Elon Musk has failed to temporarily stop the commercial restructuring of OpenAI through a lawsuit due to the lack of sufficient evidence.
Elon Musk has again failed to stop the restructuring of OpenAI. In an earlier move he tried with a takeover bid, but the $97.4 billion offer was rejected. Now a judge denies the call to temporary interrupt the restructuring process within OpenAI, Bloomberg writes.
Read more: OpenAI refuses Musk bid of nearly $100 billion
Musk’s lawsuit
In the lawsuit filed by the eccentric tech entrepreneur, Musk accused OpenAI of failing to honour agreements made when he helped found the company in 2015. These statements concern serving as a nonprofit. OpenAI allegedly failed to honor those agreements in 2019 when it accepted a billion-dollar investment from Microsoft. That same year, Musk resigned from the AI developer’s board.
Judge’s ruling
In her ruling, the US judge did not agree with the tech entrepreneur’s claim that Musk did not provide sufficient evidence for his allegations. However, given the public interest, she did rule that Elon Musk may sue OpenAI for the complaint that the restructuring process is illegal.
Meanwhile, OpenAI does not stop the actions to gather additional capital to shape its transition process further. In doing so, the AI developer is said to be aiming for an enterprise value of $300 billion. Softbank, among others, is said to be interested in these investments and is seeking tens of billions of dollars for this purpose. This would make Softbank the largest investor in OpenAI.
Also read: Musk withdraws bid for OpenAI provided ChatGPT maker remains nonprofit