Judge Rejects Musk Bid to Prevent OpenAI For-Profit Switch

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Elon Musk has recently filed a case in Northern California Court to prevent OpenAI from transforming from a non-profit to a for-profit business company. However, all the efforts Musk made went in vain when the federal judge rejected the request. 

Musk claims that OpenAI forgets its goal of making AI research available to everyone on a non-profit basis. Yet, the judge also stated that the kind of change using donations would have harmful effects. 

Elon Musk Prevent OpenAI from Becoming a For-Profit Company

Elon Musk, the richest person in the world and Tesla Motors owner, sued in court to block OpenAI from becoming a for-profit entity. As a co-founder of OpenAI, he opposed that the startup violated the laws. Not only this, it also broke Musk’s trust in fulfilling the purpose. He wanted OpenAI to adhere to its goal but without making a profit.

California Court Denies the Idea

In a court hearing held on Tuesday, a Northern California judge rejected Musk’s request. By doing this, Yvonne Gonzalez Rogers promoted the idea that OpenAI must make money and become a for-profit company. It would eliminate the need for public donations.

Resources further revealed details of the hearing; the court judge emphasized that Elon did not bring enough evidence necessary to validate the court order against OpenAI.

At the same time, Miss Rogers said the court is open to expediting a trial anytime this year to determine whether OpenAI's transition from a nonprofit to a for-profit business was unlawful. She emphasized that there could be major negative effects from using public donations to finance this kind of change.

Musk’s Lawsuit

This ruling is the most recent step in Musk's legal battle against OpenAI and Sam Altman, its CEO. Elon Musk wants OpenAI to make AI research available to everyone non-profitably. This goal was long ago decided in 2015. However, the startup now deviates from its original mission.

To your surprise, the changes made Musk disappointed, and he decided to buy OpenAI by offering its CEO $97.4 million. It seemed like the company’s board members did not like the idea and instantly neglected it.

Elon Musk never minded the offer being rejected. According to him, the time is near when the Artificial Intelligence Company will encounter challenges after becoming a conventional business model.