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Elon Musk asks US court again to block OpenAI's for-profit conversion

Dec 01, 2024 - fortune.com
Elon Musk has requested a US court to prevent OpenAI, a company he co-founded, from becoming a for-profit enterprise. Musk's attorneys filed the injunction on behalf of his AI startup, xAI, asking the court to stop OpenAI from allegedly preventing its investors from funding rival companies. Musk has accused OpenAI of barring its investors from investing in competitors, which could disadvantage his own startup in the highly competitive and lucrative AI sector.

OpenAI, which was initially a non-profit, has transitioned to a "capped" for-profit enterprise and is seeking to become a for-profit public benefit corporation. Musk, who left the company in 2018, has expressed discomfort with the profit-driven direction the company took under CEO Sam Altman. He sued OpenAI in March, accusing it of deviating from its original non-profit mission of making AI research accessible to all. OpenAI has dismissed Musk's lawsuit and his support for open-source AI development as a case of sour grapes following his departure from the company.

Key takeaways:

  • Elon Musk has asked a US court to prevent OpenAI from becoming a for-profit enterprise, alleging that it bars its investors from funding competing companies.
  • Musk co-founded OpenAI in 2015 but left in 2018 due to discomfort with the profit-driven direction the company was taking under CEO Sam Altman.
  • OpenAI, which was initially a non-profit, has switched to a capped for-profit enterprise and is seeking to become a for-profit public benefit corporation.
  • Musk filed a lawsuit against OpenAI in March, accusing it of breaking its original non-profit mission to make AI research available to all.
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