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.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.