In Oakland, California, on Feb 4, a federal judge indicated that Elon Musk's legal case against OpenAI regarding its transition to a for-profit entity might proceed to trial. The judge, Yvonne Gonzalez Rogers, stated during the court session that Musk would need to testify in court before a potential jury decision.
The ongoing public dispute between Elon Musk and OpenAI CEO Sam Altman centers on OpenAI's shift from a nonprofit to a for-profit corporation to access necessary capital for advancing artificial intelligence technology. Musk, who co-founded OpenAI in 2015 with Altman but later departed to establish the competing AI startup xAI, has raised concerns about the shift in focus from humanitarian goals to profit-making.
While Judge Rogers did not immediately rule on Musk's request for a preliminary injunction against OpenAI, she indicated that further evidence might be required for a future ruling. The legal dispute reflects high stakes as OpenAI's potential valuation and negotiations with SoftBank are linked to its restructuring away from nonprofit status.
During the proceedings, OpenAI's attorneys argued that the transition to a for-profit status is crucial for achieving the organization's mission, despite the uncommon nature of such a conversion for a venture capital-backed entity, according to legal expert Rose Chan Loui.