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 rare, specialist says
(Adds judge did not choose whether to issue the injunction in paragraph 5, OpenAi's attorneys' comment 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, including 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) rest on the stand, present it to a jury, and a jury will choose who is right." Rogers was thinking about Musk's recent ask for a preliminary injunction to obstruct OpenAI's conversion before going to trial, the current relocation in an animosity match in between the world's wealthiest person and OpenAI CEO Sam Altman that is playing out publicly in court.
Rogers did not decide whether or not to release the injunction Tuesday, wiki.myamens.com but at one point suggested that Musk's legal group had actually not presented enough evidence for her to provide the injunction, and indicated she might hold an evidentiary hearing, forum.pinoo.com.tr where both sides could present witnesses and evidence. The last time Rogers offered 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 removed and consequently established the contending AI start-up xAI in 2023. OpenAI is now trying to transition from a nonprofit into a for-profit entity, archmageriseswiki.com which it says it needs to do to protect the capital needed to establish the finest artificial . In 2015, Musk submitted a claim against OpenAI and Altman, saying that OpenAI ´ s creators originally approached him to fund a not-for-profit concentrated on establishing AI to benefit mankind, however that it is now focused on making money. He later on broadened the claim to include federal antitrust and other claims, and in December asked the judge administering over the case to stop OpenAI from transitioning to a for-profit.
In action to Musk ´ s claim, OpenAI has said it will relocate to dismiss Musk ´ s claims and that Musk "must be completing in the marketplace instead of the courtroom." The stakes on OpenAI's business shift have now intensified, as OpenAI ´ s last fundraising round of $6.6 billion and a brand-new round of approximately $25 billion under discussion with SoftBank are conditioned on the company restructuring to get rid of the not-for-profit ´ s manage.
During the hearing, OpenAI's lawyers said the reason to enable OpenAI to end up being a for-profit entity is because it would be needed to facilitate the mission of the not-for-profit.
Such a restructuring would be extremely 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 companies like medical facilities, not venture capital-backed business, 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
Aaron Barbosa edited this page 2025-02-10 02:44:44 +02:00