Judge denies Musk's request to stop OpenAI's shift to for-profit model

Post by: Omar Nasser

Photo : AFP

A U.S. court has decided not to stop OpenAI from becoming a for-profit company, even though Elon Musk wanted to block it. Musk had asked the court to stop OpenAI, saying the company was moving away from its original goal of helping people. But the judge said Musk did not provide enough proof to support his request.

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Judge Yvonne Gonzalez Rogers from California said that Musk did not meet the high legal requirement needed to get an early court order against OpenAI. She explained that stopping OpenAI would need strong evidence, and Musk’s claims were not enough for such a big decision.

Even though the judge did not agree with Musk’s request, she said the case was important and promised to speed up the trial. A final decision could be made later this year.

Musk’s lawyer, Marc Toberoff, said he was happy that the court agreed to move the case forward quickly. He said they believe a jury will support Musk’s claim that OpenAI’s CEO, Sam Altman, used Musk’s money in the wrong way. According to Musk’s team, Altman accepted Musk’s donations knowing they were meant to help the public and not to make money for himself or his company.

OpenAI has defended its decision to become a for-profit company, saying it needs more money to build better artificial intelligence. The company said that raising large amounts of money is necessary to keep improving AI. OpenAI released a statement saying it was happy with the court’s decision.

Microsoft, which has invested a lot of money in OpenAI, did not reply when asked for a comment.

Musk had sued OpenAI and Sam Altman last year. He said OpenAI was supposed to develop AI that helps everyone, not just make money. He also said that he gave money to OpenAI because he believed in that goal. However, he now thinks OpenAI is only focused on making profits instead of working for the good of all people.

In December, Musk made his case even stronger by adding more legal claims, including complaints about unfair business practices. He asked the court to stop OpenAI from becoming a for-profit company right away.

Musk was one of the people who helped start OpenAI in 2015, along with Sam Altman and others. But he left the company before it became famous. Later, in 2023, Musk started his own AI company called xAI, which now competes with OpenAI.

Right now, OpenAI can continue to become a for-profit company. However, the final decision will come later when the court makes a ruling in the upcoming trial.

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