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Authorized setback for Elon Musk in combat with OpenAI

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Legal setback for Elon Musk in fight with OpenAI
Elon Musk. Benoit Tessier/Reuters

A US court docket has denied billionaire entrepreneur Elon Musk a preliminary injunction he was in search of in opposition to ChatGPT maker OpenAI’s efforts to transform right into a for-profit agency.

US district choose Yvonne Gonzalez Rogers in Oakland, California stated Musk has not met “the excessive burden required for a preliminary injunction” to dam the conversion of OpenAI to a for-profit standing.

Nonetheless, Rogers stated that she is ready to expedite a trial on the difficulty to later this yr.

Marc Toberoff, a lawyer for Musk, stated they had been happy that the choose “supplied an expedited trial on the core claims driving this case, which in its phrases current ‘pressing’ points within the public’s curiosity”.

“We sit up for a jury confirming that [OpenAI CEO Sam] Altman accepted Musk’s charitable contributions figuring out full nicely that they had for use for the general public’s profit slightly than his personal enrichment,” Toberoff stated in a press release.

OpenAI has been making an attempt to transition from a non-profit right into a for-profit entity, which it says it must do to safe the capital required to develop the perfect synthetic intelligence fashions. The chatbot maker stated in a press release that it welcomed the court docket’s determination.

For-profit firm

OpenAI backer Microsoft didn’t reply to requests for remark.

Musk had filed a lawsuit in opposition to OpenAI and Altman final yr, saying OpenAI’s founders initially approached him to fund a non-profit targeted on creating AI to profit humanity, however that it’s now targeted on earning money.

He later expanded the lawsuit so as to add federal antitrust and different claims, and in December requested the choose presiding over the case to cease OpenAI’s transition right into a for-profit.

Learn: Former OpenAI CTO Mira Murati launches new AI start-up

Musk co-founded OpenAI with Altman in 2015, however left earlier than the corporate took off and subsequently based competing AI start-up xAI in 2023.  — Gnaneshwar Rajan, Angela Christy and Mike Scarcella, (c) 2025 Reuters

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