Tesla NASDAQ:TSLA CEO Elon Musk's legal fight with OpenAI and Sam Altman is moving toward mediation after a federal judge appointed a mediator to help resolve the dispute.

Bloomberg reported that U.S. District Judge Yvonne Gonzalez Rogers appointed senior federal judge R. David Proctor to seek a just, speedy and inexpensive resolution in the AI-related battle.

The move follows a major setback for Musk in May, when a federal jury rejected his $150 billion lawsuit against OpenAI and Altman. The jury found that Musk had failed to bring the case within the required legal timeframe, leading the judge to dismiss his claims.

the case matters because it reflects the growing legal and competitive tension around AI leadership, funding and control. Musk has been trying to position his AI ventures as serious rivals to OpenAI, while OpenAI remains one of the most closely watched private companies in technology.