Accusing OpenAI and its affiliates, including Microsoft, of engaging in anticompetitive practices, Elon Musk has filed a preliminary injunction to halt the ChatGPT maker’s transition to a for-profit model. Musk's legal team claims that OpenAI's shift from its original nonprofit mission harms competitors, including Musk's own AI company, xAI. Musk's attorneys allege that OpenAI is pressuring investors to avoid funding rivals like xAI, improperly sharing proprietary data with Microsoft.
The filing names several individuals and entities, including OpenAI CEO Sam Altman, President Greg Brockman, Microsoft, Reid Hoffman, and Dee Templeton.
OpenAI was founded in 2015 as a nonprofit with a mission to democratise AI research. It however, adopted a capped-profit structure in 2019 and is now transitioning to a fully for-profit model.
According to Musk, this transformation endangers its commitment to public interest and is driven by a desire to attract large investments. Musk, who co-founded OpenAI, left in 2018 due to disagreements over its direction. The billionaire claims to have invested $44 million in the organisation.
Musk's new company, xAI was launched in 2023 and competes directly with OpenAI. The company recently introduced an AI model called Grok, integrated with Musk's social platform X. Musk's legal team alleges that OpenAI is blocking xAI's funding opportunities by discouraging investors from supporting both firms.
OpenAI reportedly asked participants in its latest funding round to refrain from backing competitors.
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