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Judge Says Elon Musk's Claims of Harm from OpenAI Are A 'stretch'.
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OAKLAND, forum.pinoo.com.tr Calif. (AP) - Elon Musk's attorneys faced off with OpenAI in court Tuesday as a federal judge weighed the billionaire's request for a court order that would obstruct the ChatGPT maker from transforming itself to a for-profit company.

U.S. District Judge Yvonne Gonzalez Rogers said it was a "stretch" for Musk to claim he will be irreparably harmed if she does not step in to stop OpenAI from progressing with its transition from a nonprofit research lab to a for-profit corporation.

But the judge also raised concerns about OpenAI and its relationship with company partner Microsoft and said she would not stop the case from transferring to trial as quickly as next year so a jury can choose.

"It is possible that what Mr. Musk is saying holds true. We ´ ll discover. He ´ ll sit on the stand," she said.

Musk, an early OpenAI financier and board member, took legal action against the expert system company last year, first in a California state court and later in federal court, alleging it had betrayed its founding aims as a nonprofit research lab benefiting the public great. Musk had invested about $45 million in the start-up from its founding up until 2018, his lawyer said Tuesday.

Musk escalated the legal disagreement late in 2015, adding new claims and offenders and asking for a court order that would stop OpenAI ´ s prepares to convert itself into a for-profit company more fully. Musk also included his own AI company, xAI, as a plaintiff.

Also targeted by Musk's claim is OpenAI's close business partner Microsoft and tech business owner Reid Hoffman, surgiteams.com a former OpenAI board member who also rests on Microsoft's board.

Gonzalez Rogers said she has a high bar for approving the kind of preliminary injunction that Musk wants however hasn't yet ruled on the demand. She did state she had "significant issues" with 2 individuals connected to Microsoft on OpenAI's board - Hoffman and longtime Microsoft executive Deanna Templeton, asteroidsathome.net who was a "non-voting observer."

"So you desire me to believe that she was sitting there listening to all the conversations and not telling any person? What would the point be for her to sit there and listen to everybody, if not to communicate what she was listening? There would be no point for her to be there, which is why she really ought to not exist," she said.

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

Templeton, who Musk also called as an offender, was added as a non-voting member of OpenAI ´ s board in the of Altman ´ s ouster after Microsoft CEO Satya Nadella looked for more stability on the board. But months later on, she was dropped from the OpenAI board as U.S. antitrust enforcers were expressing concerns about such plans on business boards.

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

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

Tuesday's hearing was initially set for January but was delayed after Musk's lawyer Marc Toberoff said his home was damaged in the Pacific Palisades wildfire.

Musk, who did not participate in the hearing, has alleged in the claim that the business are breaking the terms of his fundamental contributions to the charity. Judge Gonzalez Rogers called it a "stretch" to claim "irreversible damage" to Musk, and kenpoguy.com called the case "billionaires vs. billionaires." She questioned why Musk invested tens of millions in OpenAI without a composed contract. Toberoff said it was due to the fact that the relationship between Altman and Musk at the time was "constructed on trust" and the two were very close.

"That is just a lot of cash" to invest "on a handshake," the judge said.

OpenAI has said Musk ´ s requested court order would "cripple OpenAI ´ s company"and asteroidsathome.net objective to the benefit of Musk and his own AI company and is based upon "far-fetched" legal claims.

At the heart of the conflict is a 2017 internal power struggle at the new start-up that led to Altman ending up being OpenAI ´ s CEO

. Emails revealed by OpenAI reveal Musk had also sought to be CEO and grew annoyed after two other OpenAI co-founders said he would hold too much power as a significant shareholder and president if the startup was successful in its objective to attain better-than-human AI called synthetic basic intelligence, or AGI. Musk has actually long voiced issues about how advanced forms of AI might threaten humanity.

Altman ultimately succeeded in ending up being CEO and has actually remained so except for a duration in 2023 when he was fired and then renewed days later after the board that ousted him was changed.

OpenAI has actually looked for to show Musk ´ s early assistance for the concept of making OpenAI a for-profit organization so it might raise money for fakenews.win the hardware and thatswhathappened.wiki computer power that AI needs.

Musk is not the only one tough OpenAI's for-profit transition. Facebook and Instagram moms and dad Meta Platforms has actually asked California's attorney general of the United States to obstruct it, and the workplace of Delaware's lawyer general has said it is examining the conversion.

It was not clear Tuesday when the case might go to trial. Musk's lawyers initially said they would be all set by June after some back-and-forth with the 2 sides the judge showed it most likely will not be until June 2026 at the earliest, but likely early 2027.

O'Brien reported from Providence, Rhode Island.

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