A federal judge in Oakland, California, is unlikely to grant Elon Musk’s request to halt OpenAI’s plan to restructure into a for-profit company, following a legal battle between Musk and co-founder Sam Altman. The lawsuit accuses OpenAI of becoming a “closed source, profit-maximizer,” but the judge suggested Musk’s claims of irreparable harm are a stretch. The case revolves around the tension between two billionaires battling over the company they co-founded in 2015. Musk invested $45 million in OpenAI but had a falling out with Altman, leading him to launch his own rival AI company, xAI. U.S. companies are heavily investing in AI infrastructure, with Altman recently joining President Trump in announcing a $500 billion AI project. Musk’s attorney accuses OpenAI and Microsoft of limiting competition to create a monopoly-like situation, but OpenAI denies any such agreement. OpenAI is transitioning to a capped profit model to raise more capital and compete with major AI investors. Musk’s attorney argues that OpenAI’s change to a for-profit model stifles competition in the AI industry. Despite previous support for OpenAI’s for-profit transition, Musk is now taking legal action and will have the opportunity to present his case to a jury in trial. The judge has not made a ruling on Musk’s request for a preliminary injunction.
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