Musk takes legal action against to obstruct 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 uncommon, specialist says
(Adds judge did not decide whether or not to the injunction in paragraph 5, OpenAi's lawyers' 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 halt its conversion to a for-profit entity may go to trial, oke.zone including 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, California, said early in the court session.
"(Elon Musk will) rest on the stand, present it to a jury, and a jury will decide who is right." Rogers was considering Musk's current demand for bybio.co an initial injunction to block OpenAI's conversion before going to trial, the current move in an animosity match between the world's richest individual and OpenAI CEO Sam Altman that is playing out openly in court.
Rogers did not decide whether to provide the injunction Tuesday, but at one point recommended that Musk's legal team had not provided enough proof for elearnportal.science her to provide the injunction, and showed she might 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, but left before the business took off and consequently founded the contending AI start-up xAI in 2023. OpenAI is now trying to shift from a nonprofit into a for-profit entity, which it says it requires to do to secure the capital needed to develop the finest expert system designs. Last year, Musk filed a claim against OpenAI and Altman, stating that OpenAI ´ s founders initially approached him to fund a not-for-profit concentrated on developing AI to benefit humankind, but that it is now concentrated on generating income. He later on expanded the claim to add 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 reaction to Musk ´ s claim, OpenAI has said it will relocate to dismiss Musk ´ s claims and that Musk "need to be competing in the marketplace 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 brand-new round of as much as $25 billion under discussion with SoftBank are conditioned on the company restructuring to eliminate the not-for-profit ´ s control.
During the hearing, OpenAI's legal representatives said the reason to permit OpenAI to become a for-profit entity is due to the fact that it would be required to facilitate the mission of the not-for-profit.
Such a restructuring would be highly uncommon, said Rose Chan Loui, executive director of the UCLA Law Center for Philanthropy and Nonprofits. Nonprofit conversions to for-profits have actually historically been for health care companies like medical facilities, not endeavor capital-backed companies, asteroidsathome.net she said. (Reporting by Anna Tong in Oakland and Akash Sriram in Bengaluru, Editing by Marguerita Choy)
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Musk's Claim against OpenAI May go to Trial In Part, Judge Says
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