Judge Weighs In on Musk's Lawsuit Against OpenAI, Says For-Profit Transition Likely to Proceed

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Judge Weighs In on Musk's Lawsuit Against OpenAI, Says For-Profit Transition Likely to Proceed
ELON MUSKOPENAISAM ALTMAN
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A federal judge heard arguments in a lawsuit filed by Elon Musk against OpenAI, the artificial intelligence company he co-founded. While acknowledging the dispute between Musk and OpenAI CEO Sam Altman, the judge suggested she is unlikely to halt OpenAI’s planned transition to a for-profit structure.

A federal judge weighed in Tuesday on a long-brewing legal feud between billionaires Elon Musk and Sam Altman over OpenAI, the company they co-founded, suggesting she’s unlikely to halt the company’s plan to restructure for now. Musk, a top ally to President Donald Trump and CEO of Tesla and SpaceX, is looking to stop the Microsoft-backed artificial intelligence AI developer from becoming a for-profit company.

” OpenAI began its operations as a nonprofit research lab before it transitioned to a so-called capped profit model in 2019, which allowed it to function more like a startup, with the nonprofit arm controlling its for-profit arm.

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