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

Elon Musk’s Lawyers File Motion to Stop OpenAI’s Transition to For-Profit Enterprise

Musk’s Lawsuit Against OpenAI

In a new motion filed late Friday in his lawsuit against OpenAI, Elon Musk’s attorneys have asked for a preliminary injunction to stop OpenAI from transitioning to a for-profit enterprise, reports TechCrunch. They also asked the judge to forbid the company from continuing alleged practices that they say violate US antitrust laws.

Reasons for the Motion

Musk’s lawyers claim that because of CEO Sam Altman’s alleged self-dealing, OpenAI "will likely lack sufficient funds to pay damages" if Musk wins the suit. 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.

Antitrust Claims

Musk’s lawyers also allege that OpenAI and Microsoft "told investors not to fund their mutual competitors," which they say violates the Sherman Act. They claim that Musk "verified that at least one major investor" that had previously contributed to an xAI funding round has since "declined to invest in xAI." Additionally, they allege that OpenAI benefits from "wrongfully obtained competitively sensitive information" gained through Microsoft connections they insist are effectively prohibited under the Clayton Act.

The Allegations

According to Musk’s lawyers, the very reason Microsoft obtained its board seat was to "coordinate business decisions with OpenAI." They claim that OpenAI and Microsoft have been working together to the detriment of their competitors, which is a violation of antitrust laws.

Response from OpenAI

OpenAI spokeswoman Hannah Wong responded to the motion, stating that "Elon’s fourth attempt, which again recycles the same baseless complaints, continues to be utterly without merit."

Update

• Added statement from OpenAI spokeswoman Hannah Wong.

Conclusion

The motion filed by Elon Musk’s lawyers aims to stop OpenAI’s transition to a for-profit enterprise and prevent the company from continuing alleged antitrust practices. The lawsuit is ongoing, and the court will have to make a decision on the motion.

Frequently Asked Questions

Q: What is the reason for the motion?
A: The motion is to stop OpenAI’s transition to a for-profit enterprise and to prevent the company from continuing alleged antitrust practices.

Q: What are the alleged antitrust practices?
A: OpenAI and Microsoft allegedly told investors not to fund their mutual competitors, and OpenAI benefits from "wrongfully obtained competitively sensitive information" gained through Microsoft connections.

Q: What is the next step in the lawsuit?
A: The court will have to make a decision on the motion, and the lawsuit is ongoing.