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Elon Musk's attempt to block OpenAI's transition to a for-profit model was denied by a California federal court, but he secured a fast-tracked trial set for fall 2025. Musk claims his initial $45 million donation was contingent on OpenAI remaining a nonprofit, while OpenAI's co-founder Sam Altman and Microsoft dispute his allegations as baseless. The court acknowledged the complexity of Musk's claims, allowing for a jury to ultimately decide the matter.
Elon Musk's legal battle against OpenAI continues as a federal judge denied his request to block the company's transition to a for-profit model, while proposing a trial in California this fall. Musk alleges breach of contract and claims OpenAI has strayed from its nonprofit mission, despite his significant investments. The dispute highlights the competitive landscape of the AI industry, with Musk's xAI and OpenAI as key players amid concerns over AI's potential risks and regulatory challenges.
A U.S. judge has denied Elon Musk's request to halt OpenAI's transition to a for-profit model, allowing a fast-tracked trial to address the lawsuit's core claims. Musk argues that OpenAI has deviated from its original mission, while the company maintains that the lawsuit is driven by competition. OpenAI's CEO, Sam Altman, recently rejected a $97.4 billion takeover bid from Musk's consortium, asserting that the company is not for sale.
A federal judge has denied Elon Musk's attempt to block OpenAI's transition to a for-profit model, stating he did not meet the necessary criteria for a preliminary injunction. Musk's lawsuit claims OpenAI's founders misled him regarding their nonprofit intentions, while OpenAI argues Musk's actions are competitive tactics. The judge is set to expedite a trial later this year.
A federal judge has denied Elon Musk's request to block OpenAI's conversion to a for-profit entity, stating he did not demonstrate a likelihood of success in his claims. However, she is open to expediting a trial to address Musk's allegations of breach of contract and competition stifling against OpenAI and its CEO, Sam Altman. Musk's legal actions stem from his concerns over the company's shift from its nonprofit roots, despite his significant investments and a recent bid to acquire a controlling stake.
A U.S. court has denied Elon Musk's request for a preliminary injunction to block OpenAI's transition to a for-profit model, stating he did not meet the necessary legal standards. However, Judge Yvonne Gonzalez Rogers is set to expedite a trial on the matter, which Musk's lawyer claims involves urgent public interest issues. Musk's lawsuit alleges that OpenAI's founders misused charitable contributions intended for public benefit, as he seeks to challenge the company's profit-driven direction.
A federal judge in California has denied Elon Musk's attempt to block OpenAI's transition to a for-profit entity, stating that the plaintiffs did not meet the burden of proof for such an extraordinary request. While Musk's lawsuit can proceed, he has criticized OpenAI's shift as a "total scam" and offered to buy control of the nonprofit for $97.4 billion, which OpenAI's CEO Sam Altman dismissed as a tactic to hinder competition. OpenAI plans to establish a public benefit corporation to oversee its commercial operations while still being governed by a nonprofit parent.
OpenAI's board has unanimously rejected a $97.4 billion acquisition bid from a consortium led by Elon Musk, asserting that the organization is not for sale. Musk, who has previously sued OpenAI for straying from its mission, argues for a return to its open-source roots. In response, OpenAI's CEO Sam Altman humorously countered with an offer to buy Twitter for $9.74 billion.
Elon Musk is seeking a federal court injunction to prevent OpenAI from transitioning to a fully for-profit model, alleging violations of federal racketeering and antitrust laws. Musk's legal team claims OpenAI is engaging in a "group boycott" that restricts investment opportunities for his AI startup, xAI, while benefiting from sensitive information shared with Microsoft. OpenAI, which has evolved from a non-profit to a capped-profit model, is now facing increased competition in the rapidly growing generative AI market.
Marc Toberoff
People
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