Elon Musk has requested a federal court to block OpenAI from pursuing an “illegal” conversion to a for-profit business and a halt to protect AI startups and the public from OpenAI’s growing dominance.
In his latest court filing, Musk continued his months-long criticism of Sam Altman following their joint effort nine years ago to establish OpenAI as a nonprofit focused on generative AI for societal benefit.
Musk reiterated his claims that OpenAI breached its promises and abandoned its founding mission when it accepted significant investments from Microsoft starting in 2019. He warns that without immediate court intervention, Altman’s “behemoth” could soon overpower its competitors.
Elon Musk files for injunction to halt OpenAI’s transition to a for-profit https://t.co/WMoN08EdZ0
— TechCrunch (@TechCrunch) November 30, 2024A spokesperson for OpenAI dismissed Musk’s accusations, calling them “baseless” and “utterly without merit.”
According to Bloomberg News, Altman’s company is in early discussions with the California Attorney General’s office about changing its corporate structure.
Elon Musk targets OpenAI’s for-profit transition in a new filing https://t.co/dle6ArhMVf
— The Verge (@verge) November 30, 2024Musk first filed a lawsuit against OpenAI in California state court in February, withdrew it in June, and then refiled it in federal court in Oakland in August. His request seeks an injunction to pause OpenAI’s restructuring while the legal proceedings continue. He also asks the judge to block OpenAI from forming agreements with investors that Musk claims would violate federal antitrust laws by funding “no competitors.”
Read: Elon Musk Drops Lawsuit Against OpenAI and CEO Sam Altman
Musk’s lawyers argue that OpenAI forfeited its antitrust protections when it partnered with Microsoft for profit, stating, “It cannot lumber about the marketplace as a Frankenstein, stitched together from whichever corporate forms serve the pecuniary interests of Microsoft and Altman.”
Musk’s AI startup, xAI, launched last year and was recently valued at $50 billion. Its value has more than doubled since May.
