A federal judge was skeptical of Elon Musk's claim that if Open was allowed to proceed with the transition to a for-profit business, he would be irreparable harm, but the AI startup was founded as A. He welcomed the possibility of a trial to resolve the billionaire lawsuit against the company. Non-profit organization.
AP News Report At this week's court hearing, US District Judge Yvonne Gonzalez Rogers considered a court order request to stop AI companies from converting them into commercial companies, and solicitors representing Elon Musk and Open. I heard the discussion from. The judge described Musk's irreparable harm claims as “stretching,” but also raised concerns about his relationship with Openai with business partner Microsoft.
Musk, an early investor and former Openai board member, filed a lawsuit against the company last year, initially in California court and later in federal court. He argued that Openai had betrayed its establishment principle as a non-profit research lab dedicated to benefiting public goods. His lawyers say Musk had invested around $45 million in startups since its founding until 2018.
Late last year, Musk escalated the legal dispute by adding new claims and defendants, including his own AI company Xai as plaintiff. He also sought a court order to halt Openai's plans to move entirely into a for-profit business. The lawsuit also targeted Openai's close business partners, Microsoft and Tech entrepreneur Reid Hoffman.
Breitbart News previously reported that “Godfather of AI” Geoffrey Hinton came out in support of Musk's lawsuit.
Hinton, often referred to as the “AI Godfather” of groundbreaking work in neural networks, has issued a statement through Encode, a youth-driven advocacy group for human-centered AI. In a statement, Hinton criticized Openai's decision to abandon its nonprofit status, saying, “Openai was established as an explicitly focused nonprofit organization, and made various safety-related promises in its charter. I received a large number of taxes and other benefits from the status of a nonprofit. If you allow it to tear all of it when it gets inconvenient, you'll get a very bad message to other actors in the ecosystem. .”
Openai was launched in 2015 as a non-profit research organization with a mission to ensure that artificial intelligence benefits all of humanity. However, the company has recently taken steps to move to commercial institutions, raising concerns among some co-founders, including Mask.
During the hearing, Judge Gonzalez Rogers expressed “significant concern” about the presence of two individuals with ties to Microsoft on the Open board. Reed Hoffman and Deana Templeton are Microsoft executives who served as “non-voters.” The judge questioned the purpose of Templeton's existence on the board if he did not convey information to Microsoft.
Hoffman, a co-founder of LinkedIn, has been on Microsoft's board of directors since the tech giant acquired the job networking site. He resigned from Openai's board of directors in 2023, avoiding conflict with AI startup Indo. Templeton, who was also appointed as a Musk defendant, was added to Openai's board of directors as a non-voting member following CEO Sam Altman's exile, but was later amid concerns from US antitrust enforcers. I fell out.
The judge, appointed to the federal bench in 2011 by then-President Barack Obama, handled several well-known tech industry cases, including the dispute between Apple and Epic Games. She said the mask incident was “nothing” in the Apple-Epic Games case.
Musk's lawyer Mark Toberov explained that the billionaire had invested tens of millions of people in Openry without a written contract due to the close relationship and trust between Musk and Altman at the time. The judge said it is unusual to invest “a lot of money” based on a “handshake.”
Openai argued that Musk's requested court order “debilitates” its business and mission, benefiting Musk and his own AI company, claiming that legal claims are “far”. It's. The conflict stems from the 2017 internal power struggle at startups, resulting in Altman becoming CEO. The email disclosed by Openai said that Musk sought CEO position, but if the company achieves its goal of developing artificial general information, he will be able to do much of the strength as a major shareholder and CEO. It shows that it faced resistance from other co-founders who believe it will hold. .
In addition to Musk's challenge, Openai's for-profit transition also faces scrutiny from other stakeholders. The meta of Facebook and Instagram's parent company Mark Zuckerberg asked the California Attorney General to block the move, but the Delaware Attorney General's office is considering converting.
The AP contributed to this report.
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Lucas Nolan is a reporter for Breitbart News, which covers the issues of freedom of speech and online censorship.
