Musk’s Claim against OpenAI May go to Trial In Part, Judge Says

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 relocation required for capital

Nonprofit to for-profit conversion rare, professional says

(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, Calif., wiki.rrtn.org Feb 4 (Reuters) – A federal judge said on Tuesday that parts of claim against OpenAI to stop its conversion to a for-profit entity might go to trial, including that the Tesla CEO will have to appear in court and affirm.

„Something is going to trial in this case,“ U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California, said early in the court session.

„(Elon Musk will) sit on the stand, present it to a jury, and a jury will choose who is right.“ Rogers was thinking about Musk’s recent demand for an initial injunction to block OpenAI’s conversion before going to trial, users.atw.hu the most recent move in a grudge match between the world’s wealthiest individual and OpenAI CEO Sam Altman that is playing out publicly in court.

Rogers did not choose whether to issue the injunction Tuesday, however at one point recommended that Musk’s legal group had not presented enough evidence for her to issue the injunction, asteroidsathome.net and suggested she may hold an evidentiary hearing, where both sides could provide witnesses and proof. The last time Rogers supplied a preliminary injunction remained in Epic Games’ case against Apple in May 2021.

Musk cofounded OpenAI with Altman in 2015, however left before the company took off and subsequently established the completing AI start-up xAI in 2023. OpenAI is now attempting to shift from a not-for-profit into a for-profit entity, which it says it requires to do to secure the capital needed to establish the best expert system models. Last year, Musk filed a claim against OpenAI and Altman, setiathome.berkeley.edu 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 focused on making cash. He later on broadened the claim to add federal antitrust and other claims, and in December asked the judge commanding the case to stop OpenAI from transitioning to a for-profit.

In reaction to Musk ´ s claim, forum.pinoo.com.tr OpenAI has said it will move to dismiss Musk ´ s claims and that Musk „ought to be contending in the market rather than the courtroom.“ The stakes on OpenAI’s corporate transition have actually now intensified, as OpenAI ´ s last fundraising round of $6.6 billion and a new round of up to $25 billion under discussion with SoftBank are conditioned on the company restructuring to get rid of the nonprofit ´ s manage.

During the hearing, OpenAI’s lawyers said the factor to permit OpenAI to become a for-profit entity is since it would be needed to assist in the mission of the nonprofit.

Such a restructuring would be extremely unusual, said Rose Chan Loui, executive director of the UCLA Law Center for Philanthropy and Nonprofits. Nonprofit conversions to for-profits have historically been for healthcare organizations like healthcare facilities, not endeavor capital-backed business, she said. (Reporting by Anna Tong in Oakland and Akash Sriram in Bengaluru, Editing by Marguerita Choy)