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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.

Nvidia-Backed Cloud Firm CoreWeave to Acquire AI Platform Weights & Biases

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CoreWeave, a cloud infrastructure provider backed by Nvidia, announced on Tuesday its acquisition of the AI developer platform Weights & Biases. The move is part of CoreWeave’s strategy to expand its cloud offerings ahead of its upcoming IPO.

The acquisition will integrate CoreWeave’s infrastructure and managed cloud services with Weights & Biases’ AI platform, which is widely used for training, evaluating, and monitoring AI models. Prominent technology companies such as OpenAI and Meta utilize Weights & Biases’ platform to build and deploy AI applications.

While the financial terms of the deal were not disclosed, sources familiar with the transaction told The Information that the acquisition could be valued at approximately $1.7 billion.

CoreWeave, based in Roseland, New Jersey, has seen significant growth, reporting an eight-fold increase in revenue for 2024. The company is also advancing with its plans to list publicly later this year, with expectations to achieve a valuation exceeding $35 billion in its New York flotation.

CoreWeave’s customer base includes major players like hedge fund Jane Street, as well as tech giants Meta, IBM, and Microsoft.