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A federal court in California has rejected Elon Musk’s attempt to prevent OpenAI from transitioning into a for-profit organization, according to a court filing on Tuesday.  Elon Musk vs OpenAI The judge ruled that the plaintiffs failed to provide sufficient evidence for the drastic relief they asked. However, Musk’s broader lawsuit against the company, which he co-founded with Sam Altman, will still proceed. OpenAI, originally established as a nonprofit AI research lab in 2015, has been shifting towards commercialization, particularly with its popular ChatGPT chatbot. Despite being overseen by a nonprofit parent, the company has faced challenges in its attempt to restructure into a for-profit model, largely due to opposition from Musk, who has become one of Altman’s main critics. In November 2024, Musk’s legal team filed for an injunction to block OpenAI’s for-profit efforts. This legal move escalated the ongoing feud between Musk and OpenAI, which began in March 2024 when Musk filed a lawsuit against the company, alleging breach of contract and fiduciary duty. The case was later moved to federal court, where Musk expanded his claims to include antitrust violations, accusing Microsoft and OpenAI of blocking investments in rival companies, including Musk’s own xAI. Musk has publicly criticized OpenAI’s transformation, calling it a “total scam” and labeling the company as “evil.” In response to this, OpenAI argued that Musk had previously pushed for a for-profit structure in 2017 and that the current shift would involve establishing a public benefit corporation to control commercial operations while maintaining some nonprofit oversight. Last month, Musk’s investment group offered $97.4 billion to take control of OpenAI’s nonprofit parent, claiming it was time for the company to return to its open-source, safety-focused roots. Altman rejected the offer, dismissing it as a strategy to slow down a competitor. Musk later indicated in a…

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Filed under: News - @ March 5, 2025 2:26 am