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 capital

Nonprofit to for-profit conversion rare, coastalplainplants.org expert states

(Adds judge did not decide whether to release the injunction in paragraph 5, OpenAi's lawyers' 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 may go to trial, including that the Tesla CEO will need to appear in court and affirm.

"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 thinking about Musk's current ask for a preliminary injunction to block OpenAI's conversion before going to trial, the current relocation in a grudge match between the world's richest person and akropolistravel.com OpenAI CEO Sam Altman that is playing out openly in court.

Rogers did not choose whether or not to provide the injunction Tuesday, but at one point suggested that Musk's legal team had actually not presented enough evidence for her to issue the injunction, and showed she might hold an evidentiary hearing, where both sides might provide witnesses and evidence. The last time Rogers supplied a preliminary injunction remained in Epic Games' case against Apple in May 2021.

Musk cofounded OpenAI with Altman in 2015, forum.pinoo.com.tr however left before the business took off and wiki.vst.hs-furtwangen.de consequently founded the contending AI startup xAI in 2023. OpenAI is now attempting to shift from a nonprofit into a for-profit entity, which it states it needs to do to protect the capital required to establish the very best expert system designs. Last year, Musk submitted a claim against OpenAI and thatswhathappened.wiki Altman, stating that OpenAI ´ s creators originally approached him to fund a nonprofit concentrated on developing AI to benefit humanity, but that it is now focused on making money. He later expanded the claim to add federal antitrust and other claims, and in December asked the judge presiding over the case to stop OpenAI from transitioning to a for-profit.

In reaction to Musk ´ s claim, addsub.wiki OpenAI has said it will transfer to dismiss Musk ´ s claims which Musk "need to be completing in the market instead of the courtroom." The stakes on OpenAI's business transition have actually now intensified, 135.181.29.174 as OpenAI ´ s last fundraising round of $6.6 billion and a new round of up to $25 billion under conversation with SoftBank are conditioned on the business restructuring to remove the nonprofit ´ s manage.

During the hearing, OpenAI's legal representatives said the factor to allow OpenAI to end up being a for-profit entity is since it would be needed to help with the 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 traditionally been for healthcare companies like medical facilities, not endeavor capital-backed companies, she said. (Reporting by Anna Tong in Oakland and Akash Sriram in Bengaluru, Editing by Marguerita Choy)