Billion-Dollar War Heads to Jury
LEAKED: The Damning Email That Could Destroy Elon Musk's OpenAI Lawsuit
Musk's AI dreams get a reality check: Judge is not buying his 'charity' claims.


A federal judge expressed skepticism Tuesday over Elon Musk's claims against OpenAI, suggesting he may face challenges in his bid to halt the AI company's plans to become a for-profit entity.
U.S. District Judge Yvonne Gonzalez Rogers characterized the case as "billionaires versus billionaires" during the Oakland, California hearing, stating it is "a stretch" for Musk and his AI company xAI to claim irreparable harm from OpenAI's restructuring plans.
Musk, who co-founded OpenAI in 2015 with a $45 million investment, has accused the Microsoft-backed AI developer of becoming a "closed source, profit-maximizer." His legal team argues that OpenAI and Microsoft have created monopoly-like conditions that violate the Sherman Antitrust Act.
"OpenAI is a charity where a tiny trickle goes to the charity. It all goes to the for-profit enterprise," Musk's attorney Marc Toberoff argued, noting that OpenAI controls approximately 70% of the market. He contended that the company, "in conjunction with Microsoft, is seeking to strangle their competitors in the crib."
OpenAI's defense team countered these claims, presenting evidence that Musk previously supported the company's transition to a for-profit model. According to emails released by OpenAI, Musk told Altman and others in late 2017 that "even raising several hundred million won't be enough. This needs billions per year immediately or forget it." Musk has not publicly addressed these allegations.
The dispute comes amid intensifying competition in AI development globally. Last month, OpenAI CEO Sam Altman joined President Trump at the White House to announce a $500 billion AI infrastructure project called "Stargate." Meanwhile, recent innovations from China have prompted increased investment in AI infrastructure by U.S. companies.
OpenAI announced plans in December to create a public benefit corporation, a for-profit entity designed to make a "positive impact" on society while pursuing artificial general intelligence. The move has drawn opposition from other tech giants, with Meta reportedly requesting California's Attorney General to block the conversion.
While Judge Gonzalez Rogers did not immediately rule on Musk's request for a preliminary injunction, she indicated the case would likely proceed to trial. "A jury will decide who is right," she stated, adding that Musk will have the opportunity to present his arguments directly to a jury.
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