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 uncommon, professional states

(Adds judge did not choose whether or not to issue the injunction in paragraph 5, OpenAi's legal representatives' 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 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, forum.altaycoins.com 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 considering Musk's current request for an initial injunction to block OpenAI's conversion before going to trial, wiki.asexuality.org the current move in a grudge match in between the world's wealthiest individual and OpenAI CEO Sam Altman that is playing out openly in court.

Rogers did not choose whether to provide the injunction Tuesday, e.bike.free.fr but at one point suggested that Musk's legal group had actually not provided sufficient proof for archmageriseswiki.com her to issue the injunction, and suggested she may hold an evidentiary hearing, where both sides might 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, however left before the business removed and subsequently established the completing AI startup xAI in 2023. OpenAI is now attempting to transition from a not-for-profit into a for-profit entity, which it states it requires to do to secure the capital needed to establish the best artificial intelligence designs. In 2015, Musk submitted a claim against OpenAI and Altman, saying that OpenAI ´ s creators initially approached him to money a not-for-profit concentrated on establishing AI to benefit mankind, photorum.eclat-mauve.fr but that it is now concentrated on earning money. He later broadened the claim to include federal antitrust and other claims, and in December asked the judge administering over the case to stop OpenAI from transitioning to a for-profit.

In action to Musk ´ s claim, OpenAI has said it will move to dismiss Musk ´ s claims which Musk "need to be contending in the market rather than the courtroom." The stakes on OpenAI's corporate transition have actually now intensified, as OpenAI ´ s last fundraising round of $6.6 billion and a brand-new round of as much as $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 attorneys said the reason to permit OpenAI to become a for-profit entity is due to the fact that it would be required to assist in the mission of the nonprofit.

Such a restructuring would be highly unusual, said Rose Chan Loui, executive director of the UCLA Law Center for Philanthropy and . Nonprofit conversions to for-profits have historically been for healthcare organizations like health centers, not endeavor capital-backed business, she said. (Reporting by Anna Tong in Oakland and Akash Sriram in Bengaluru, Editing by Marguerita Choy)