Elon Musk’s attempt to prevent OpenAI from changing its structure to a for-profit model was denied by a US judge on March 4, 2025.
The ruling came after Musk filed a lawsuit claiming that OpenAI violated antitrust laws and broke the trust he placed in the company as one of its co-founders.
The court found that Musk and his company, xAI, did not prove that halting the transition was necessary.
Musk’s legal team argued that he had supported OpenAI under the condition that it would remain a nonprofit, pointing to email exchanges as evidence.
However, the judge questioned whether these communications were sufficient to form a legal contract.
The decision allows OpenAI to proceed with its shift to a for-profit organization, a move that CEO Sam Altman believes is necessary for the company’s growth.
This development adds to the ongoing tension between Musk and Altman, who were both part of the original team that founded OpenAI in 2015.
Musk had also attempted to buy OpenAI for $97.4 billion, but the board rejected the offer.
OpenAI’s current model combines a nonprofit structure with a profit-generating subsidiary, and the change to a fully for-profit approach is aimed at attracting investors and ensuring the company’s long-term stability.
