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Musk may still have a chance to thwart OpenAI’s for-profit conversion
Elon Musk lost the latest battle in his lawsuit against OpenAI, but a judge appears to have given the billionaire reasons to be hopeful.
Judge Rogers also said that Musk’s AI company, xAI, a plaintiff in the case, failed to demonstrate that it would suffer “irreparable harm” should OpenAI’s for-profit conversion not be enjoined. Judge Rogers was also unpersuaded by the plaintiffs’ arguments that OpenAI’s close collaborator and investor, Microsoft, would violate interlocking directorate laws and that Musk has standing under a California provision prohibiting self-dealing. xAI competes directly with OpenAI in developing frontier AI models, and Musk and Altman now find themselves jockeying for legal and political power under a new presidential administration.
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