Legal Clash: Elon Musk vs. OpenAI's Profit Shift

A U.S. judge denied Elon Musk's request to pause OpenAI’s shift to a for-profit model but approved a fast-track trial. The legal battle centers on OpenAI's deviation from its original mission. OpenAI, supported by Microsoft, plans a sizable funding round, countering Musk's competitive moves.

In a significant decision on Tuesday, a U.S. judge rejected billionaire Elon Musk's attempt to halt OpenAI's shift to a for-profit model, a move Musk claims deviates from its original humanitarian mission. The court, however, agreed to expedite the lawsuit, underscoring the high stakes involved amid AI industry upheavals.

The legal confrontation, rooted in Musk's allegations that OpenAI's profit-driven path violates philanthropic intentions, sees OpenAI and its CEO Sam Altman defend the shift as necessary to secure funding and remain competitive. OpenAI's chief backer, Microsoft, is yet to comment on the development.

The ruling arrives shortly after Altman dismissed a $97.4 billion takeover proposal led by Musk. Meanwhile, SoftBank Group's potential $40 billion investment in OpenAI reflects the intense financial and competitive dynamics at play, adding pressure to Musk's xAI, a rival enterprise.

(With inputs from agencies.)