Rejected! Judge Slams the Breaks on Musk’s Attempt to Block OpenAI’s For-Profit Transition

A federal judge ruled that the Tesla CEO didn't provide enough evidence to win an injunction to stop the transition.

Mar 5, 2025
Rejected! Judge Slams the Breaks on Musk’s Attempt to Block OpenAI’s For-Profit Transition
Elon Musk

A federal judge in Northern California has ruled against Elon Musk's motion for an injunction that would have halted OpenAI’s planned transition into a for-profit company. 

According to reports from Bloomberg, Musk failed to provide enough evidence necessary for an injunction, U.S. District Court Judge Yvonne Gonzalez Rogers ruled Tuesday. However, Rogers said the court is prepared to hold an expedited trial solely based on the claim that OpenAI’s conversion plan is unlawful. She noted that “irreparable harm is incurred when the public’s money is used to fund a non-profit’s conversion into a for-profit.”

Twist and Turns 

The ruling is the latest plot in Musk's lawsuit against OpenAI and its CEO Sam Altman, which accuses the ChatGPT maker of abandoning its original nonprofit mission to make the benefits of AI research available to all. 

Just a few weeks ago, Elon Musk ignited a debate by submitting an unsolicited takeover bid to purchase OpenAI for $97.4 billion, an offer OpenAI’s board unanimously rejected. Still, the bid may create future headaches for OpenAI in its plan to adopt a more conventional corporate structure.