A federal court recently rejected Elon Musk's request for a preliminary injunction against OpenAI, finding that he had not shown a "likelihood of success on the merits" and dismissing several of his claims outright. The decision moves the lawsuit closer to dismissal.
OpenAI's filing notes that the non‑profit arm is staying put, contrary to Musk's claim that a "conversion" is imminent. The company says it will keep the non‑profit as a core part of its mission and give it a sizable stake in a proposed public‑benefit corporation.
Background
In 2017, Musk pushed for an initial $1 billion funding commitment from the OpenAI non‑profit, even offering to cover any shortfall. In reality, the non‑profit raised less than $45 million from Musk and more than $90 million from other donors【2†source】. When the founders realized that building AGI would require billions of dollars per year, they agreed that a for‑profit entity would be necessary. Musk wanted majority equity, initial board control, and the CEO seat, but OpenAI balked at giving any individual absolute control【2†source】.
Musk later suggested merging OpenAI into Tesla, calling it "the only path that could even hope to hold a candle to Google"【2†source】. OpenAI declined, and Musk left in early 2018, saying the probability of success was zero. In December 2018 he warned that "even raising several hundred million won't be enough. This needs billions per year immediately or forget it."【2†source】
Ongoing work
Since then, OpenAI has continued building widely available tools. Hundreds of millions of users access a free tier each day. Governments and NGOs are using the technology for public‑good projects, such as accelerating Albania's EU accession, reducing agricultural extension costs in Kenya and India by a factor of 100, simplifying surgical consent forms for a major Rhode Island health provider, and preserving the Icelandic language.
Financial picture
Musk's $1 billion pledge never materialized. OpenAI has raised over $135 million from a mix of donors and bridge funding from Reid Hoffman【2†source】. The court's rejection means Musk cannot force OpenAI to hand over that capital or to merge with his companies.
OpenAI's legal team emphasized that the non‑profit will not be sold or weakened; instead, it will be strengthened and hold a significant stake in the new public‑benefit corporation【1†source】.
The lawsuit remains pending, and OpenAI expects the remaining claims to be addressed in the coming months.
Sources