Elon Musk’s lawyers faced off with OpenAI in court Tuesday as a federal judge weighed the billionaire’s request for a court order that would block the ChatGPT maker from converting itself to a for-profit company. The judge described Musk’s claim of irreparable harm as a “stretch” and questioned why he invested tens of millions in OpenAI without a written contract.
US District Judge Yvonne Gonzalez Rogers stated she wouldn’t stop the case from moving to trial, potentially as early as June 2027. Musk sued OpenAI last year, alleging it had betrayed its founding aims as a nonprofit research lab benefiting the public good. The lawsuit also targets OpenAI’s business partner Microsoft and tech entrepreneur Reid Hoffman.
Gonzalez Rogers expressed concerns about two people connected to Microsoft on OpenAI’s board, including Deanna Templeton and Hoffman, who was added as a non-voting member after Musk stepped down from OpenAI’s board in 2023. The judge criticized the arrangement, saying it seemed unnecessary unless Templeton was there to communicate with others.
OpenAI has said Musk’s requested court order would “debilitate” its business and mission. The dispute revolves around a 2017 internal power struggle at the startup that led to Altman becoming OpenAI’s CEO. Emails show Musk had also sought to be CEO but was told he would hold too much power as a major shareholder and chief executive.
Musk is not the only one challenging OpenAI’s for-profit transition. Facebook and Instagram parent Meta Platforms has asked California’s attorney general to block it, and the office of Delaware’s attorney general is reviewing the conversion.
Source: https://fortune.com/2025/02/05/elon-musk-openai-sam-altman-lawsuit-judge-yvonne-gonzalez-rogers