spektr-m

1 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 needed for capital

Nonprofit to for-profit conversion uncommon, kigalilife.co.rw expert states

(Adds judge did not choose whether or not to provide the injunction in paragraph 5, OpenAi's attorneys' comment in paragraph 13)

By Anna Tong and Akash Sriram

OAKLAND, Calif., it-viking.ch 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, 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 choose who is right." Rogers was considering Musk's current ask for a preliminary injunction to block OpenAI's conversion before going to trial, the most recent relocation in an animosity match in between the world's richest individual and OpenAI CEO Sam Altman that is playing out openly in court.

Rogers did not decide whether or not to release the injunction Tuesday, but at one point recommended that Musk's legal team had not provided adequate evidence for her to provide the injunction, and indicated she may hold an evidentiary hearing, where both sides could provide witnesses and evidence. 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, however left before the company took off and subsequently established the competing AI start-up xAI in 2023. OpenAI is now attempting to transition from a nonprofit into a for-profit entity, which it states it requires to do to secure the capital needed to develop the finest synthetic intelligence models. Last year, a claim against OpenAI and Altman, saying that OpenAI ´ s founders originally approached him to money a not-for-profit concentrated on establishing AI to benefit humanity, however that it is now concentrated on generating income. He later broadened the claim to include federal antitrust and systemcheck-wiki.de other claims, and lovewiki.faith in December asked the judge administering over the case to stop OpenAI from transitioning to a for-profit.

In action to Musk ´ s claim, kenpoguy.com OpenAI has said it will transfer to dismiss Musk ´ s claims which Musk "need to be completing in the marketplace instead of the courtroom." The stakes on OpenAI's corporate shift have actually now intensified, as OpenAI ´ s last fundraising round of $6.6 billion and kigalilife.co.rw a new round of up to $25 billion under discussion with SoftBank are conditioned on the company reorganizing to remove the not-for-profit ´ s control.

During the hearing, OpenAI's attorneys said the factor to permit OpenAI to end up being a for-profit entity is because it would be needed to help with the mission of the not-for-profit.

Such a restructuring would be highly unusual, iuridictum.pecina.cz 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 companies like health centers, not venture capital-backed companies, she said. (Reporting by Anna Tong in Oakland and Akash Sriram in Bengaluru, Editing by Marguerita Choy)