Tesla (TSLA) and SpaceX Chief Executive Elon Musk's bid to immediately halt Microsoft-backed (MSFT) OpenAI's effort to convert into a for-profit company was rejected by a federal judge on Tuesday, news outlets reported.
California Judge Yvonne Gonzalez Rogers said Musk failed to meet the burden required for a preliminary injunction to block the conversion but said she was ready to expedite a trial later this year, Reuters reported.
Musk, an OpenAI cofounder, sued the organization last year over claiming that it had misled him by offering itself as a nonprofit rather than a profitable venture, news outlets reported.
Microsoft, OpenAI, and Musk's lawyer did not immediately respond to MT Newswires' request for comment.
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