Musk takes legal action against to block OpenAI's conversion to a for-profit structure
Musk cofounded OpenAI with Altman in 2015
OpenAI argues for-profit move needed for capital
Nonprofit to for-profit conversion rare, specialist states
(Adds judge did not choose whether to issue the injunction in paragraph 5, OpenAi's lawyers' comment in paragraph 13)
By Anna Tong and Akash Sriram
OAKLAND, wiki.vst.hs-furtwangen.de Calif., Feb 4 (Reuters) - A federal judge said on Tuesday that parts of Elon Musk's claim against OpenAI to stop its conversion to a for-profit entity might go to trial, adding that the Tesla CEO will need to appear in court and affirm.
"Something is going to trial in this case," U.S. District Judge Yvonne Gonzalez Rogers in Oakland, genbecle.com California, said early in the court session.
"(Elon Musk will) rest on the stand, present it to a jury, and a jury will choose who is right." Rogers was considering Musk's recent request for a preliminary injunction to block OpenAI's conversion before going to trial, the current relocation in a grudge match in between the world's richest person and OpenAI CEO Sam Altman that is playing out publicly in court.
Rogers did not decide whether or not to release the injunction Tuesday, annunciogratis.net however at one point suggested that Musk's legal team had actually not presented adequate proof for her to issue the injunction, and indicated she may hold an evidentiary hearing, where both sides could provide witnesses and evidence. The last time Rogers supplied an initial injunction remained in Epic Games' case against Apple in May 2021.
Musk cofounded OpenAI with Altman in 2015, but left before the company removed and consequently established the completing AI startup xAI in 2023. OpenAI is now attempting to transition from a nonprofit into a for-profit entity, which it states it needs to do to secure the capital required to the very best expert system models. Last year, Musk filed a claim against OpenAI and Altman, saying that OpenAI ´ s creators originally approached him to money a not-for-profit focused on developing AI to benefit mankind, however that it is now concentrated on making money. He later on expanded the claim to add federal antitrust and other claims, and in December asked the judge administering over the case to stop OpenAI from transitioning to a for-profit.
In action to Musk ´ s claim, OpenAI has said it will transfer to dismiss Musk ´ s claims and that Musk "ought to be competing in the marketplace rather than the courtroom." The stakes on OpenAI's business shift have now escalated, links.gtanet.com.br as OpenAI ´ s last fundraising round of $6.6 billion and asteroidsathome.net a new round of up to $25 billion under conversation with SoftBank are conditioned on the business reorganizing to remove the nonprofit ´ s control.
During the hearing, OpenAI's attorneys said the factor to enable OpenAI to end up being a for-profit entity is because it would be essential to help with the mission of the not-for-profit.
Such a restructuring would be extremely uncommon, said Rose Chan Loui, executive director of the UCLA Law Center for Philanthropy and Nonprofits. Nonprofit conversions to for-profits have historically been for health care companies like healthcare facilities, not venture capital-backed companies, she said. (Reporting by Anna Tong in Oakland and Akash Sriram in Bengaluru, Editing by Marguerita Choy)