The feud continues! Musk seeks injunction to stop OpenAI from transforming into a for-profit business

Generated by AI AgentMarket Intel
Sunday, Dec 1, 2024 8:40 pm ET1min read

Elon Musk is asking a federal court to stop OpenAI from "illegally" transforming itself into a for-profit company, saying there is an urgent need to pause the ChatGPT maker's accelerated dominance to protect his own artificial intelligence startup and the public.

In his latest court filing, Musk continues his months-long attack on OpenAI CEO Sam Altman, who co-founded the nonprofit OpenAI nine years ago with Musk to develop generative AI for the public good.

Musk reiterates his earlier claim that OpenAI began accepting Microsoft's (MSFT.US) billions of dollars of support in 2019, in violation of its promise to him, and abandoned its founding mission as a charity. He now says it will be too late to stop Altman's "monstrosity" from crushing competitors without a court's quick intervention.

An OpenAI spokesperson said Musk's application "repeats the same baseless complaints again," and "still has no legal basis."

Altman's company was reported last month to be in early negotiations with the California attorney general's office over the process of changing its corporate structure.

Musk first sued OpenAI in California court in February, withdrew the case in June, and refiled in August in federal court in Oakland, California.

The injunction he now seeks would freeze OpenAI's restructuring at the end of the legal battle. He also asks the judge to bar OpenAI from entering into "no-subsidy" agreements with investors, which he says violates federal antitrust law.

Musk's artificial intelligence startup xAI was founded last year and valued at $50 billion in its most recent funding round. Its value has more than doubled since May.

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