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Elon Musk seeks injunction preventing OpenAI from becoming for-profit

Dec 01, 2024 - businessinsider.com
Elon Musk is seeking a court injunction against OpenAI to prevent its transition from a non-profit to a for-profit entity, according to a recent court filing. Musk's lawyers allege that OpenAI has engaged in anticompetitive behavior, discouraging investors from partnering with competitors such as Musk's company xAI, and has wrongfully obtained competitively sensitive information through its ties with Microsoft. The injunction, if granted, would halt OpenAI's for-profit transition and its partnerships with Microsoft.

The filing is part of an ongoing legal dispute between Musk and OpenAI CEO Sam Altman, who were both part of a group that co-founded or funded OpenAI as a non-profit in 2015. Musk, who invested between $45 and $50 million in the company, served on its board until 2018. The feud has escalated over OpenAI's direction, Musk's role in its success, and AI development. OpenAI, now worth over $150 billion, announced plans to restructure as a for-profit entity in September.

Key takeaways:

  • Elon Musk is seeking an injunction against OpenAI to prevent its transition from a nonprofit to a for-profit entity, alleging anticompetitive behavior and wrongful sharing of competitively sensitive information.
  • The lawsuit also implicates Microsoft and Reid Hoffman, co-founder of LinkedIn, alleging that their partnership with OpenAI resulted in monopolistic market practices and violations of antitrust law.
  • If granted, the injunction would halt OpenAI's for-profit transition and its partnerships with Microsoft.
  • The legal battle between Musk and OpenAI CEO Sam Altman has escalated this year, with Musk arguing that he was deceived into co-founding the company.
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