OAKLAND, Calif. (AP) 鈥� A federal judge has denied Elon Musk's request for a court order blocking OpenAI from converting itself to a but said she could expedite a trial to consider and its CEO.
U.S. District Judge Yvonne Gonzalez Rogers ruled late Tuesday that 鈥淢usk has not demonstrated likelihood of success on the merits鈥� in his request for a preliminary injunction. She offered to hold a trial in her California courtroom as soon as this fall, 鈥済iven the public interest at stake and potential for harm if a conversion contrary to law occurred.鈥�
Musk, an early OpenAI investor, began a legal offensive against the ChatGPT maker and CEO Sam Altman a year ago, over what he said was the betrayal of its .
He escalated the legal dispute late last year, adding new claims and defendants, including Microsoft, and asking for a court order that would stop OpenAI鈥檚 plans to convert itself into a for-profit business. Musk also added his own AI company, xAI, as a plaintiff, claiming that OpenAI was unfairly stifling business competition.
He and a group of investors more recently made an to buy a controlling stake in the nonprofit 鈥� a move that undermined Musk鈥檚 鈥渃laim of irreparable harm,鈥� the judge wrote.
OpenAI said it welcomed the court鈥檚 decision.
鈥淭his has always been about competition,鈥� a statement from the company said. 鈥淓lon鈥檚 own emails show that he wanted to merge a for-profit OpenAI into Tesla. That would have been great for his personal benefit, but not for our mission or U.S. interests.鈥�
Musk alleges in the lawsuit that the companies are violating the terms of his foundational contributions to the charity. He had invested about $45 million in the startup from its founding until 2018, his lawyer has said.
Musk attorney Marc Toberoff said in a statement late Tuesday that he is pleased that the court offered an expedited trial on the core claims.
"We look forward to a jury confirming that Altman accepted Musk鈥檚 charitable contributions knowing full well they had to be used for the public鈥檚 benefit rather than his own enrichment,鈥� Toberoff said.
Gonzalez Rogers in a hearing last month called it a 鈥� 鈥� to Musk, and she called the case 鈥渂illionaires vs. billionaires.鈥� She questioned why Musk invested tens of millions in OpenAI without a written contract. Toberoff responded that it was because the relationship between Altman and Musk at the time was 鈥渂uilt on trust鈥� and the two were very close.
鈥淭hat is just a lot of money鈥� to invest 鈥渙n a handshake,鈥� the judge said.
The dispute has roots in a 2017 internal power struggle at the fledgling startup that led to Altman becoming OpenAI鈥檚 CEO.
Emails disclosed by OpenAI show Musk had also sought to be CEO and grew frustrated after two other OpenAI co-founders said he would hold too much power as a major shareholder and chief executive if the startup succeeded in its goal to achieve better-than-human AI known as . Musk has about how advanced forms of AI could threaten humanity.
Altman eventually succeeded in becoming CEO and has remained so except for a period in 2023 when he was fired days later after the board that ousted him was replaced.
Gonzalez Rogers, appointed by then-President Barack Obama in 2011, has handled a number of tech industry cases including Apple鈥檚 , though she said last month that Musk鈥檚 case is 鈥渘othing like鈥� that one. That case was also the last time she granted a preliminary injunction, eight months before the case went to trial.
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O'Brien reported from Providence, Rhode Island.
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Matt O'brien And Barbara Ortutay, The Associated Press
