Elon Musk Seeks Injunction to Stop OpenAI’s Shift to For-Profit Model
Attorneys for Elon Musk have submitted a motion for a preliminary injunction against OpenAI, its co-founders, and partner Microsoft, alleging anticompetitive activities that undermine the company’s original nonprofit mission. The filing was made in the U.S. District Court for the Northern District of California, accusing the parties involved—including OpenAI CEO Sam Altman and others—of several illicit actions.
Key accusations include:
- Discouragement of Investor Support: Musk’s legal team claims that OpenAI has discouraged potential investors from supporting Musk’s AI venture, xAI.
- Use of Misappropriated Information: They allege that OpenAI has gained access to competitively sensitive information through its ties with Microsoft.
- Transition to For-Profit Status: The injunction seeks to halt OpenAI from converting to a for-profit model and transferring any material assets, including intellectual property.
- Conflicts of Interest: The lawsuit claims that OpenAI has entered into agreements with entities in which the defendants hold significant financial interests.
Musk’s attorneys argue that failing to grant the injunction would result in "irreparable harm," stating the need for a pause to preserve OpenAI’s nonprofit character and protect public interest.
This lawsuit follows Musk’s earlier attempt to pin the blame on OpenAI for deviating from its altruistic origins. Although a previous lawsuit was dropped, it was reintroduced with new defendants, including Microsoft and key figures like Reid Hoffman. Musk maintains he was defrauded of over $44 million he donated to OpenAI, citing concerns over AI’s existential risks.
Musk formed xAI last year and launched Grok, a generative AI model that integrates with social platform X (formerly known as Twitter). His legal filings claim that OpenAI’s funding practices have been detrimental to xAI, with reports indicating that OpenAI pressured investors to refrain from backing competitors, including Musk’s firm.
Additionally, Musk’s attorneys claim ongoing illegal sharing of proprietary information between OpenAI and Microsoft and suggest conflicts of interest among key players. For instance, OpenAI’s selection of Stripe as their payment processor may breach antitrust laws, considering Altman’s financial interests in the payment platform.
Musk’s motion for an injunction reflects concerns over OpenAI’s financial viability and operational integrity if it continues its current trajectory. His legal counsel argues that without intervention, OpenAI risks significantly changing its nonprofit mission and becoming untraceable should the court rule in Musk’s favor later on.
In response, OpenAI labeled Musk’s lawsuit as "baseless" and reiterated its commitment to its original mission. The company had previously attempted to dismiss Musk’s case, calling it without merit.
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