Judge denies Elon Musk’s request to block OpenAI for-profit conversion but welcomes trial
OAKLAND, Calif. — A federal judge has denied Elon Musk’s request for a court order blocking OpenAI from converting itself to a for-profit company but said she could expedite a trial to consider Musk’s claims against the ChatGPT maker and its CEO. She offered to hold a trial in her California courtroom as soon as this fall, “given the public interest at stake and potential for harm if a conversion contrary to law occurred.” Musk, an early OpenAI investor, began a legal offensive against the ChatGPT maker and CEO Sam Altman a year ago, suing for breach of contract over what he said was the betrayal of its founding aims as a nonprofit. He and a group of investors more recently made an unsolicited $97.4 billion bid to buy a controlling stake in the nonprofit — a move that undermined Musk’s “claim of irreparable harm,” the judge wrote. “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,” Toberoff said.
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