OAKLAND, Calif. (AP) - Elon Musk's lawyers took on with OpenAI in court Tuesday as a federal judge weighed the billionaire's ask for a court order that would block the ChatGPT maker from transforming 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 harmed if she does not intervene to stop OpenAI from moving on with its transition from a nonprofit research study laboratory to a for-profit corporation.
But the judge also raised concerns about OpenAI and its relationship with business partner Microsoft and said she wouldn't stop the case from relocating to trial as soon as next year so a jury can choose.
"It is plausible that what Mr. Musk is stating holds true. We ´ ll learn. He ´ ll sit on the stand," she said.
Musk, an early OpenAI investor 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 betrayed its starting aims as a nonprofit research study laboratory benefiting the general public excellent. Musk had actually invested about $45 million in the startup from its starting up until 2018, his legal representative said Tuesday.
Musk escalated the legal disagreement late last year, including brand-new claims and accuseds and requesting a court order that would stop OpenAI ´ s prepares to transform itself into a for-profit organization more completely. Musk likewise added his own AI business, xAI, as a plaintiff.
Also targeted by Musk's claim is OpenAI's close company partner Microsoft and tech business owner Reid Hoffman, a previous OpenAI board member who also rests on Microsoft's board.
Gonzalez Rogers said she has a high bar for authorizing the type of preliminary injunction that Musk wants however hasn't yet ruled on the demand. She did state she had "considerable concerns" with two individuals connected 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 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 in fact should not exist," she said.
Hoffman, a co-founder of LinkedIn, has been on Microsoft ´ s board because shortly after the tech huge bought the job networking site. He stepped down from OpenAI's board in 2023 to avoid disputes with his AI startup, Inflection.
Templeton, who Musk likewise called as a defendant, was included 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, she was dropped from the OpenAI board as U.S. antitrust enforcers were expressing issues about such plans on business boards.
The judge has managed a variety of tech industry 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 also the last time she approved a preliminary injunction, in 2020, eight months before the case went to trial.
Then-President Barack Obama designated Gonzalez Rogers to the federal bench in 2011.
Tuesday's hearing was originally set for January however was postponed after Musk's lawyer Marc Toberoff said his home was destroyed in the Pacific Palisades wildfire.
Musk, who did not attend the hearing, disgaeawiki.info 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 "irreparable damage" to Musk, and called the case "billionaires vs. billionaires." She questioned why Musk invested 10s of millions in OpenAI without a composed agreement. Toberoff said it was since the relationship in between Altman and Musk at the time was "built on trust" and the 2 were really close.
"That is simply a great deal of cash" to invest "on a handshake," the judge said.
OpenAI has said Musk ´ s requested court order would "disable OpenAI ´ s organization"and mission to the benefit of Musk and his own AI company and is based upon "improbable" legal claims.
At the heart of the conflict is a 2017 internal power battle at the fledgling startup that led to Altman becoming OpenAI ´ s CEO
. Emails disclosed by OpenAI show Musk had actually also sought to be CEO and grew annoyed after 2 other OpenAI co-founders said he would power as a significant shareholder and primary executive if the startup prospered in its goal to attain better-than-human AI referred to as synthetic basic intelligence, or AGI. Musk has actually long voiced concerns about how innovative types of AI could threaten humanity.
Altman eventually prospered in becoming CEO and has remained so except for a duration in 2023 when he was fired and then renewed days later after the board that ousted him was replaced.
OpenAI has actually sought to show Musk ´ s early assistance for the concept of making OpenAI a for-profit service so it might raise money for the hardware and computer power that AI requires.
Musk is not the only one difficult OpenAI's for-profit shift. Facebook and Instagram moms and dad Meta Platforms has actually asked California's attorney general of the United States to obstruct it, and the office of Delaware's lawyer general has said it is examining the conversion.
It was not clear Tuesday when the case may go to trial. Musk's legal representatives at first said they would be prepared by June after some back-and-forth with the two sides the judge indicated 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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