OAKLAND, Calif. (AP) - Elon Musk's attorneys took on with OpenAI in court Tuesday as a federal judge weighed the billionaire's ask for a court order that would obstruct the ChatGPT maker from transforming itself to a for-profit business.

U.S. District Judge Yvonne said it was a "stretch" for tandme.co.uk Musk to claim he will be irreparably harmed if she doesn't step in to stop OpenAI from progressing with its shift from a nonprofit research study lab to a for-profit corporation.

But the judge also raised issues about OpenAI and its relationship with company partner Microsoft and said she would not stop the case from relocating to trial as soon as next year so a jury can decide.

"It is plausible that what Mr. Musk is stating holds true. We ´ ll learn. He ´ ll sit on the stand," she said.

Musk, an early OpenAI investor and board member, took legal action against the synthetic intelligence company last year, initially in a California state court and later on in federal court, alleging it had betrayed its founding aims as a nonprofit research lab benefiting the general public excellent. Musk had actually invested about $45 million in the startup from its founding till 2018, his lawyer said Tuesday.

Musk escalated the legal conflict late last year, adding new claims and defendants and requesting for a court order that would stop OpenAI ´ s prepares to transform itself into a for-profit organization more totally. Musk also added his own AI company, xAI, as a plaintiff.

Also targeted by Musk's claim is OpenAI's close organization partner Microsoft and tech business owner Reid Hoffman, a previous OpenAI board member who likewise rests on Microsoft's board.

Gonzalez Rogers said she has a high bar for authorizing the kind of initial injunction that Musk wants but hasn't yet ruled on the request. She did say she had "considerable concerns" with two individuals linked to Microsoft on OpenAI's board - Hoffman and long time Microsoft executive Deanna Templeton, who was a "non-voting observer."

"So you want me to think that she was sitting there listening to all the conversations and not telling anybody? What would the point be for her to sit there and listen to everybody, if not to interact what she was listening? There would be no point for her to be there, which is why she in fact should not be there," she said.

Hoffman, a co-founder of LinkedIn, has actually been on Microsoft ´ s board considering that shortly after the tech huge purchased the task networking website. He stepped down from OpenAI's board in 2023 to prevent conflicts with his AI startup, Inflection.

Templeton, engel-und-waisen.de who Musk likewise named as an accused, was added as a non-voting member of OpenAI ´ s board in the after-effects of Altman ´ s ouster after Microsoft CEO Satya Nadella looked for more stability on the board. But months later, she was dropped from the OpenAI board as U.S. antitrust enforcers were expressing issues about such plans on corporate boards.

The judge has actually dealt with a number of tech market cases consisting of Apple's battle with Epic Games, though she said Tuesday that Musk's case is "absolutely nothing like" that a person. That case was likewise the last time she granted an initial injunction, in 2020, 8 months before the case went to trial.

Then-President Barack Obama designated Gonzalez Rogers to the federal bench in 2011.

Tuesday's hearing was initially set for January but was held off after Musk's lawyer Marc Toberoff said his house was destroyed in the Pacific Palisades wildfire.

Musk, who did not participate in the hearing, has actually alleged in the claim that the companies are breaking the regards to his foundational contributions to the charity. Judge Gonzalez Rogers called it a "stretch" to claim "irreparable damage" to Musk, and called the case "billionaires vs. billionaires." She questioned why Musk invested tens of millions in OpenAI without a written contract. Toberoff said it was due to the fact that the relationship in between Altman and Musk at the time was "developed on trust" and the 2 were very close.

"That is simply a great deal of money" to invest "on a handshake," the judge said.

OpenAI has actually said Musk ´ s asked for court order would "cripple OpenAI ´ s organization"and objective to the benefit of Musk and his own AI business and is based on "far-fetched" legal claims.

At the heart of the dispute is a 2017 internal power struggle at the new start-up that resulted in Altman becoming OpenAI ´ s CEO

. Emails disclosed by OpenAI reveal Musk had likewise looked for to be CEO and grew disappointed after two other OpenAI co-founders said he would hold excessive power as a significant investor and primary executive if the start-up succeeded in its objective to attain better-than-human AI called artificial general intelligence, or AGI. Musk has long voiced issues about how innovative kinds of AI might threaten humanity.

Altman eventually prospered in becoming CEO and has remained so except for a duration in 2023 when he was fired and then reinstated days later on after the board that ousted him was changed.

OpenAI has sought to show Musk ´ s early support for the idea of making OpenAI a for-profit service so it could raise money for the hardware and computer system power that AI requires.

Musk is not the only one difficult OpenAI's for-profit shift. Facebook and Instagram parent Meta Platforms has actually asked California's chief law officer to obstruct it, and the workplace of Delaware's chief law officer has said it is reviewing the conversion.

It was unclear Tuesday when the case may go to trial. Musk's attorneys initially said they would be ready by June after some back-and-forth with the two sides the judge suggested it probably will not be till June 2026 at the earliest, but likely early 2027.

O'Brien reported from Providence, Rhode Island.

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