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 move needed for akropolistravel.com capital
Nonprofit to for-profit conversion uncommon, specialist states
(Adds judge did not decide whether or not to provide the injunction in paragraph 5, OpenAi's legal representatives' 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 might go to trial, including that the Tesla CEO will have 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 thinking about Musk's current ask for a preliminary injunction to block OpenAI's conversion before going to trial, hb9lc.org the current relocation in a grudge match in between the world's richest person 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 group had not provided sufficient evidence for her to release the injunction, and showed she may hold an evidentiary hearing, bytes-the-dust.com where both sides might present witnesses and evidence. 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 subsequently founded the completing AI startup xAI in 2023. OpenAI is now attempting to shift from a nonprofit into a for-profit entity, yewiki.org which it states it needs to do to protect the needed to develop the best expert system designs. In 2015, Musk submitted a claim against OpenAI and Altman, stating that OpenAI ´ s creators originally approached him to fund a nonprofit focused on establishing AI to benefit humanity, lespoetesbizarres.free.fr but that it is now concentrated on earning money. He later on broadened the claim to add federal antitrust and other claims, and in December asked the judge commanding 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 which Musk "must be competing in the market rather than the courtroom." The stakes on OpenAI's business shift have now escalated, as OpenAI ´ s last fundraising round of $6.6 billion and a new round of as much as $25 billion under discussion with SoftBank are conditioned on the business restructuring to eliminate the nonprofit ´ s manage.
During the hearing, OpenAI's attorneys said the reason to enable OpenAI to become a for-profit entity is due to the fact that it would be essential to assist in 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 actually historically been for health care companies like hospitals, 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
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