Musk's Claim against OpenAI May go to Trial In Part, Judge Says - ascor - Gitea: Git with a cup of tea

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 needed for engel-und-waisen.de capital

Nonprofit to for-profit conversion uncommon, specialist says

(Adds judge did not decide whether to issue the injunction in paragraph 5, OpenAi's lawyers' remark in paragraph 13)

By Anna Tong and scientific-programs.science Akash Sriram

OAKLAND, morphomics.science 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 need to appear in court and testify.

"Something is going to trial in this case," U.S. District Judge Yvonne Gonzalez Rogers in Oakland, genbecle.com California, said early in the court session.

"(Elon Musk will) sit 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 block OpenAI's conversion before going to trial, the most current move in a in between the world's wealthiest individual and OpenAI CEO Sam Altman that is playing out publicly in court.

Rogers did not choose whether to release the injunction Tuesday, lovewiki.faith however at one point suggested that Musk's legal team had actually not provided adequate evidence for her to release the injunction, and showed she might hold an evidentiary hearing, where both sides could provide 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, wiki.vifm.info but left before the company took off and consequently established the competing AI start-up xAI in 2023. OpenAI is now trying to shift from a nonprofit into a for-profit entity, which it states it needs to do to protect the capital needed to establish the finest expert system designs. In 2015, Musk filed a claim against OpenAI and valetinowiki.racing Altman, stating that OpenAI ´ s creators originally approached him to money a not-for-profit concentrated on developing AI to benefit mankind, but that it is now concentrated on making money. He later 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 response 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 corporate transition have now intensified, as OpenAI ´ s last fundraising round of $6.6 billion and a new round of up to $25 billion under discussion with SoftBank are conditioned on the company restructuring to remove the not-for-profit ´ s manage.

During the hearing, OpenAI's legal representatives said the reason to allow OpenAI to end up being a for-profit entity is because it would be required to assist in the mission of the nonprofit.

Such a restructuring would be highly uncommon, 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 organizations like health centers, not venture capital-backed business, she said. (Reporting by Anna Tong in Oakland and Akash Sriram in Bengaluru, Editing by Marguerita Choy)