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 rare, specialist says

(Adds judge did not choose whether to provide the injunction in paragraph 5, OpenAi's legal representatives' remark in paragraph 13)

By Anna Tong and Akash Sriram

OAKLAND, Calif., townshipmarket.co.za 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 may go to trial, including that the Tesla CEO will have 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) rest on the stand, present it to a jury, and a jury will choose who is right." Rogers was considering Musk's current demand for drapia.org a preliminary injunction to obstruct OpenAI's conversion before going to trial, the newest move in an animosity match in between the world's richest person and OpenAI CEO Sam Altman that is playing out publicly in court.

Rogers did not decide whether to provide the injunction Tuesday, but at one point recommended that Musk's legal team had actually not presented sufficient proof for her to issue the injunction, and suggested she may hold an evidentiary hearing, where both sides could present witnesses and proof. The last time Rogers provided 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 founded the completing 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 very best expert system designs. In 2015, Musk submitted a claim against OpenAI and kenpoguy.com Altman, stating that OpenAI ´ s creators originally approached him to money a nonprofit focused on establishing AI to benefit mankind, but that it is now focused on generating income. He later on expanded the claim to include federal antitrust and engel-und-waisen.de other claims, utahsyardsale.com and in December asked the judge commanding the case to stop OpenAI from transitioning to a for-profit.

In action to Musk ´ s claim, historydb.date OpenAI has said it will relocate to dismiss Musk ´ s claims and that Musk "must be competing in the marketplace instead of the courtroom." The stakes on OpenAI's corporate transition have now intensified, as OpenAI ´ s last fundraising round of $6.6 billion and a brand-new round of approximately $25 billion under discussion with SoftBank are conditioned on the company reorganizing to eliminate the nonprofit ´ s manage.

During the hearing, OpenAI's lawyers said the factor to allow OpenAI to become a for-profit entity is since it would be required to assist in the objective of the nonprofit.

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