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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 move needed for higgledy-piggledy.xyz capital

Nonprofit to for-profit conversion rare, specialist says

(Adds judge did not decide whether to provide the injunction in paragraph 5, OpenAi's attorneys' 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, including 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, 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 considering Musk's recent ask for kigalilife.co.rw an initial injunction to obstruct OpenAI's conversion before going to trial, the most recent move in a grudge match in between the world's richest individual and OpenAI CEO Sam Altman that is playing out publicly in court.

Rogers did not decide whether or not to issue the injunction Tuesday, however at one point recommended that Musk's legal team had actually not presented sufficient proof for her to provide the injunction, and showed she may hold an evidentiary hearing, 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, however left before the business removed and subsequently established the completing AI start-up xAI in 2023. OpenAI is now attempting to shift from a not-for-profit into a for-profit entity, disgaeawiki.info which it states it needs to do to secure the capital required to develop the finest expert system designs. Last year, Musk filed a claim against OpenAI and Altman, pipewiki.org saying that OpenAI ´ s creators initially approached him to fund a not-for-profit concentrated on developing AI to benefit humankind, however that it is now focused on generating income. He later on the claim to include federal antitrust and forum.altaycoins.com 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, OpenAI has said it will transfer to dismiss Musk ´ s claims and wiki.die-karte-bitte.de that Musk "should be completing in the market instead of the courtroom." The stakes on OpenAI's corporate shift have actually now intensified, as OpenAI ´ s last fundraising round of $6.6 billion and a new round of as much as $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 legal representatives said the factor to permit OpenAI to become a for-profit entity is due to the fact that it would be necessary to facilitate the objective of the not-for-profit.

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 historically been for health care organizations 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)