 "Elon Musk asks US court to block OpenAI's for-profit conversion, alleges anticompetitive practices")
Elon Musk’s legal battle with OpenAI and Microsoft has taken another dramatic turn, as his attorneys filed for an injunction on Friday, accusing both companies of engaging in anticompetitive practices.
The lawsuit seeks to halt OpenAI’s controversial shift from a nonprofit to a for-profit model. Prominent names, including OpenAI CEO Sam Altman, President Greg Brockman, Microsoft’s Dee Templeton, and LinkedIn co-founder Reid Hoffman, have been named as defendants in the case.
Allegations of anti-competitive conduct
This legal wrangling follows Musk’s earlier lawsuit against OpenAI, filed earlier this year, which criticised the company for allegedly abandoning its founding mission of advancing AI “for the benefit of humanity.” That case was later withdrawn, but Musk reignited his claims in August by filing a fresh lawsuit in a California federal court, this time adding Microsoft to the mix.
Musk’s latest motion accuses OpenAI and Microsoft of several antitrust violations, including allegedly discouraging investors from supporting rival companies like his own xAI. The filing also claims that OpenAI benefited from “wrongfully obtained” sensitive information, allegedly shared through its close relationship with Microsoft. Musk’s legal team argues that these practices go against fair competition and harm both the public and competitors in the AI industry.
The filing takes issue with OpenAI’s transition to a for-profit entity, claiming the shift is riddled with practices that breach its original charitable mission. Musk’s attorneys warn that allowing these alleged behaviours to persist could have serious repercussions for both the plaintiffs and the broader public interest.
OpenAI’s for-profit controversy
OpenAI’s shift to a for-profit model has been under scrutiny for several months, sparking debates about the balance between profit motives and ethical AI development.
Critics, including Musk, argue that the organisation has strayed far from its founding principles. However, OpenAI has maintained that the change is necessary to support its ambitious goals in AI development.
OpenAI responds to Musk’s claims
In response to the latest filing, an OpenAI spokesperson dismissed Musk’s allegations as repetitive and baseless. They described this as Musk’s “fourth attempt” to challenge the company, stating that the claims lack merit and fail to provide new evidence.
As the case unfolds, it highlights the growing tensions and power struggles within the rapidly evolving AI industry.
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