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OAKLAND, Calif. (AP) - Elon Musk's attorneys 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 converting itself to a for-profit business.


U.S. District Judge Yvonne Gonzalez Rogers said it was a "stretch" for Musk to claim he will be irreparably damaged 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 issues about OpenAI and its relationship with service partner Microsoft and said she would not stop the case from moving to trial as quickly as next year so a jury can decide.


"It is plausible that what Mr. Musk is stating is true. We ´ ll learn. He ´ ll rest on the stand," she said.


Musk, an early OpenAI financier and board member, took legal action against the synthetic intelligence company last year, first in a California state court and later in federal court, alleging it had actually betrayed its founding aims as a not-for-profit research study laboratory benefiting the public excellent. Musk had actually invested about $45 million in the start-up from its founding till 2018, his lawyer said Tuesday.


Musk intensified the legal disagreement late last year, adding new claims and defendants and requesting for a court order that would stop OpenAI ´ s prepares to transform itself into a for-profit business more totally. Musk also added his own AI company, xAI, as a plaintiff.


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


Gonzalez Rogers said she has a high bar for approving the sort of preliminary injunction that Musk wants however hasn't yet ruled on the demand. She did say she had "considerable concerns" with 2 individuals linked to Microsoft on OpenAI's board - Hoffman and long time Microsoft executive Deanna Templeton, who was a "non-voting observer."


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


Hoffman, a co-founder of LinkedIn, has been on Microsoft ´ s board because shortly after the tech huge purchased the job networking website. He stepped down from OpenAI's board in 2023 to avoid conflicts with his AI startup, Inflection.


Templeton, who Musk also named as an accused, was added as a non-voting member of OpenAI ´ s board in the aftermath 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 issues about such plans on corporate boards.


The judge has actually dealt with a number of tech market cases consisting of 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 a preliminary injunction, in 2020, eight months before the case went to trial.


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


Tuesday's hearing was originally set for January however was held off after Musk's lawyer Marc Toberoff said his house was damaged in the Pacific Palisades wildfire.


Musk, who did not attend the hearing, has actually alleged in the claim that the business are violating the terms of his fundamental contributions to the charity. Judge Gonzalez Rogers called it a "stretch" to claim "irreversible harm" to Musk, and called the case "billionaires vs. billionaires." She questioned why Musk invested tens of millions in OpenAI without a written contract. Toberoff said it was since the relationship between Altman and higgledy-piggledy.xyz Musk at the time was "constructed on trust" and the two were very close.


"That is just a great deal of money" to invest "on a handshake," the judge said.


OpenAI has said Musk ´ s asked for court order would "disable OpenAI ´ s business"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 dispute is a 2017 internal power struggle at the fledgling startup that led to Altman becoming OpenAI ´ s CEO


. Emails revealed by OpenAI reveal Musk had actually also sought to be CEO and lespoetesbizarres.free.fr grew disappointed after two other OpenAI co-founders said he would hold too much power as a significant investor and president if the startup prospered in its goal to attain better-than-human AI known as synthetic general intelligence, or AGI. Musk has actually long voiced issues about how advanced types of AI might threaten mankind.


Altman eventually succeeded in becoming CEO and has actually remained so except for a period in 2023 when he was fired and after that reinstated days later after the board that ousted him was replaced.


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


Musk is not the only one difficult OpenAI's for-profit transition. Facebook and Instagram parent Meta Platforms has actually asked California's lawyer general to block it, and the office of Delaware's attorney general of the United States has said it is reviewing the conversion.


It was not clear Tuesday when the case might go to trial. Musk's lawyers initially said they would be prepared by June after some back-and-forth with the 2 sides the judge suggested it probably won't be until June 2026 at the earliest, however likely early 2027.


O'Brien reported from Providence, Rhode Island.


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