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OAKLAND, Calif. (AP) - Elon Musk's legal representatives took on with OpenAI in court Tuesday as a federal judge weighed the billionaire's ask for a court order that would obstruct the ChatGPT maker from converting itself to a for-profit company.

U.S. District Judge Yvonne Gonzalez Rogers said it was a "stretch" for Musk to claim he will be irreparably damaged if she does not intervene to stop OpenAI from progressing with its transition from a not-for-profit research study lab to a for-profit corporation.

But the judge also raised issues about OpenAI and its relationship with service partner Microsoft and said she wouldn't stop the case from transferring to trial as soon as next year so a jury can decide.

"It is possible that what Mr. Musk is stating holds true. We ´ ll learn. He ´ ll rest on the stand," she said.

Musk, an early OpenAI financier and opensourcebridge.science board member, took legal action against the synthetic intelligence company in 2015, first in a California state court and later on in federal court, alleging it had betrayed its starting aims as a not-for-profit research study lab benefiting the public excellent. Musk had actually invested about $45 million in the start-up from its starting till 2018, his legal representative said Tuesday.

Musk the legal conflict late last year, adding new claims and offenders and requesting for a court order that would stop OpenAI ´ s plans to convert itself into a for-profit business more completely. Musk likewise added his own AI company, xAI, as a plaintiff.

Also targeted by Musk's claim is OpenAI's close business partner Microsoft and tech entrepreneur Reid Hoffman, a previous OpenAI board member who likewise sits on Microsoft's board.

Gonzalez Rogers said she has a high bar for authorizing the type of preliminary injunction that Musk desires however hasn't yet ruled on the demand. She did state she had "significant issues" with 2 individuals linked to Microsoft on OpenAI's board - Hoffman and longtime Microsoft executive Deanna Templeton, users.atw.hu who was a "non-voting observer."

"So you want me to think that she was sitting there listening to all the discussions and not informing any person? What would the point be for her to sit there and listen to everybody, if not to communicate what she was listening? There would be no point for her to be there, which is why she in fact needs to not exist," she said.

Hoffman, a co-founder of LinkedIn, has actually been on Microsoft ´ s board considering that quickly after the tech giant bought the job networking website. He stepped down from OpenAI's board in 2023 to prevent conflicts with his AI start-up, Inflection.

Templeton, who Musk also named as an accused, was included as a non-voting member of OpenAI ´ s board in the after-effects of Altman ´ s ouster after Microsoft CEO Satya Nadella sought more stability on the board. But months later, she was dropped from the OpenAI board as U.S. antitrust enforcers were revealing issues about such arrangements on business boards.

The judge has actually handled a number of tech market cases consisting of Apple's battle with Epic Games, though she said Tuesday that Musk's case is "absolutely nothing like" that one. That case was also the last time she approved an initial injunction, in 2020, eight months before the case went to trial.

Then-President Barack Obama appointed Gonzalez Rogers to the federal bench in 2011.

Tuesday's hearing was initially set for January but was held off after Musk's attorney Marc Toberoff said his house was destroyed in the Pacific Palisades wildfire.

Musk, who did not participate in the hearing, has alleged in the claim that the business are breaching the terms of his fundamental contributions to the charity. Judge Gonzalez Rogers called it a "stretch" to claim "irreversible harm" to Musk, and called the case "billionaires vs. billionaires." She questioned why Musk invested tens of millions in OpenAI without a written contract. Toberoff said it was because the relationship between Altman and Musk at the time was "constructed on trust" and the 2 were extremely close.

"That is simply a lot of cash" to invest "on a handshake," the judge said.

OpenAI has said Musk ´ s asked for court order would "incapacitate OpenAI ´ s service"and mission to the benefit of Musk and his own AI company and is based on "improbable" legal claims.

At the heart of the dispute is a 2017 internal power battle at the fledgling startup that led to Altman becoming OpenAI ´ s CEO

. Emails disclosed by OpenAI show Musk had actually also sought to be CEO and grew disappointed after 2 other OpenAI co-founders said he would hold excessive power as a major shareholder and president if the start-up succeeded in its objective to attain better-than-human AI called artificial general intelligence, or AGI. Musk has long voiced issues about how advanced types of AI could threaten humankind.

Altman eventually prospered in ending up being CEO and has remained so except for a duration in 2023 when he was fired and then reinstated days later on after the board that ousted him was changed.

OpenAI has actually looked for to demonstrate Musk ´ s early support for the idea of making OpenAI a for-profit company so it could raise money for the hardware and computer system power that AI needs.

Musk is not the only one challenging OpenAI's for-profit shift. Facebook and Instagram moms and dad Meta Platforms has asked California's attorney general of the United States to obstruct it, and the workplace of Delaware's attorney general of the United States has said it is evaluating the conversion.

It was not clear Tuesday when the case may go to trial. Musk's legal representatives at first said they would be ready by June after some back-and-forth with the 2 sides the judge indicated it probably will not be till June 2026 at the earliest, however likely early 2027.

O'Brien reported from Providence, Rhode Island.

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