Musk fires again
Elon Musk’s legal battle against OpenAI has entered a new phase after a U.S. judge denied his request for an immediate injunction to halt the company’s transition into a for-profit entity.
While the ruling allows OpenAI to continue operating under its current structure, the case is far from over, with the court granting a fast-tracked trial set for the fall of 2025.
Musk’s lawsuit, filed earlier this year, accuses OpenAI of abandoning its original mission to develop artificial intelligence for public benefit in favor of private investors.
OpenAI and its CEO, Sam Altman, have rejected Musk’s allegations, arguing instead that transitioning to a for-profit model is necessary to raise the substantial capital required to compete effectively in the costly AI industry.
The company also insists Musk’s lawsuit is driven primarily by competitive motivations rather than genuine ethical concerns.
U.S. District Judge Yvonne Gonzalez Rogers ruled that Musk’s evidence — primarily internal emails — failed to meet the legal threshold for an injunction. However, she acknowledged that the case raises important legal questions regarding OpenAI’s transition.
“Given the public interest at stake and potential for harm if a conversion contrary to law occurred, the court is prepared to expedite trial to the fall of 2025 solely on that claim and potentially the interrelated contract-based claims,” she wrote.
The ruling comes amid high-stakes financial maneuvering. Recently, Altman outright rejected a $97.4 billion takeover bid from Musk and his associates, responding with a blunt “no thank you.”Meanwhile, reports indicate that SoftBank is in talks to lead a $40 billion investment round that could push OpenAI’s post-money valuation to $300 billion — dwarfing the $75 billion valuation that Musk’s rival AI startup, xAI, is reportedly seeking.
Despite the setback, Musk’s legal team remains optimistic. “We look forward to a jury confirming that Altman accepted Musk’s charitable contributions knowing full well they had to be used for the public’s benefit rather than his own enrichment,” said Marc Toberoff, Musk’s attorney.
