[Christian Harris]

A federal judge has denied Elon Musk’s request for a preliminary injunction to halt OpenAI’s structural changes, while expediting the trial and dismissing several of Musk’s claims entirely, according to a March 4, 2025 ruling.

The decision marks a pivotal moment in the high-stakes legal battle between Musk and OpenAI, with significant implications for the company’s future and the broader AI industry.

The judge ruled that Musk did not meet the “high burden” required for a preliminary injunction, but allowed other aspects of the lawsuit to proceed with an expedited trial set for this fall.

This decision underscores the court’s recognition of the case’s urgency and its potential impact on OpenAI’s operations and the AI sector at large.

Internal emails cited by OpenAI reportedly reveal that Musk once proposed merging OpenAI into Tesla as a for-profit entity—a stance that contradicts his current legal position.

This revelation complicates Musk’s claims that OpenAI has deviated from its original mission of developing AI for the benefit of humanity rather than corporate profits.

Musk, who co-founded OpenAI in 2015 but left in 2018, sued the company and its CEO, Sam Altman, last year, alleging that OpenAI’s shift to a for-profit model betrays its founding principles.

OpenAI and Altman have vehemently denied these accusations, arguing that the nonprofit remains intact and that any restructuring of for-profit subsidiaries is necessary to secure funding and remain competitive in the capital-intensive AI industry.

The lawsuit’s outcome could reshape OpenAI’s trajectory, particularly with a rumoured $40 billion investment from SoftBank contingent on the company’s pivot to a for-profit model.

OpenAI’s last funding round raised $6.6 billion at a $157 billion valuation, highlighting the immense financial stakes involved.

For investors, the case raises critical questions about the balance between profit motives and ethical AI development.

A ruling in OpenAI’s favour could validate the for-profit model, potentially unlocking further investment and accelerating innovation.

Conversely, a win for Musk could reignite debates about AI ethics and the role of corporate interests in shaping the technology’s future.

The trial’s expedited timeline suggests a resolution could come sooner than expected, providing clarity for OpenAI’s stakeholders and the broader AI ecosystem.

However, the legal battle also underscores the tensions between competition and collaboration in the race to advance AI, with Musk’s rival venture, xAI, seeking $10 billion in funding to compete with OpenAI.

What’s your take—do you think OpenAI’s for-profit pivot will drive innovation, or does it risk compromising the ethical foundations of AI development? 🤔📈

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[LNBX]

Will xAI likely IPO one day? Do you know if Musk plans to go public?

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[Christian Harris]

Elon Musk’s xAI has shown significant growth, raising $6 billion in 2024 and now targeting a $10 billion funding round at a $75 billion valuation.

Despite this rapid expansion, an IPO seems unlikely in the near term.

Musk has a history of keeping his companies private, as seen with SpaceX, The Boring Company, and Neuralink, allowing him greater control and flexibility.

xAI’s current focus appears to be on scaling its AI capabilities, including the development of its supercomputer, Colossus, and enhancing its Grok chatbot.

The company’s revenue strategy is still unclear, with much of its projected $100 million in 2025 revenue expected to come from Musk’s other ventures like X (formerly Twitter).

While the AI sector is booming, xAI faces stiff competition from OpenAI, Google, and Anthropic, and regulatory uncertainties could further delay any public offering.

For now, Musk seems to be prioritising private funding and strategic growth over going public.

If xAI did go public, would you invest? 🤔📈

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[Del]

It won’t go public any time soon, if at all. Musk doesn’t like relinquishing control. I would take a punt on it if it did though…

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