Elon Musk’s claims of harm from OpenAI are a ’stretch’ but judge welcomes possible trial

Elon Musk’s lawyers faced off with OpenAI in court.

Elon Musk's lawyers faced off with OpenAI in court Tuesday as a federal judge weighed the billionaire's request for a court order that would block the ChatGPT maker from converting itself to a for-profit company.

U.S. District Judge Yvonne Gonzalez Rogers said it was a “stretch” for Musk to claim he will be irreparably harmed if she doesn't intervene to stop OpenAI from moving forward with its transition from a nonprofit research laboratory to a for-profit corporation.

But the judge also raised concerns about OpenAI and its relationship with business partner Microsoft and said she wouldn't stop the case from moving to trial as soon as next year so a jury can decide.

“It is plausible that what Mr. Musk is saying is true. We’ll find out. He’ll sit on the stand,” she said.

Musk, an early OpenAI investor and board member, sued the artificial intelligence company last year, first in a California state court and later in federal court, alleging it had betrayed its founding aims as a nonprofit research lab benefiting the public good. Musk had invested about $45 million in the startup from its founding until 2018, his lawyer said Tuesday.

Musk escalated the legal dispute late last year, adding new claims and defendants and asking for a court order that would stop OpenAI’s plans to convert itself into a for-profit business more fully. Musk also added his own AI company, xAI, as a plaintiff.

Also targeted by Musk's lawsuit is OpenAI's close business partner Microsoft and tech entrepreneur Reid Hoffman, a former OpenAI board member who also sits on Microsoft's board.