A U.S. federal judge has rejected Elon Musk’s request for an injunction that would have immediately halted OpenAI’s conversion into a for-profit entity.
The ruling by Judge Yvonne Gonzalez Rogers comes amid ongoing litigation initiated by Musk, who alleges anticompetitive behavior and breach of contract by OpenAI and Microsoft.
Musk filed his injunction request late last year, accusing OpenAI of instructing certain investors not to fund rival AI ventures, including his own xAI. In her decision, Judge Gonzalez Rogers dismissed the claim based on evidence including a statement from OpenAI CEO Sam Altman. According to the judge, Altman had warned select investors—with access to sensitive information—that their rights would be terminated if they engaged in non-passive investments in competing companies.
The court also rejected Musk’s contention that OpenAI and co-founder Greg Brockman violated their founding mission to develop artificial intelligence "for the benefit of humanity." Musk has claimed that Altman and Brockman exploited his early financial support and altruism to secure funding for the venture. In response, OpenAI maintained that the lawsuit “has always been about the competition,” noting that Musk’s internal emails revealed his desire to merge a for-profit OpenAI into Tesla—a move that would have primarily benefited his own interests rather than those of OpenAI or broader U.S. interests.
Following the filing of his lawsuit last year, OpenAI disclosed internal communications indicating that Musk was aware of the company’s shift toward a for-profit model and had sought majority equity, control of the initial board, and the CEO position. In February, Musk attempted to buy OpenAI for $97.4 billion, a proposal that the company promptly declined.
The judge’s decision is significant as OpenAI is in discussions with government officials about transitioning to a more conventional corporate structure. While the injunction request has been denied, the judge has expedited the trial later this year, citing public interest and concerns that OpenAI’s transformation might cause harm if it were to occur in a manner contrary to legal requirements.
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