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Judge Denies Musk's Attempt to Halt OpenAI’s Shift to For-Profit Status

A U.S. court denied billionaire Elon Musk's request for a preliminary injunction against OpenAI's transition to a for-profit organization. U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California stated that Musk did not meet the required standard for a preliminary injunction. Nonetheless, Rogers mentioned that she is willing to fast-track a trial on the matter later this year.

Musk's lawyer, Marc Toberoff, expressed contentment with the judge's decision to expedite the trial, emphasizing the urgency of the issues at stake. Toberoff stated, "We eagerly anticipate a jury confirmation that Altman accepted Musk's contributions with the understanding that they would benefit the public, not for personal gain."

OpenAI is pursuing a shift from a nonprofit to a for-profit model to ensure the necessary funds for advancing artificial intelligence technologies. The organization welcomed the court's ruling in a statement.

Microsoft, a supporter of OpenAI, did not respond to Reuters' inquiries.

Musk initiated legal action against OpenAI and Altman last year, claiming that the organization, originally conceived as a nonprofit for humanitarian AI development, had shifted focus to profit-making. He updated the lawsuit to include federal antitrust allegations and requested a halt to OpenAI's conversion into a for-profit entity in December.

Musk co-founded OpenAI with Altman in 2015 but departed before its growth, subsequently establishing a competing AI startup, xAI, in 2023.