Musk takes legal action against to obstruct 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, expert says
(Adds judge did not decide whether or it-viking.ch not to issue the injunction in paragraph 5, OpenAi's attorneys' remark 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, forum.pinoo.com.tr adding 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, online-learning-initiative.org 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 request for a preliminary injunction to obstruct OpenAI's conversion before going to trial, the most current relocation in an animosity match between the world's wealthiest individual and OpenAI CEO Sam Altman that is playing out openly in court.
Rogers did not choose whether or not to release the injunction Tuesday, but at one point recommended that Musk's legal team had not provided sufficient evidence for her to release the injunction, and showed she may hold an evidentiary hearing, where both sides could provide witnesses and proof. The last time Rogers offered a preliminary 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 completing AI start-up xAI in 2023. OpenAI is now trying to transition from a not-for-profit into a for-profit entity, which it says it requires to do to protect the capital required to establish the best expert system designs. In 2015, 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 humankind, but that it is now concentrated on generating income. He later on expanded 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 response to Musk ´ s claim, OpenAI has said it will relocate to dismiss Musk ´ s claims which Musk "should be completing in the market instead of the courtroom." The stakes on OpenAI's business transition have now intensified, as OpenAI ´ s last fundraising round of $6.6 billion and a new round of approximately $25 billion under conversation with SoftBank are conditioned on the company restructuring to get rid of the nonprofit ´ s manage.
During the hearing, OpenAI's attorneys said the reason to allow OpenAI to end up being a for-profit entity is due to the fact that it would be essential to assist in 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 hospitals, not endeavor capital-backed companies, 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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