Elon Musk Loses Court Battle Against OpenAI's Transition to For-Profit

A U.S. court denied Elon Musk's request to block OpenAI's shift to for-profit status. The case, brought by Musk against OpenAI and CEO Sam Altman, will proceed to a trial later this year. Musk claims OpenAI misused his contributions intended for public benefits.

A federal court in Oakland, California, rejected billionaire Elon Musk's bid for a preliminary injunction to halt OpenAI's transition to a for-profit entity. The decision, delivered by U.S. District Judge Yvonne Gonzalez Rogers, indicated that Musk did not meet the stringent requirements necessary to secure such an injunction.

Despite the denial, Judge Rogers has agreed to fast-track a trial concerning the matter, expected to occur later this year. Marc Toberoff, Musk's attorney, expressed satisfaction with the expedited trial, underscoring the case's 'urgent' relevance to public interest.

Musk's lawsuit accuses OpenAI and its CEO, Sam Altman, of misapplying Musk's charitable donations meant for public welfare. Originally founded as a nonprofit to advance AI for societal benefit, OpenAI seeks the transition to secure funding for advancing its AI capabilities, a move contested by Musk.

(With inputs from agencies.)