“Legal Battle Between Tech Mogul and AI Company Unveiled”
A federal judge in Oakland, California has denied Elon Musk’s request for a court order to block OpenAI from converting to a for-profit company. The judge, Yvonne Gonzalez Rogers, stated that Musk did not show a likelihood of success on the merits for a preliminary injunction. However, she offered to expedite a trial to consider Musk’s claims against the ChatGPT maker and its CEO.
Musk, an early investor in OpenAI, initiated legal action a year ago, alleging breach of contract and betrayal of the nonprofit’s founding aims. He expanded the lawsuit last year, adding new claims and defendants, including Microsoft. Musk sought to halt OpenAI’s transition to a for-profit business and accused them of stifling competition unfairly.
OpenAI welcomed the court’s decision, emphasizing that the dispute was about competition. The company stated that Musk had aimed to merge a for-profit OpenAI into Tesla for personal benefit, rather than furthering their mission or U.S. interests.
Musk’s lawsuit alleges violations of the terms of his contributions to the charity, totaling around $45 million. His attorney expressed satisfaction with the court’s decision to expedite a trial on the core claims.
The dispute traces back to a power struggle within the startup in 2017, leading to Sam Altman becoming CEO of OpenAI. Musk, who had also sought the CEO position, expressed concerns about the potential risks of advanced AI technology. Altman has since remained CEO, except for a short period in 2023 when he was temporarily removed and then reinstated.
The judge, appointed by former President Barack Obama, has remarked on the significant amount of money Musk invested in OpenAI without a written contract, questioning the basis of the relationship between Musk and Altman.
O’Brien covered several tech industry lawsuits, such as Apple’s dispute with Epic Games. However, she noted that Musk’s case is fundamentally different from that particular one. The last time she issued a preliminary injunction was in connection with a case eight months prior to its trial. The report was filed from Providence, Rhode Island. The Associated Press and OpenAI have a licensing and technology agreement enabling OpenAI to access a portion of the AP’s text archives.
