A judge this week blocked Elon Musk’s attempt to keep OpenAI from transitioning to a for-profit model but left the door open for a later trial.
Oakland, California, U.S. District Judge Yvonne Gonzalez Rogers on Tuesday rejected Mr. Musk’s move, ruling that the billionaire didn’t meet the “high burden” needed for a preliminary injunction.
However, Judge Rogers didn’t dismiss the suit, saying she hoped to resolve the case quickly in the fall due to public interest.
Lawyers for OpenAI and Mr. Musk said they were pleased with the decision.
Tuesday’s ruling adds to the heated legal battle over the future of OpenAI, one of the most influential artificial intelligence companies in the world.
Mr. Musk, who co-founded the company in 2015 and left three years later, sued OpenAI last year for betraying its founding message. OpenAI was originally founded as a nonprofit organization, with the explicit goal of developing AI technology for the betterment of humanity. However, OpenAI has argued that it needs to transition to a for-profit model to keep up with competition in the AI space.
Mr. Musk has become openly critical of OpenAI and its leader, Sam Altman. Shortly after Mr. Musk filed suit against the company, it responded by releasing testimony claiming he was one of the first people at the company to suggest that OpenAI move away from a nonprofit model.
Last month, Mr. Musk, along with a group of like-minded investors, offered to purchase OpenAI for $97.4 billion. OpenAI rejected the offer, and Mr. Altman asserted that it was an attempt by Mr. Musk to slow down a competitor.
