought his charitable funding to create AI for the public good, but has since shifted its focus towards making profits.

His lawyer, Marc Toberoff, expressed satisfaction that the judge had agreed to a swift trial, claiming that the case involves urgent public interest concerns.

OpenAI, which is seeking to become a for-profit entity to attract the necessary capital for its AI projects, welcomed the court's decision.

The company emphasised that its goal is to develop advanced AI models to benefit society. Musk's legal action, which also includes antitrust claims, stems from his frustration with OpenAI's shift in direction since he departed from the organisation.

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