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Elon Musk targets OpenAI’s for-profit transition in a new filing

Nov 30, 2024 - theverge.com
Elon Musk's attorneys have filed a new motion in his lawsuit against OpenAI, seeking a preliminary injunction to prevent the company from becoming a for-profit enterprise. They have also requested the court to prohibit the company from continuing alleged practices that they claim violate US antitrust laws. The lawyers argue that due to CEO Sam Altman's alleged self-dealing, OpenAI might lack sufficient funds to pay damages if Musk wins the lawsuit.

The lawyers allege that OpenAI and Microsoft have violated the Sherman Act by discouraging investors from funding their competitors. They also claim that OpenAI has wrongfully obtained competitively sensitive information through its connections with Microsoft, which they argue is a violation of the Clayton Act. They further assert that Microsoft's board seat at OpenAI was to coordinate business decisions with the company. OpenAI has not yet responded to these allegations.

Key takeaways:

  • Elon Musk's attorneys have filed a new motion in his lawsuit against OpenAI, asking for a preliminary injunction to stop the company from becoming a for-profit enterprise.
  • The lawyers also want the judge to forbid OpenAI from continuing alleged practices that they claim violate US antitrust laws.
  • They argue that OpenAI and Microsoft have told investors not to fund their mutual competitors, which they say violates the Sherman Act. They also allege that OpenAI benefits from competitively sensitive information obtained through Microsoft connections, which they claim is prohibited under the Clayton Act.
  • The motion follows reports of OpenAI's intent to become a for-profit business and that it recently began early talks with regulators to move its structural change forward.
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