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  • Rolando Gowrie
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Created Feb 10, 2025 by Rolando Gowrie@rolandogowrie3Maintainer

Judge Says Elon Musk's Claims of Harm from OpenAI Are A 'stretch'.


OAKLAND, Calif. (AP) - Elon Musk's legal representatives 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 Gonzalez Rogers said it was a "stretch" for dokuwiki.stream Musk to claim he will be irreparably hurt if she doesn't intervene to stop OpenAI from moving forward with its transition from a not-for-profit research study lab to a for-profit corporation.

But the judge likewise raised concerns about OpenAI and its relationship with service 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 learn. He ´ ll sit on the stand," she said.

Musk, an early OpenAI financier and board member, took legal action against the synthetic intelligence business last year, initially in a California state court and later on in federal court, declaring it had actually betrayed its founding aims as a research laboratory benefiting the public excellent. Musk had actually invested about $45 million in the start-up from its starting till 2018, his lawyer said Tuesday.

Musk intensified the legal disagreement late in 2015, adding brand-new claims and offenders and asking for oke.zone a court order that would stop OpenAI ´ s plans to transform itself into a for-profit service more totally. Musk also included his own AI company, xAI, as a plaintiff.

Also targeted by Musk's claim is OpenAI's close company partner Microsoft and tech entrepreneur Reid Hoffman, a previous OpenAI board member who also sits on Microsoft's board.

Gonzalez Rogers said she has a high bar for funsilo.date approving the type of preliminary injunction that Musk desires however hasn't yet ruled on the request. She did say she had "considerable concerns" with two people linked to Microsoft on OpenAI's board - Hoffman and longtime 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 discussions and not informing anyone? 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 actually should not exist," she said.

Hoffman, a co-founder of LinkedIn, has been on Microsoft ´ s board considering that soon after the tech giant purchased the job networking website. He stepped down from OpenAI's board in 2023 to avoid conflicts with his AI start-up, Inflection.

Templeton, ai-db.science who Musk likewise called as an accused, was included as a non-voting member of OpenAI ´ s board in the consequences 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 revealing issues about such plans on corporate boards.

The judge has managed a number of tech market cases including 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 appointed Gonzalez Rogers to the federal bench in 2011.

Tuesday's hearing was initially set for January but was postponed 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 declared 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 harm" to Musk, and called the case "billionaires vs. billionaires." She questioned why Musk invested 10s of millions in OpenAI without a written contract. Toberoff said it was since the relationship in between Altman and Musk at the time was "developed on trust" and the two were very close.

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

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

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

. Emails divulged by OpenAI show Musk had also looked for to be CEO and grew frustrated after 2 other OpenAI co-founders said he would hold excessive power as a major investor and primary executive if the start-up prospered in its objective to attain better-than-human AI referred to as synthetic general intelligence, or wiki.dulovic.tech AGI. Musk has long voiced issues about how innovative kinds of AI might threaten mankind.

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

OpenAI has actually sought to demonstrate Musk ´ s early assistance for lespoetesbizarres.free.fr the concept of making OpenAI a for-profit business so it could raise money for the hardware and computer system power that AI requires.

Musk is not the only one challenging OpenAI's for-profit shift. Facebook and Instagram moms and dad Meta Platforms has actually asked California's attorney general to block it, and the workplace of Delaware's chief law officer has said it is evaluating the conversion.

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

O'Brien reported from Providence, Rhode Island.

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