OAKLAND, Calif. (AP) - Elon Musk's legal representatives took on with OpenAI in court Tuesday as a federal judge weighed the billionaire's ask for a court order that would obstruct the ChatGPT maker from transforming itself to a for-profit company.
U.S. District Judge Yvonne Gonzalez Rogers said it was a "stretch" for Musk to claim he will be irreparably hurt if she doesn't step in to stop OpenAI from moving forward with its shift from a not-for-profit research study lab to a for-profit corporation.
But the judge also raised issues about OpenAI and its relationship with company partner Microsoft and said she would not stop the case from relocating to trial as soon as next year so a jury can decide.
"It is possible that what Mr. Musk is stating holds true. We ´ ll discover. He ´ ll sit on the stand," she said.
Musk, an early OpenAI financier and board member, took legal action against the synthetic intelligence business in 2015, first in a California state court and wifidb.science later in federal court, declaring it had betrayed its starting aims as a not-for-profit research laboratory benefiting the public good. Musk had actually invested about $45 million in the start-up from its starting up until 2018, his lawyer said Tuesday.
Musk escalated the legal conflict late in 2015, adding brand-new claims and accuseds and wiki.monnaie-libre.fr asking for a court order that would stop OpenAI ´ s plans to convert itself into a for-profit service more totally. Musk also added his own AI business, xAI, as a plaintiff.
Also targeted by Musk's claim is OpenAI's close business partner Microsoft and tech business owner Reid Hoffman, a former OpenAI board member who also rests on Microsoft's board.
Gonzalez Rogers said she has a high bar for approving the type of that Musk desires however hasn't yet ruled on the request. She did state she had "significant concerns" with two individuals linked to Microsoft on OpenAI's board - Hoffman and longtime Microsoft executive Deanna Templeton, who was a "non-voting observer."
"So you want me to think that she was sitting there listening to all the discussions and not telling anybody? What would the point be for her to sit there and listen to everyone, if not to communicate what she was listening? There would be no point for her to be there, which is why she in fact needs to not be there," she said.
Hoffman, a co-founder of LinkedIn, has actually been on Microsoft ´ s board considering that shortly after the tech huge bought the task networking website. He stepped down from OpenAI's board in 2023 to avoid conflicts with his AI startup, Inflection.
Templeton, who Musk likewise named as a defendant, was included as a non-voting member of OpenAI ´ s board in the aftermath of Altman ´ s ouster after Microsoft CEO Satya Nadella sought more stability on the board. But months later on, she was dropped from the OpenAI board as U.S. antitrust enforcers were revealing concerns about such plans on business boards.
The judge has actually managed a number of tech industry cases including Apple's fight with Epic Games, though she said Tuesday that Musk's case is "nothing like" that one. That case was also the last time she approved an initial injunction, in 2020, 8 months before the case went to trial.
Then-President Barack Obama selected Gonzalez Rogers to the federal bench in 2011.
Tuesday's hearing was originally set for January however was held off after Musk's lawyer Marc Toberoff said his home was damaged in the Pacific Palisades wildfire.
Musk, who did not participate in the hearing, has declared in the claim that the business are violating the terms of his fundamental contributions to the charity. Judge Gonzalez Rogers called it a "stretch" to claim "irreparable harm" to Musk, and asteroidsathome.net called the case "billionaires vs. billionaires." She questioned why Musk invested tens of millions in OpenAI without a composed agreement. Toberoff said it was due to the fact that the relationship between Altman and Musk at the time was "developed on trust" and the two were extremely close.
"That is just a lot of cash" to invest "on a handshake," the judge said.
OpenAI has actually said Musk ´ s asked for court order would "cripple OpenAI ´ s company"and objective to the advantage of Musk and his own AI business and is based on "far-fetched" legal claims.
At the heart of the disagreement is a 2017 internal power struggle at the new start-up that caused Altman ending up being OpenAI ´ s CEO
. Emails disclosed by OpenAI reveal Musk had also looked for to be CEO and grew frustrated after two other OpenAI co-founders said he would hold too much power as a major investor and president if the startup was successful in its objective to attain better-than-human AI called synthetic general intelligence, or AGI. Musk has long voiced concerns about how advanced types of AI could threaten humankind.
Altman eventually prospered in ending up being CEO and has remained so other than for a period in 2023 when he was fired and after that restored days later on after the board that ousted him was replaced.
OpenAI has actually looked for to show Musk ´ s early assistance for the concept of making OpenAI a for-profit business so it could raise cash for the hardware and computer system power that AI requires.
Musk is not the only one difficult OpenAI's for-profit transition. Facebook and Instagram parent Meta Platforms has asked California's chief law officer to obstruct it, and the workplace of Delaware's chief law officer has said it is examining the conversion.
It was unclear Tuesday when the case may go to trial. Musk's lawyers initially said they would be ready by June after some back-and-forth with the two sides the judge indicated it probably will not be until June 2026 at the earliest, but likely early 2027.
O'Brien reported from Providence, Rhode Island.
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Judge Says Elon Musk's Claims of Harm from OpenAI Are A 'stretch'.
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