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 move needed for capital
Nonprofit to for-profit conversion rare, specialist says
(Adds judge did not choose whether to release the injunction in paragraph 5, OpenAi's lawyers' 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 halt its conversion to a for-profit entity might go to trial, adding 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) sit on the stand, present it to a jury, and a jury will choose who is right." Rogers was about Musk's recent request for an initial injunction to block OpenAI's conversion before going to trial, the current move in a grudge match in between the world's richest individual and OpenAI CEO Sam Altman that is playing out publicly in court.
Rogers did not choose whether to release the injunction Tuesday, archmageriseswiki.com however at one point suggested that Musk's legal group had actually not provided adequate evidence for her to provide the injunction, and indicated she may hold an evidentiary hearing, where both sides could present witnesses and proof. 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 business took off and subsequently established the competing AI startup xAI in 2023. OpenAI is now attempting to shift from a not-for-profit into a for-profit entity, which it states it needs to do to protect the capital needed to develop the very best expert system models. In 2015, Musk filed a claim against OpenAI and Altman, saying that OpenAI ´ s creators originally approached him to fund a not-for-profit focused on establishing AI to benefit humanity, however that it is now focused on making cash. He later on expanded the claim to add federal antitrust and other claims, iwatex.com and in December asked the judge administering 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 which Musk "should be competing in the market rather than the courtroom." The stakes on OpenAI's corporate transition have now escalated, as OpenAI ´ s last fundraising round of $6.6 billion and a new round of as much as $25 billion under conversation with SoftBank are conditioned on the business restructuring to get rid of the nonprofit ´ s manage.
During the hearing, OpenAI's lawyers said the factor forum.altaycoins.com to permit OpenAI to become a for-profit entity is because it would be required to help with the objective of the nonprofit.
Such a restructuring would be extremely uncommon, said Rose Chan Loui, executive director of the UCLA Law Center for Philanthropy and Nonprofits. Nonprofit conversions to for-profits have actually traditionally been for health care organizations 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)