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Although Elon Musk lost his preliminary injunction bid in the OpenAI lawsuit, a federal judge expressed serious legal concerns about the AI company's transition from non-profit to for-profit, offering hope to those opposing the change. US District Judge Yvonne Gonzalez Rogers on Tuesday rejected Musk's request for an injunction to halt OpenAI's transformation into a for-profit company, but noted that significant and irreparable harm could result when public funds are used for such a transition. The judge also mentioned OpenAI's...

In documents recently filed in the U.S. District Court for the Northern District of California, billionaire Elon Musk's lawyers stated that if OpenAI's board can "uphold the mission of the charity" and halt its transition to a for-profit company, Musk will withdraw his proposed $97.4 billion acquisition of the nonprofit organization. The documents emphasized that Musk's acquisition proposal is "serious" and indicated that the OpenAI nonprofit must receive compensation commensurate with what a typical market buyer would pay for its assets.

Meta Platforms recently submitted a letter to California Attorney General Rob Bonta, urging him to prevent OpenAI's plan to transition from a non-profit organization to a for-profit company. According to The Wall Street Journal, the letter was sent by Meta on Thursday, stating that allowing OpenAI to make this conversion would set a concerning precedent, potentially enabling startups to enjoy non-profit status while ultimately shifting to a for-profit model. Meta emphasized in the letter.

Recently, there have been reports that OpenAI is undergoing a significant business transformation and may transition into a for-profit company. According to Reuters, OpenAI is in talks with investors for a large-scale financing round, with a valuation potentially exceeding $150 billion. This transition is closely related to the company's governance structure, especially after CEO Sam Altman took the helm and mentioned the need to "improve our governance structure." The new business model will enable OpenAI to operate under a "capped profit" model.

OpenAI's CEO Sam Altman recently disclosed to shareholders that the company is exploring a change in its governance structure, planning to transform OpenAI from a nonprofit organization into a for-profit public benefit corporation. This change could detach OpenAI from the control of its existing nonprofit board, paving the way for its initial public offering (IPO).