Elon Musk’s Legal Battle with OpenAI Inches Toward Trial as Judge Signals Partial Go-Ahead

A federal judge indicated that parts of Elon Musk’s lawsuit against OpenAI could proceed to trial, setting the stage for a high-profile legal showdown over the AI company’s transition to a for-profit structure.

During a court session in Oakland, California, U.S. District Judge Yvonne Gonzalez Rogers made it clear that Musk, the billionaire Tesla CEO, will have to take the stand. “Something is going to trial in this case,” she stated. “Elon Musk will sit on the stand, present it to a jury, and a jury will decide who is right.”

Musk, who co-founded OpenAI in 2015 alongside Sam Altman, has been locked in a public and legal battle with the AI company over its shift from a nonprofit to a for-profit entity. He argues that OpenAI’s original mission was to develop AI for the benefit of humanity, not to maximize profits. OpenAI, on the other hand, insists that restructuring is necessary to secure the capital needed for continued AI development.

The judge was reviewing Musk’s request for a preliminary injunction to halt OpenAI’s conversion before the case moves to trial. While she did not immediately rule on the injunction, she suggested Musk’s legal team had not presented sufficient evidence to justify such a move and hinted at the possibility of an evidentiary hearing where both sides could present testimony.

OpenAI’s shift to a for-profit model is tied to its massive fundraising efforts, including a $6.6 billion round completed last year and a potential $25 billion investment under discussion with SoftBank. The AI company argues that restructuring is essential to advancing its mission.

Nonprofit-to-for-profit conversions are rare, typically seen in healthcare organizations rather than tech companies, according to legal experts. This case could set a precedent for how mission-driven organizations navigate the intersection of philanthropy and business in the rapidly evolving AI landscape.

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