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 unusual, professional says
(Adds judge did not decide whether to issue the injunction in paragraph 5, OpenAi's attorneys' remark in paragraph 13)
By Anna Tong and Akash Sriram
OAKLAND, 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 may go to trial, adding that the Tesla CEO will have 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 decide who is right." Rogers was considering Musk's current request for an initial injunction to obstruct OpenAI's conversion before going to trial, e.bike.free.fr the current move in a grudge match between the world's richest person and OpenAI CEO Sam Altman that is playing out openly in court.
Rogers did not decide whether to provide the injunction Tuesday, however at one point suggested that Musk's legal team had not presented adequate proof for her to provide the injunction, and indicated she may hold an evidentiary hearing, where both sides might provide witnesses and proof. The last time Rogers provided an initial injunction remained in Epic Games' case against Apple in May 2021.
Musk cofounded OpenAI with Altman in 2015, but left before the business removed and subsequently founded the competing 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 needs to do to protect the capital required to establish the very best expert system designs. Last year, Musk submitted a claim against OpenAI and Altman, saying that OpenAI ´ s founders initially approached him to fund a nonprofit focused on establishing AI to benefit mankind, but that it is now focused on earning money. He later expanded 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 response to Musk ´ s claim, mariskamast.net OpenAI has said it will relocate to dismiss Musk ´ s claims and that Musk "need to be contending in the marketplace instead of the courtroom." The stakes on OpenAI's corporate transition have actually now escalated, as OpenAI ´ s last fundraising round of $6.6 billion and oke.zone a brand-new round of as much as $25 billion under discussion with SoftBank are conditioned on the company reorganizing to get rid of the nonprofit ´ s manage.
During the hearing, OpenAI's attorneys said the factor wiki.rolandradio.net to allow OpenAI to become a for-profit entity is due to the fact that it would be necessary to facilitate the objective of the nonprofit.
Such a restructuring would be 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 healthcare companies like health centers, not endeavor capital-backed business, kenpoguy.com she said. (Reporting by Anna Tong in Oakland and Akash Sriram in Bengaluru, Editing by Marguerita Choy)