US Judge Agrees to Fast-Track Trial on AI Competition Lawsuit
A US judge has denied billionaire Elon Musk’s request for a preliminary injunction to halt OpenAI’s transition to a for-profit model. The decision allows the lawsuit, which accuses OpenAI of straying from its founding mission to develop artificial intelligence for humanity, to proceed with a fast-track trial this fall.
Musk and OpenAI have been embroiled in a year-long legal battle over the AI startup’s shift towards profitability. Musk claims that OpenAI is prioritizing corporate profit over its original mission to advance human knowledge. However, OpenAI CEO Sam Altman has denied these allegations, stating that the transition is necessary to raise capital and compete in the expensive AI race.
The judge’s decision comes weeks after Altman rejected a $97.4 billion takeover bid from Musk-led consortium. SoftBank Group is reportedly leading an upcoming funding round of up to $40 billion for OpenAI, valuing it at $300 billion.
OpenAI welcomed the ruling, describing the lawsuit as “always about competition.” Musk’s lawyer, Marc Toberoff, expressed optimism that a jury will confirm Altman accepted Musk’s charitable contributions were meant for public benefit rather than personal enrichment.
Source: https://www.reuters.com/legal/us-court-denies-musk-preliminary-injunction-his-suit-against-openai-2025-03-05