On Tuesday, a federal judge decided that parts of Elon Musk’s lawsuit against OpenAI will advance to trial. This legal battle centers on Musk’s efforts to halt OpenAI’s transition to a for-profit model.
What Happened: U.S. District Judge Yvonne Gonzalez Rogers, based in Oakland, California, said Musk will be required to testify in court, reported Reuters.
“Something is going to trial in this case,” she stated, indicating that a jury will ultimately determine the outcome.
See Also: Palantir’s Shyam Sankar: US Is At War With China In AI—And The Time To Act Was ‘Yesterday’
The lawsuit, initiated by Musk last year, contests OpenAI’s shift from a nonprofit to a for-profit organization. Musk argues that the original mission was to develop AI for the benefit of humanity, not for profit.
OpenAI, which was co-founded by Musk in 2015, maintains that the transition is crucial to secure funding for AI development.
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Why It Matters: Last year in December, OpenAI outlined its plans to evolve into a Delaware Public Benefit Corporation (PBC) to align with its mission of ensuring artificial general intelligence (AGI) benefits all humanity.
OpenAI’s fundraising efforts, including a $6.6 billion round in October and a potential $25 billion round with SoftBank Group SFTBF SFTBY, depend on this restructuring.
Last month it was reported that SoftBank was in talks to lead a new funding round for OpenAI, potentially raising up to $40 billion. This investment would value the ChatGPT-maker at $300 billion.
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