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Elon Musk Amplifies Legal Battle Against OpenAI with New Antitrust Allegations

Word on the StreetTuesday, Nov 26, 2024 11:00 pm ET
1min read

In recent developments, the well-known American entrepreneur Elon Musk has escalated his lawsuit against OpenAI, an influential entity in the field of artificial intelligence. Musk submitted a new, expanded complaint to the Northern District of California, adding over 20 pages to his initial filing from August. The revised lawsuit now includes additional antitrust allegations and names both Microsoft and California’s Attorney General Rob Bonta as defendants.

The crux of Musk's allegations is that OpenAI is attempting to monopolize the generative artificial intelligence market. He claims that both Microsoft and OpenAI, already influential in this sector, are hindering competition by requiring investors not to finance other initiatives, such as Musk's own AI venture, xAI. Furthermore, Musk criticizes OpenAI's plan to recruit 1500 employees at a cost of $1.5 billion, arguing that such high-paying job offers limit opportunities for other companies to thrive.

Musk has also voiced concerns regarding OpenAI's path towards militarizing AI technologies. He noted the removal of clauses that once prohibited the use of AI technologies for military applications and reported collaborations with the U.S. Department of Defense. Musk warns that these actions could propel AI technology into military applications, escalating potential risks significantly. However, OpenAI dismissed these claims as unfounded, asserting that their operations adhere strictly to market norms, while Microsoft, OpenAI’s collaborator, has yet to comment.

Notably, Musk was originally one of OpenAI’s founders but stepped down from the board in 2018. He initiated legal action in February, accusing OpenAI of drifting from its nonprofit roots and breaching founder agreements. At that time, Musk argued that OpenAI had transformed into a profit-centered, closed-source entity, contrary to its original mission to provide open-access research to the public. After withdrawing the suit in June, Musk reinstated it in August, and by October, OpenAI countered by requesting the court to dismiss the case, citing it as harassment.

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