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 needed for capital

Nonprofit to for-profit conversion uncommon, expert says

(Adds judge did not decide whether to provide the injunction in paragraph 5, OpenAi's attorneys' comment 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 surgiteams.com affirm.

"Something is going to trial in this case," U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California, wiki-tb-service.com 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, forum.batman.gainedge.org the most recent move in a grudge match between the world's richest individual and OpenAI CEO Sam Altman that is playing out openly in court.

Rogers did not decide whether to issue the injunction Tuesday, but at one point recommended that Musk's legal team had not presented adequate proof for her to release the injunction, and showed she may hold an evidentiary hearing, bphomesteading.com where both sides might provide witnesses and evidence. The last time Rogers supplied 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 scientific-programs.science consequently founded the competing AI startup xAI in 2023. OpenAI is now trying to transition from a nonprofit into a for-profit entity, which it states it requires to do to protect the capital required to develop the very best synthetic intelligence designs. Last year, Musk filed a claim against OpenAI and Altman, saying that OpenAI ´ s creators initially approached him to money a not-for-profit focused on establishing AI to benefit humankind, however that it is now concentrated on earning money. He later on expanded the claim to add federal antitrust and other claims, archmageriseswiki.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, OpenAI has said it will relocate to dismiss Musk ´ s claims which Musk "should be completing in the marketplace instead of the courtroom." The stakes on OpenAI's business shift have actually now intensified, as OpenAI ´ s last fundraising round of $6.6 billion and wiki.whenparked.com a new round of as much as $25 billion under conversation with SoftBank are conditioned on the business restructuring to remove the nonprofit ´ s manage.

During the hearing, OpenAI's lawyers said the factor to enable OpenAI to become a for-profit entity is due to the fact that it would be to facilitate the objective of the nonprofit.

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 actually traditionally been for health care organizations like medical facilities, not endeavor capital-backed business, she said. (Reporting by Anna Tong in Oakland and Akash Sriram in Bengaluru, Editing by Marguerita Choy)