Musk's Claim against OpenAI May go to Trial In Part, Judge Says

Musk cofounded OpenAI with Altman in 2015

(Adds judge did not choose whether to release the injunction in paragraph 5, OpenAi's attorneys' comment in paragraph 13)

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 might go to trial, adding 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, elearnportal.science California, said early in the court session.

"(Elon Musk will) sit on the stand, present it to a jury, and a jury will choose who is right." Rogers was considering Musk's current request for a preliminary injunction to block OpenAI's conversion before going to trial, the current move in a grudge match between the world's wealthiest individual and OpenAI CEO Sam Altman that is playing out openly in court.

Rogers did not decide whether or not to release the injunction Tuesday, however at one point recommended that Musk's legal group had not provided sufficient proof for her to release the injunction, and indicated she may hold an evidentiary hearing, funsilo.date where both sides might provide witnesses and proof. The last time Rogers offered a preliminary injunction remained in Epic Games' case against Apple in May 2021.

Musk cofounded OpenAI with Altman in 2015, but left before the business took off and subsequently founded the completing AI start-up xAI in 2023. OpenAI is now trying to shift from a not-for-profit into a for-profit entity, which it says it requires to do to secure the capital needed to develop the very best expert system models. Last year, Musk filed a claim against OpenAI and Altman, saying that OpenAI ´ s creators initially approached him to money a nonprofit focused on establishing AI to benefit humanity, however that it is now focused on making cash. He later expanded the claim to include federal antitrust and other claims, and in December asked the judge commanding the case to stop OpenAI from transitioning to a for-profit.

In reaction to Musk ´ s claim, OpenAI has said it will transfer to dismiss Musk ´ s claims which Musk "must be contending in the market 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 new round of up to $25 billion under conversation with SoftBank are conditioned on the company reorganizing to get rid of the not-for-profit ´ s control.

During the hearing, OpenAI's lawyers said the factor to enable OpenAI to end up being a for-profit entity is since it would be needed to help with the objective of the not-for-profit.