A US judge has rejected Elon Musk’s request to immediately stop OpenAI from operating as a for-profit company. However, the judge has agreed to speed up the trial, with the case expected to be heard in court sometime between September and November 2025. Notably, Elon Musk initially filed a lawsuit against OpenAI and its CEO – Sam Altman – in February 2024, alleging that the company’s shift toward a for-profit model violated its original mission.
Following a series of legal plots, including a temporary withdrawal and subsequent reinstatement of the lawsuit in August 2024, Musk sought a preliminary injunction to immediately halt OpenAI’s transition to a for-profit entity while the lawsuit is ongoing. In fact, in December 2024, a non-profit organization – Encode also requested permission to file a brief in support of Musk’s injunction to block OpenAI’s for-profit move.
But now, US District Judge Yvonne Gonzalez Rogers denied the request for a preliminary injunction, stating that Musk did not meet the ‘high burden required’ for such an order. Meanwhile, she acknowledged the public interest in the case and agreed to expedite the trial.
While the denial allows OpenAI to continue its transition to a for-profit model without immediate legal hindrance, the expedited trial gives Elon Musk an opportunity to present his case against OpenAI’s restructuring.
Speaking of the transition details as shared by the ChatGPT maker itself, if OpenAI successfully transitions to a for-profit model, its nonprofit arm would remain but lose control over daily operations. Instead, it would hold a stake in the for-profit entity, with shares valued by independent financial advisors, and focus on charitable efforts in healthcare, education, and science. On the other hand, the for-profit entity would focus on supervising the firm’s operations and business.
Founded in 2015 as a nonprofit with the mission to develop artificial intelligence for the benefit of humanity, OpenAI has since moved toward a for-profit structure to attract more capital and remain competitive in the AI industry. Notably, Elon Musk – a co-founder of OpenAI – left the organization in 2018 due to disagreements over its direction. He has since launched a rival AI company – xAI in 2023.
Earlier last month, an Elon Musk-led consortium offered $97.4 billion to buy OpenAI’s controlling nonprofit entity. In response, OpenAI CEO Sam Altman rejected the deal and posted on X, saying, “No, thank you, but we will buy Twitter for $9.74 billion if you want.”
