Judge denies Elon Musk’s request to block OpenAI for-profit conversion but welcomes trial
Associated Press21 hours ago
Judge Denies Musk's Bid to Block OpenAI For-profit Conversion
Above: Illustration of Elon Musk and OpenAI created on March 2, 2024. Image copyright: CFOTO/Contributor/Future Publishing via Getty Images
The Facts
US District Judge Yvonne Gonzalez Rogers rejected Elon Musk's request for a preliminary injunction to prevent OpenAI from converting to a for-profit entity, ruling that Musk failed to demonstrate a likelihood of success on the merits of the case.
The judge offered to expedite a trial to fall 2025 to address the core contract claims, citing public interest and potential harm if an unlawful conversion occurred.
Musk, who invested approximately $45M in OpenAI between 2015 and 2018, sued the company and Chief Executive Officer (CEO) Sam Altman, claiming they violated the terms of his foundational contributions to the charity and betrayed its founding nonprofit mission.
The Spin
Narrative A
This ruling is a win for sanity. Musk's almost $100B acquisition — trying to buy back a nonprofit he abandoned — felt like an attempt to regain control over a situation he had neglected. OpenAI's mission thrives without his meddling, and this ruling keeps Altman free to innovate. Musk would be a problematic addition to OpenAI.
Narrative B
Altman's push to privatize OpenAI is a power grab that sidelines AI safety for profit, betraying its nonprofit roots. His $40B self-deal also undervalues the mission, while Musk's $97B bid — genius even if it fails — forces accountability by hiking costs and scrutiny for Altman. Altman is precariously veering away from safety for profit, risking a world of unchecked AI while pocketing billions from scraped content.