OpenAI, which has gained prominence in the AI industry with its ChatGPT model, is transitioning to a fully for-profit public benefit corporation, a move that Musk's lawyers argue is aimed at cementing their dominance in the AI industry by limiting competitors' access to investment capital. OpenAI has dismissed Musk's claims as baseless. Meanwhile, Microsoft, a major backer of OpenAI, has been trying to distance itself from the company amid scrutiny from the Federal Trade Commission over its influence in the AI industry.
Key takeaways:
- Elon Musk has filed an injunction to stop OpenAI from becoming a fully for-profit business and to prevent it from blocking its investors from funding competing AI firms.
- Musk's legal team expanded their complaint last month, accusing OpenAI and Microsoft of breaching antitrust laws by forcing investors to agree not to fund rival companies.
- OpenAI, originally a nonprofit, is trying to transition to a fully for-profit public benefit corporation, which would make it more attractive to investors.
- Musk's AI startup, xAI Corp, is a prominent rival to OpenAI and has already raised over $6 billion at a $24 billion valuation.