{"id":23250,"date":"2025-03-05T04:40:15","date_gmt":"2025-03-05T05:40:15","guid":{"rendered":"https:\/\/medexperts.pro\/?p=23250"},"modified":"2025-03-05T06:30:15","modified_gmt":"2025-03-05T06:30:15","slug":"judge-denies-musks-request-to-block-openais-for-profit-plan","status":"publish","type":"post","link":"https:\/\/medexperts.pro\/?p=23250","title":{"rendered":"Judge Denies Musk\u2019s Request to Block OpenAI\u2019s For-Profit Plan"},"content":{"rendered":"<div><\/div>\n<p id=\"article-summary\" class=\"css-79rysd e1wiw3jv0\">The court said that Elon Musk could proceed with other parts of a lawsuit he brought against OpenAI last year.<\/p>\n<section class=\"meteredContent css-1r7ky0e\">\n<div class=\"css-s99gbd StoryBodyCompanionColumn\" data-testid=\"companionColumn-0\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">In November, Elon Musk <a class=\"css-yywogo\" href=\"https:\/\/storage.courtlistener.com\/recap\/gov.uscourts.cand.433688\/gov.uscourts.cand.433688.46.0.pdf\" title rel=\"noopener noreferrer\" target=\"_blank\">asked a federal court<\/a> to block OpenAI\u2019s plan to transform itself from a nonprofit into a purely for-profit company.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">On Tuesday, a federal judge in San Francisco denied Mr. Musk\u2019s request, calling it \u201cextraordinary.\u201d But the court allowed Mr. Musk to proceed with other aspects of a <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/08\/05\/technology\/elon-musk-openai-lawsuit.html\" title>lawsuit he filed last year against OpenAI and its chief executive, Sam Altman<\/a>.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Mr. Musk helped create OpenAI as a nonprofit in 2015, along with Mr. Altman and others. In 2018, Mr. Musk left the organization after a battle for control of the company. Mr. Altman then attached OpenAI to a for-profit company so he could raise the billions of dollars needed to build artificial intelligence technologies.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But the nonprofit retained control of the company. Last year, Mr. Altman and his company began working on <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/12\/27\/technology\/openai-public-benefit-corporation.html\" title>a plan to shift control of the company<\/a> from the nonprofit to OpenAI\u2019s investors as a for-profit company.<\/p>\n<\/div>\n<\/div>\n<div data-testid=\"Dropzone-1\"><\/div>\n<div class=\"css-s99gbd StoryBodyCompanionColumn\" data-testid=\"companionColumn-1\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">Soon after, Mr. Musk filed a lawsuit against OpenAI and Mr. Altman, claiming they had breached the company\u2019s founding contract by putting commercial interests ahead of the public good.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Later, Mr. Musk expanded the complaint to include claims that OpenAI had violated antitrust laws by asking investors to agree not to invest in rival companies, including Mr. Musk\u2019s new artificial intelligence company, xAI.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">\u201cWe welcome the court\u2019s decision,\u201d Lindsey Held, an OpenAI spokeswoman, said in a statement. \u201c<a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2024\/03\/05\/technology\/openai-elon-musk-tesla.html\" title>Elon\u2019s own emails<\/a> show that he wanted to merge a for-profit OpenAI into Tesla. That would have been great for his personal benefit, but not for our mission or U.S. interests.\u201d<\/p>\n<p class=\"css-at9mc1 evys1bk0\">Earlier this year, Mr. Musk and a consortium of investors escalated his longstanding feud with Mr. Altman by <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2025\/02\/10\/technology\/elon-musk-openai-bid.html\" title>offering to buy<\/a> the assets of the nonprofit that controls OpenAI for more than $97 billion. OpenAI\u2019s board of directors later rejected the bid.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">But the bid could still complicate Mr. Altman\u2019s efforts to separate the company from the nonprofit board and raise the billions of dollars that OpenAI needs to build new technologies.<\/p>\n<\/div>\n<\/div>\n<div data-testid=\"Dropzone-3\"><\/div>\n<div class=\"css-s99gbd StoryBodyCompanionColumn\" data-testid=\"companionColumn-2\">\n<div class=\"css-53u6y8\">\n<p class=\"css-at9mc1 evys1bk0\">\u201cWe\u2019re pleased the court has offered an expedited trial on the core claims driving this case, which in its words present \u2018urgent\u2019 issues in the public\u2019s interest,\u201d Marc Toberoff, the lawyer representing Mr. Musk, said in a statement to The New York Times.<\/p>\n<p class=\"css-at9mc1 evys1bk0\">(The New York Times has <a class=\"css-yywogo\" href=\"https:\/\/www.nytimes.com\/2023\/12\/27\/business\/media\/new-york-times-open-ai-microsoft-lawsuit.html\" title>sued<\/a> OpenAI and its partner, Microsoft, accusing them of copyright infringement regarding news content related to A.I. systems. OpenAI and Microsoft have denied those claims.)<\/p>\n<\/div>\n<\/div>\n<div data-testid=\"RelatedLinksBlock-5\">\n<div data-testid=\"lazy-loader\"><\/div>\n<\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>The court said that Elon Musk could proceed with other parts of a lawsuit he brought against OpenAI last year.In November, Elon Musk asked a federal court to block OpenAI\u2019s plan to transform itself from a nonprofit into a purely for-profit company.On Tuesday, a federal judge in San Francisco denied Mr. Musk\u2019s request, calling it \u201cextraordinary.\u201d But the court allowed Mr. Musk to proceed with other aspects of a lawsuit he filed last year against OpenAI and its chief executive, Sam Altman.Mr. Musk helped create OpenAI as a nonprofit in 2015, along with Mr. Altman and others. In 2018, Mr. Musk left the organization after a battle for control of the company. Mr. Altman then attached OpenAI to a for-profit company so he could raise the billions of dollars needed to build artificial intelligence technologies.But the nonprofit retained control of the company. Last year, Mr. Altman and his company began working on a plan to shift control of the company from the nonprofit to OpenAI\u2019s investors as a for-profit company.Soon after, Mr. Musk filed a lawsuit against OpenAI and Mr. Altman, claiming they had breached the company\u2019s founding contract by putting commercial interests ahead of the public good.Later, Mr. Musk expanded the complaint to include claims that OpenAI had violated antitrust laws by asking investors to agree not to invest in rival companies, including Mr. Musk\u2019s new artificial intelligence company, xAI.\u201cWe welcome the court\u2019s decision,\u201d Lindsey Held, an OpenAI spokeswoman, said in a statement. \u201cElon\u2019s own emails show that he wanted to merge a for-profit OpenAI into Tesla. That would have been great for his personal benefit, but not for our mission or U.S. interests.\u201dEarlier this year, Mr. Musk and a consortium of investors escalated his longstanding feud with Mr. Altman by offering to buy the assets of the nonprofit that controls OpenAI for more than $97 billion. OpenAI\u2019s board of directors later rejected the bid.But the bid could still complicate Mr. Altman\u2019s efforts to separate the company from the nonprofit board and raise the billions of dollars that OpenAI needs to build new technologies.\u201cWe\u2019re pleased the court has offered an expedited trial on the core claims driving this case, which in its words present \u2018urgent\u2019 issues in the public\u2019s interest,\u201d Marc Toberoff, the lawyer representing Mr. Musk, said in a statement to The New York Times.(The New York Times has sued OpenAI and its partner, Microsoft, accusing them of copyright infringement regarding news content related to A.I. systems. OpenAI and Microsoft have denied those claims.)<\/p>\n","protected":false},"author":1,"featured_media":23252,"comment_status":"close","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[],"class_list":["post-23250","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology"],"_links":{"self":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/23250","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=23250"}],"version-history":[{"count":2,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/23250\/revisions"}],"predecessor-version":[{"id":23253,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/posts\/23250\/revisions\/23253"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=\/wp\/v2\/media\/23252"}],"wp:attachment":[{"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=23250"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=23250"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/medexperts.pro\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=23250"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}