Musk may still have the chance to thwart the conversion of for profit
Elon Musk lost the Last battle for his trial against Openai this weekBut a federal judge seems to have given Musk – and others who oppose OpenAi’s for -profit conversion – reasons of hope.
The pursuit of Musk against Openai, who also appoints the CEO of Microsoft and Openai, Sam Altman, as defendants, accuses Openai of abandoning his non -profit mission to guarantee that his research on AI benefits all of humanity. OPENAI was founded as a non -profit organism in 2015, but converted into a “profitable” structure in 2019, and is now looking to restructure once again in a public benefits company.
Musk had asked for a preliminary injunction at Stop the transition from Openai to a for -profit goal. On Tuesday, a federal judge in northern California, the judge of the American district court, Yvonne Gonzalez Rogers, refused Musk’s request – but expressed some jurisprudential concerns concerning the expected conversion of Openai.
Judge Rogers declared in his decision denying the injunction that “significant and irreparable damage were incurred” when public money is used to finance the conversion of a non -profit organization to a profit. OpenAi’s non -profit organization currently has a majority participation in OpenAi’s for -profit operations, and it would have To receive billions of dollars in compensation in the context of the transition.
Judge Rogers also noted that several Openai co -founders, including Altman and President Greg Brockman, have made “fundamental commitments” so as not to use OPENAI “as a vehicle to get rich”. In her decision, judge Rogers said the court was ready to offer an accelerated trial in the fall of 2025 to resolve business restructuring disputes.
Marc Toberoff, a lawyer representative Musk, told Techcrunch that Musk’s legal team was satisfied with the judge’s decision and intended to accept the offer for an accelerated trial. Openai did not say if it would also accept and did not immediately respond to the request for comments from Techcrunch.
Judge Rogers’ comments on OpenAi’s for profit conversion is not exactly good news for the company.
Tyler Whitmer, a lawyer representing Encode, a non -profit organization that has filed an Amicus thesis In the event, saying that OPENAI’s profit conversion could compromise the security of the AI, told Techcrunch that the decision of judge Rogers puts a “cloud” of regulatory uncertainty on the board of directors of Openai. The California and Delaware general prosecutors are already investigating the transition, and the concerns that judge Rogers raised could encourage them to probe more aggressively, said Whitmer.
There were victories for Openai in the decision of judge Rogers.
The proof that the Musk’s legal team presented to show that Optai has enabled a contract to accept around $ 44 million in Musk donations, and then take measures to convert to a for -profit goal, was “insufficient for the purpose of the high charge required for a preliminary injunction,” said Judge Rogers. In his decision, the judge stressed that certain emails subject as documents showed Musk himself considering that Optai could become a for-profit business one day.
Justice Rogers also said that the Musk IA company, XAI, an applicant in the case, had not shown that it would suffer “irreparable damage” if Openai’s for profit conversion would not be enjoined. Judge Rogers was also not convinced by the arguments of the complainants that the employee and investor close to Openai, Microsoft, would violate Lock administration The laws and that Musk presents himself under a provision of California prohibiting auto-dalton.
Musk, formerly a key support from Openai, positioned himself as one of the largest opponents in the company. XAI competes directly with Openai in the development of border AI models, and Musk and Altman now find themselves taking a tour for legal and political power under a new presidential administration.
The challenges are raised for Openai. The company would need to complete its for -profit conversion by 2026, or part of the recently raised Openai capital could debt.
At least one former OpenAi employee is afraid of the implications for AI governance should successfully open its transition. Addressing Techcrunch on condition of anonymity to protect his future job prospects, the former employee said they thought that the startup conversion could threaten public security.
Part of the motivation behind the non -profit structure of Openai consisted in ensuring that the reasons for profit do not prevail over its mission: to ensure that the search for IA benefits all humanity. However, if Openai becomes a traditional lucrative company, there can be little to prevent it from prioritizing profit above all, the former employee told Techcrunch.
The ex-employee added that the non-profit structure of Openai was one of the main reasons why they joined the organization.
In a few months, it should become clearer in the number of OpenAi obstacles to overcome in its for -profit transition. Regulators, AI security defenders and technological investors monitor with great interest.
