Elon Musk loses immediate battle to halt OpenAI’s for-profit transformation but gets OK for fast trial

Elon Musk loses immediate battle to halt OpenAI’s for-profit transformation but gets OK for fast trial

Elon Musk lost an offer to the court asking the judge to prevent a temporary Chatgpt Creator and his supporter (MSFT) from implementing plans to convert the artificial intelligence institution into a profitable commercial company.

But the billionaire at the same time scored a big victory.

In a matter that refuses to request the immediate Musk, the judge of the California Federal Provincial Court offered IPhone Gonzalez Rogers hearing the essence of Musk A claim against Obobay On an urgent schedule that will determine the trial for this fall.

And she wrote in an order issued on Tuesday, “Given the public interest at stake and the possibility of harm … The court is ready to accelerate the trial until the fall of 2025,” she wrote in a matter issued on Tuesday.

Musk requested a judicial order to stop Openai, co-founder Sam Altman, and its largest investor, Microsoft, from completing Openai's plans to transfer from a non-profit institution to a profit organization-and from transferring any material assets owned by Openai or its subsidiaries, including intellectual property.

Elon Musk and Sam Altman speaks on stage together at the San Francisco event in 2015. (Michael Kovac/Getty Images for Vanity) · Michael Kovac via Getty Images

Musk and Altman originally participated in the founding of Openai in 2015 as a non -profit institution, but Musk separated itself from the Artificial Intelligence Company on differences on how to move forward in the project and eventually began the competing Amnesty International called XAI.

Musk lawsuit that seeks to prevent the conversion of Openai to the centers of profitable institutions about the 45 million dollar MUSK donation to finance the startup, which it claims was concerned with Openai is a non -profit organization.

Altman claims that Musk wanted to integrate Openai in the profitable electric car company, Tesla (TSLA), so that Tesla can provide additional financing.

Altman and Microsoft described Musk's allegations as “FALSE” and claimed that he has no legal basis for an Openai's conversion prohibition.

MUSK lawyer, Mark Tobrov, said during a hearing in February that allowing Openai to continue to follow up on the profitable situation would cause “irreplaceable damage” to Moussa, XAI, investors, and the public.

“I don't think you have given me a record of relief to you,” Gonzalez Rogers said at the February session, noting that the musk that asked it was rarely granted.

But she agreed that Musk's complaint raised questions that could be disagreeing about the conditions of his relationship with Openai. His lawyers claimed that his donations were conditional on Openai's work as a non -profit organization.

“I don't know what happened, but I certainly do not put anything on a rejection proposal when it is reasonable that what Mr. Musk says is correct,” said Gonzalez Rogers. “We will discover. He will sit on the platform. He will present it to the jury. The jury will decide who is correct.”

Microsoft Satya Nadella, CEO of Microsoft Satya Nadella, speaks to the right, from Openai Sam Altman CEO during San Francisco. (Justin Sullivan/Getty Emp) · Justin Sullivan via Getty Images

“It is completely reasonable to have an oral contract,” the judge said.

He also asked to request a Musk order from the judge to prevent the defendants from employing interlocking managers who can share sensitive information competitively and from any agreements with Openai investors to invest in Openai's competitors, including Musk Xai.

Musk and a group of investors since then offered the purchase of Openai for $ 97 billion. Gonzalez Rogers said in its decision on Tuesday that the offer reduces the claim of Musk that converting Openai into a business for profit would lead to an irreplaceable damage in musk.

Musk also named the founder of LinkedIn Red Hoffman and CEO of Microsoft Dee Templeton as defendants, claiming that they illegally served as managers of both Openai and Microsoft at a time when the two companies were competing in the artificial intelligence market.

Hoffman has since resigned from the Board of Directors of non -profit organizations. Templeton is an unlimited observer.

According to Musk, Altman has violated the laws against unfair competition by connecting the decree of the “La Competitors” to current and potential investors in Openai and the regulation of Hoffman and Templeton interlocking council. These are the allegations that the Openai and Altman Sarah Eddy lawyer denied.

“I have big concerns with Microsoft's modes or two people on the blackboard,” said Gonzalez Rogers. “Whether they vote or not-they are still taking information.”

Gonzalez Rogers was skeptical of Musa's claim that investors had been affected, even if there was a decree, in addition to the claim that such a restriction was never present.

Musk's lawyers told the judge that the alleged restrictions aim to prevent Xai and other competing companies from reaching a small group of capital for artificial intelligence, and therefore, the stake of the dominant Microsoft market on Microsoft.

As of October 2024, Microsoft has poured $ 13.75 billion in Openai. Musk's lawyer said that Xai raised $ 11 billion after the alleged Altman authorization, which prompted a note from doubt by the judge.

The judge said that the full case is not expected to be ready for trial until 2027 or 2028.

Alexis Kennan is a legal correspondent for the financing of Yahoo. Follow Alexis on x Alexisweed.

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