A California judge denied Elon Musk’s motion on Tuesday to issue an injunction that would have forced OpenAI to halt its transition from a nonprofit to a for-profit enterprise. Judge Yvonne Gonzalez Rogers of the U.S. District Court for the Northern District of California rejected Musk’s request for a preliminary injunction in a 16-page order. The court concluded that Musk failed to provide sufficient evidence to justify an immediate block on OpenAI’s structural shift.
The decision marks an initial victory for OpenAI and its founder, Sam Altman, amid a growing dispute with Musk, a former collaborator who now leads xAI, a competitor in the artificial intelligence space. Despite this setback, Musk retains the option to pursue further legal action against OpenAI, an organization he originally co-founded.
Musk filed the lawsuit against OpenAI in August, later expanding it in November with additional claims and defendants. He accused the company of transforming from a “tax-exempt charity” into a “for-profit, market-paralyzing gorgon.” In response, OpenAI released emails and private messages from Musk, arguing in a blog post that he had initially supported the idea of a for-profit structure for the company.
While denying Musk’s injunction request, Judge Rogers expressed willingness to expedite the trial as early as fall 2025, provided Musk narrows the scope of his case and drops peripheral claims. Rogers emphasized that such an approach would be more efficient and better address public concerns rather than private grievances.
The ongoing legal battle unfolds against the backdrop of a broader rivalry between Musk and Altman. Earlier this year, the two exchanged barbs on Musk’s social media platform, X, over Altman’s $500 billion Stargate data center deal with Oracle, SoftBank, and MGX. Musk questioned the financial viability of the deal, while Altman urged Musk to prioritize national interests over corporate gains.
Last month, Musk made an unsolicited bid to acquire the nonprofit overseeing OpenAI, which Altman firmly rejected, countering with an offer to purchase X instead. Lawyers for both parties are set to meet later this month to discuss the case. Judge Rogers noted that if Musk does not streamline his lawsuit, the full trial may not occur until 2027 or 2028.
— news from POLITICO