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Judge Denies Musk's Bid to Halt OpenAI's For-Profit Shift

Updated at:

3/20/2025

Edited and Reviewed by Hey It's AI editors

Musk failed to block OpenAI's for-profit move, but a trial is coming. Is this about AI’s future or just billionaire drama?

Judge Denies Musk's Bid to Halt OpenAI's For-Profit Shift

Judge Denies Musk's Bid to Halt OpenAI's For-Profit Shift

Well, folks, the tech world just got another plot twist. Elon Musk's attempt to throw a wrench into OpenAI's plans to go for-profit? Denied. But don't grab the popcorn just yet; the courtroom drama is far from over.

The Backstory: From Allies to Adversaries

Remember when Musk and Sam Altman were the dynamic duo behind OpenAI, aiming to develop AI for the greater good? Fast forward, and Musk's now waving legal papers, accusing OpenAI of straying from its noble mission. Talk about a plot twist worthy of a Netflix series.

The Courtroom Chronicles

So, Musk wanted a preliminary injunction to stop OpenAI's for-profit transformation. Judge Yvonne Gonzalez Rogers looked at the case and essentially said, Not so fast. She didn't see enough evidence to grant the injunction but did agree that the matter deserves a speedy trial. Mark your calendars for this fall; it's going to be a showdown.

Show Me the Money

Let's talk numbers. Musk and his investor buddies threw a whopping $97.4 billion offer at OpenAI. Altman's response? A polite no thank you. Meanwhile, whispers in the tech corridors suggest SoftBank might lead a $40 billion funding round for OpenAI, valuing the company at a cool $300 billion. Makes you wonder, is AI the new gold rush?

Rivalries and Realities

Beyond the courtroom, Musk's been busy with his own AI venture, xAI. Some say his legal moves are less about altruism and more about keeping the competition in check. Altman, on the other hand, is focused on OpenAI's growth, arguing that going for-profit is essential to stay competitive in the ever-expensive AI race.

What's Next?

As we await the trial, one can't help but ponder: Is this legal battle about preserving AI's original mission, or is it a high-stakes game of tech titans flexing their muscles? And more importantly, how will this tug-of-war shape the future of AI development?

So, dear readers, where do you stand? Is Musk the guardian of AI's noble cause, or is this just another episode of Billionaires Behaving Badly? Let's discuss.

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Elon Musk just hit a legal speed bump in his attempt to stop OpenAI's shift to a for-profit model. The judge denied his request for an injunction but fast-tracked the trial. Meanwhile, Musk's $97.4B offer got rejected, and OpenAI might snag $40B from SoftBank. Drama much?

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Microsoft is developing in-house AI reasoning models, known as MAI, to reduce reliance on OpenAI and enhance its AI capabilities. ([reuters.com](https://www.reuters.com/technology/artificial-intelligence/microsoft-developing-ai-reasoning-models-compete-with-openai-information-reports-2025-03-07/?utm_source=openai))

Microsoft MAI

Microsoft is developing in-house AI reasoning models, known as MAI, to reduce reliance on OpenAI and enhance its AI capabilities. ([reuters.com](https://www.reuters.com/technology/artificial-intelligence/microsoft-developing-ai-reasoning-models-compete-with-openai-information-reports-2025-03-07/?utm_source=openai))

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