Elon Musk
Elon Musk, through his attorneys, has filed a motion for a preliminary injunction against OpenAI, its co-founders, and investor Microsoft. The motion, submitted to the U.S. District Court for the Northern District of California, aims to prevent OpenAI from fully transitioning to a for-profit company and accuses it of anticompetitive behaviour.
The filing alleges that OpenAI, alongside its CEO Sam Altman, President Greg Brockman, and others, has discouraged investors from backing competitors like Musk’s AI company, xAI. It also claims OpenAI benefitted from confidential information shared through its partnership with Microsoft, reports TechCrunch. Additionally, Musk’s legal team argues that OpenAI is engaging in self-serving transactions, including a deal with Stripe, a company in which Altman holds significant financial interests.
Also read: Elon Musk accuses OpenAI and Microsoft of stifling competition in AI industry
Musk, who co-founded OpenAI in 2015 but left in 2018, has long criticised the company for straying from its original nonprofit mission. He claimed in previous complaints that OpenAI misused over $44 million he donated, leveraging his concerns about AI’s risks. OpenAI, which began as a nonprofit, shifted to a “capped-profit” model in 2019 and is now transitioning to a fully for-profit structure. Musk’s motion seeks to pause this process, citing potential harm to xAI and the public.
“Plaintiffs and the public need a pause,” Musk’s attorneys wrote. “An injunction to preserve what is left of OpenAI’s nonprofit character, free from self-dealing, is the only appropriate remedy.”
“Maintaining OpenAI’s charitable status pending final resolution and halting further self-dealing transactions by Altman protect both the organization’s founding mission and the public interest in proper administration of charities,” Musk’s attorneys said in the filing.
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OpenAI denies the accusations, calling Musk’s claims “blusterous” and “without merit.” An OpenAI spokesperson stated, “Elon’s fourth attempt, which again recycles the same baseless complaints, continues to be utterly without merit.”
With xAI recently raising $5 billion, Musk’s legal battle appears to center on broader concerns about market competition and OpenAI’s rapid shift away from its nonprofit roots.