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Judge Rejects Musk’s Bid to Halt OpenAI’s For-Profit Shift, Fast-Tracks Trial

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A U.S. judge has denied Elon Musk’s request for a preliminary injunction to pause OpenAI’s transition to a for-profit model. However, U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California, fast-tracked the case, scheduling a trial for the fall of this year. Musk, the co-founder of OpenAI, has been in a year-long legal dispute with the organization, accusing it of abandoning its original mission to develop artificial intelligence for the public good.

The judge determined that Musk did not meet the high legal threshold necessary to block OpenAI’s shift to a for-profit model. However, she emphasized the importance of resolving the case swiftly due to the potential public interest and harm if the transition were deemed unlawful. OpenAI’s leaders, including CEO Sam Altman, have denied Musk’s claims, arguing that the for-profit move is essential for raising capital and staying competitive in the high-stakes AI sector.

Musk’s legal team expressed satisfaction with the judge’s decision to fast-track the trial, which they argue will clarify whether Altman knowingly accepted Musk’s charitable contributions under the assumption they would be used for public benefit. OpenAI, which is backed by Microsoft, has framed the lawsuit as a competition-related dispute, as Musk launched a rival AI company, xAI, in 2023.

The ruling follows Musk’s failed attempt to acquire OpenAI, which rejected his $97.4 billion buyout offer. OpenAI’s valuation has also seen significant growth, with reports indicating that SoftBank is considering a funding round that could value the company at $300 billion, far surpassing the valuation of Musk’s xAI, which has been reported at $75 billion.

UK Drops Antitrust Probe into Microsoft and OpenAI Partnership

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The UK’s Competition and Markets Authority (CMA) has ended its investigation into Microsoft’s partnership with OpenAI, stating that the software giant does not have sufficient control over the AI company to warrant further scrutiny. The probe, which began due to concerns over antitrust issues, was focused on whether Microsoft’s involvement in OpenAI, which started with a $1 billion investment in 2019, gave it too much influence over the AI company.

Despite Microsoft acquiring material influence over OpenAI in 2019, the CMA concluded that it did not have de facto control over the company and, therefore, the partnership did not meet the criteria for a full investigation under UK merger control laws. However, the CMA made it clear that its conclusion should not be interpreted as ruling out any potential competition concerns from the ongoing partnership.

Microsoft welcomed the CMA’s decision, emphasizing that its partnership with OpenAI fosters competition, innovation, and the responsible development of artificial intelligence. The company also praised the CMA’s careful review of the commercial realities of the partnership.

The investigation into Microsoft’s ties with OpenAI is part of the CMA’s broader scrutiny of the growing relationships between major tech companies and AI startups. Other partnerships, such as those between Amazon and Anthropic, as well as Google-owner Alphabet and Anthropic, have also been under review, but none reached the threshold for deeper investigation.

The CMA recently gained additional powers to probe large tech firms deemed to have “strategic market status,” and it has already launched investigations into Apple and Google’s smartphone ecosystems and search services. However, analysts suggest that the recent appointment of Doug Gurr, a former Amazon executive, as interim chair of the CMA may signal a more lenient approach to future deal-making.

Reddit Misses Daily Visitor Estimates Due to Google Algorithm Change, Shares Drop

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Reddit (RDDT.N) fell short of market expectations for daily active unique visitors in the fourth quarter, impacted by a change in Google’s search algorithm that reduced its visibility in search results. This announcement sent Reddit’s shares tumbling 15% in after-hours trading on Wednesday.

The San Francisco-based company, which launched its IPO in March 2024, saw its stock surge nearly five-fold last year. However, volatility with Google search at the end of the fourth quarter affected traffic from “logged-out users”—those who browse without signing in, CEO Steve Huffman said in a letter to shareholders. Despite the setback, Huffman noted that traffic from Google search has since recovered in the first quarter of 2025.

Reddit’s daily active unique visitors grew by 39% to 101.7 million for the quarter ending December 31, but this fell short of analysts’ average estimate of 103.3 million, according to LSEG data. Growth has also slowed sequentially.

“Reddit shares are down due to missed expectations on daily active users, but it’s not a reason to lose faith in the company,” said Jeremy Goldman, senior director of briefings at eMarketer. He added that Reddit’s international expansion and AI advancements could help it become a digital advertising powerhouse.

Reddit has been leveraging AI deals with Alphabet’s Google and Microsoft-backed OpenAI, as well as conversation placement ads—where brands can advertise directly within subreddit discussions. These factors have helped Reddit forecast first-quarter revenue between $360 million and $370 million, surpassing analysts’ average estimate of $358.1 million.

The company reported fourth-quarter revenue of $427.7 million, beating the $405.3 million estimate, largely driven by holiday season ad spending. Profit per share came in at 36 cents, surpassing the 25-cent estimate. Reddit’s global average revenue per user increased by 23% to $4.21.

Additionally, Huffman mentioned ongoing discussions for data licensing deals with major industry players.

Google has yet to respond to inquiries about its algorithm changes.