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 required for wiki.rolandradio.net capital

Nonprofit to for-profit conversion rare, expert states

(Adds judge did not choose whether to release 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 halt its conversion to a for-profit entity may go to trial, 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, 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 considering Musk's recent ask for prazskypantheon.cz a preliminary injunction to obstruct OpenAI's conversion before going to trial, the most current move in an animosity match in between the world's richest individual and OpenAI CEO Sam Altman that is playing out publicly in court.

Rogers did not choose whether or not to release the injunction Tuesday, but at one point suggested that Musk's legal group had not presented adequate proof for shiapedia.1god.org her to release the injunction, bytes-the-dust.com and showed she might hold an evidentiary hearing, where both sides could present witnesses and hb9lc.org 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, but left before the company removed and subsequently established the competing AI start-up xAI in 2023. OpenAI is now attempting to shift 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 very best artificial intelligence designs. In 2015, Musk filed a claim against OpenAI and Altman, saying that OpenAI ´ s founders originally approached him to fund a not-for-profit concentrated on establishing AI to benefit humankind, however that it is now concentrated on earning money. He later expanded 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 response to Musk ´ s claim, demo.qkseo.in OpenAI has said it will relocate to dismiss Musk ´ s claims which Musk "need to be contending in the market rather than the courtroom." The stakes on OpenAI's business 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 business restructuring to eliminate the not-for-profit ´ s control.

During the hearing, OpenAI's attorneys said the factor setiathome.berkeley.edu to permit OpenAI to become a for-profit entity is due to the fact that it would be required to facilitate the objective of the not-for-profit.

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 historically been for health care companies like hospitals, not venture capital-backed business, she said. (Reporting by Anna Tong in Oakland and Akash Sriram in Bengaluru, Editing by Marguerita Choy)