Judge Expedites Trial for Elon Musk's OpenAI Lawsuit After Denying Injunction
A U.S. judge has expedited Elon Musk's lawsuit against OpenAI, denying an injunction to block its for-profit transition but agreeing to an autumn trial for core claims.
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Musk's lawsuit also names OpenAI investor and partner Microsoft as a defendant and alleges that the companies violated antitrust law based on the alleged issuance of a so-called 'fund no competitors' edict issued by OpenAI and Microsoft allegedly commanding OpenAI investors to avoid investing in any competitor.
Elon Musk loses initial attempt to block OpenAI’s for-profit conversion
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Musk’s lawsuit named OpenAI, Altman, investor Microsoft, billionaire Reid Hoffman and others as co-defendants.
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The dispute has roots in a 2017 internal power struggle at the fledgling startup that led to Altman becoming OpenAI’s CEO.
Judge denies Elon Musk’s request to block OpenAI for-profit conversion but welcomes trial
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OpenAI's main backer, Microsoft, did not respond to a request for comment.
Judge denies Musk’s initial bid to halt OpenAI’s for-profit shift but sets trial for fall
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The fight between Musk and OpenAI is more than a personal dispute—it underscores the intense competition in the rapidly evolving artificial intelligence industry.
Elon Musk suffers legal blow over OpenAI
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Musk, who co-founded OpenAI in 2015 along with Altman, Ilya Sutskever, Greg Brockman and others, split from the company in early 2018 after failing to secure control over the company as its majority shareholder and CEO and later attempting to convince its founders to merge it with Tesla.
Federal judge denies Musk move to block OpenAI's shift to for-profit model
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Summary
U.S. District Judge Yvonne Gonzalez Rogers has denied Elon Musk's request for a preliminary injunction to pause OpenAI's transition to a for-profit model, citing a lack of proof. However, she expedited a trial to address Musk's claims, including breach of contract and antitrust violations, to the fall of 2025, noting significant public interest. Musk, who claims OpenAI's shift contradicts its original nonprofit mission and took advantage of his charitable contributions, has recently made a $97.4 billion unsolicited bid to acquire OpenAI, complicating his claim of irreparable harm. OpenAI maintains the dispute is about competition.
Perspectives
A federal judge denied Elon Musk's request for a preliminary injunction to block OpenAI's transition to a for-profit model, but agreed to expedite the trial to address Musk's core claims before the end of this year.
Musk's allegations include claims that OpenAI has strayed from its original mission of developing AI for the benefit of humanity, and there are significant public interest considerations if the conversion is found to be illegal at trial.
The lawsuit raises complex issues regarding Musk's contributions to OpenAI, as he argues that donations were contingent on the organization remaining a nonprofit, despite lacking formal contractual agreement.
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