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 uncommon, specialist states
(Adds judge did not choose whether to release the injunction in paragraph 5, OpenAi's lawyers' comment in paragraph 13)
By Anna Tong and Akash Sriram
OAKLAND, Calif., akropolistravel.com Feb 4 (Reuters) - A federal judge said on Tuesday that parts of Elon Musk's claim against OpenAI to halt its conversion to a for-profit entity might go to trial, adding that the Tesla CEO will need to appear in court and testify.
"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 considering Musk's current demand for a preliminary injunction to obstruct OpenAI's conversion before going to trial, the most current relocation in a grudge match between the world's wealthiest person and OpenAI CEO Sam Altman that is playing out publicly in court.
Rogers did not choose whether to provide the injunction Tuesday, akropolistravel.com but at one point recommended that Musk's legal team had not presented adequate proof for systemcheck-wiki.de her to provide the injunction, and indicated she may hold an evidentiary hearing, where both sides might present witnesses and proof. The last time Rogers offered 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 consequently established the contending AI startup xAI in 2023. OpenAI is now attempting to transition from a nonprofit into a for-profit entity, which it says it needs to do to protect the capital required to develop the best artificial intelligence designs. Last year, Musk filed a claim against OpenAI and it-viking.ch Altman, saying that OpenAI ´ s founders originally approached him to fund a nonprofit concentrated on establishing AI to benefit mankind, however that it is now focused on earning money. He later broadened the claim to include federal antitrust and other claims, and in December asked the judge presiding 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 which Musk "should be completing in the market rather than the courtroom." The stakes on OpenAI's business transition have actually now escalated, 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 business reorganizing to eliminate the not-for-profit ´ s manage.
During the hearing, said the factor to allow OpenAI to become a for-profit entity is since it would be needed to facilitate the objective of the nonprofit.
Such a restructuring would be highly unusual, said Rose Chan Loui, executive director of the UCLA Law Center for Philanthropy and Nonprofits. Nonprofit conversions to for-profits have traditionally been for healthcare organizations like health centers, not venture capital-backed business, she said. (Reporting by Anna Tong in Oakland and Akash Sriram in Bengaluru, Editing by Marguerita Choy)