Elon Musk's legal battle with OpenAI has seen new developments in a U.S. federal court recently. Musk is trying to prevent OpenAI, which he helped found a decade ago, from transforming into a traditional for-profit company, but his request faced setbacks in court. Judge Yvonne Gonzalez Rogers stated during a hearing in Oakland, California, that she was unwilling to issue an injunction in this ongoing dispute that has lasted for months.
Musk's attorney argued in court that OpenAI's restructuring could cause "irreparable harm" to Musk, but Rogers questioned this claim, suggesting it was somewhat far-fetched. She emphasized that it is not appropriate to block OpenAI's plans for an extended period in the rapidly evolving AI industry. The judge pointed out that the last time she issued a preliminary injunction was in 2021 during the Epic vs. Apple lawsuit, indicating her cautious approach to similar cases.
Although the judge did not issue a formal order immediately, she indicated that she would allow Musk to sue OpenAI over certain allegations and might require him to testify. Musk accuses OpenAI of entering into a $13 billion investment deal with Microsoft after he stepped down from the board in 2018, straying from its original charitable mission and engaging in anti-competitive behavior.
OpenAI responded by stating that Musk's accusations are baseless and constitute harassment against the company. As the conflict escalates, OpenAI has released a series of emails and texts showing that Musk had previously supported the company adopting a more traditional corporate structure, reflecting the complexity of the case.
Analysts believe this lawsuit may not enter formal proceedings until the end of 2026 or 2027, which means Musk's startup xAI will face even more significant challenges in financing and technological advancement. Since its establishment in 2023, xAI's valuation has grown to $50 billion, but the gap with OpenAI remains substantial.
As the case progresses, this "billionaire versus billionaire" battle may attract more attention and discussion in the coming months, and the fate of Musk and OpenAI remains uncertain.
