A federal judge ruled against Elon Musk's attempt to block OpenAI's transformation into a for-profit entity, citing a lack of evidence for irreparable harm. However, U.S. District Judge Yvonne Gonzalez Rogers indicated that an expedited trial could take place in the fall regarding Musk's core allegations, particularly about breach of contract. The ruling emphasizes Musk's prior financial commitment to OpenAI and raises questions about the absence of a formal contract. OpenAI stated that the case reflects competition and Musk's potential conflict of interest in wanting to merge OpenAI with Tesla.
"Musk has not demonstrated likelihood of success on the merits" in his request for a preliminary injunction, as ruled by U.S. District Judge Yvonne Gonzalez Rogers.
Judge Gonzales Rogers had previously questioned why the Tesla and SpaceX CEO invested tens of millions in OpenAI without a written contract, stating, 'That is just a lot of money to invest on a handshake.'
OpenAI has welcomed the court's decision, stating, 'Elon's own emails show that he wanted to merge a for-profit OpenAI into Tesla. That would have been great for his personal benefit.'
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