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Elon Musk files injunction against OpenAI to stop its move to become a for-profit company

Dec 02, 2024 - businesstoday.in
Elon Musk has filed a preliminary injunction to stop OpenAI's transition to a for-profit model, accusing the organization and its affiliates, including Microsoft, of anticompetitive practices. Musk's legal team alleges that OpenAI's shift harms competitors, including Musk's own AI company, xAI, by pressuring investors to avoid funding rivals, improperly sharing proprietary data with Microsoft, and experiencing governance issues. The lawsuit also raises concerns about conflicts of interest involving key figures like OpenAI CEO Sam Altman and Microsoft.

OpenAI, originally a nonprofit founded in 2015, is transitioning to a fully for-profit model, a move Musk claims endangers its commitment to public interest. Musk, who co-founded OpenAI but left in 2018, alleges that OpenAI is blocking xAI's funding opportunities. OpenAI has dismissed Musk's claims as unfounded, arguing that halting its transition could have severe financial repercussions. Microsoft, a significant OpenAI partner, has not commented on the filing.

Key takeaways:

  • Elon Musk has filed a preliminary injunction to halt OpenAI's transition to a for-profit model, accusing the organisation and its affiliates, including Microsoft, of engaging in anticompetitive practices.
  • Musk's legal team alleges that OpenAI is pressuring investors to avoid funding rivals like Musk's own AI company, xAI, and improperly sharing proprietary data with Microsoft.
  • The lawsuit also raises concerns about conflicts of interest involving key figures at OpenAI and Microsoft, accusing them of using their roles to influence deals.
  • In response, OpenAI dismissed Musk's claims as unfounded and argued that halting its transition could have severe financial repercussions.
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