Elon Musk asks court to block OpenAI's for-profit conversion By ...
Elon Musk has taken legal action by filing an injunction in a federal court to halt OpenAI's transition into a for-profit entity. The filings made over the weekend also highlighted concerns regarding antitrust issues related to the startup.
Legal Battle and Allegations
Attorneys representing Musk and his AI project xAI have submitted a preliminary injunction with the aim of preventing OpenAI from converting into a for-profit organization. The injunction also seeks to stop the startup from allegedly restricting its investors from supporting its competitors.
This legal move signifies a potential escalation in the ongoing legal conflict between Musk and OpenAI. Musk has previously filed multiple lawsuits against the company, citing its alleged deviation from its initial non-profit mission. The Tesla CEO has further claimed that he was deceived into donating $44 million to OpenAI. Although Musk was a co-founder of the company, he parted ways in 2018 due to disagreements regarding its objectives.
Recent Developments and Investments
Recent reports have indicated that OpenAI is contemplating shifting a portion of its operations towards a for-profit model. This strategic shift would enable OpenAI to maximize the outcomes from its immensely popular ChatGPT AI model.
Notably, OpenAI recently secured a significant $1.5 billion investment from Softbank, a Japanese conglomerate. This investment was made through a tender offer for shares owned by OpenAI employees. However, there have been speculations in the media that OpenAI is discouraging its investors from backing its competitors.
Microsoft Corporation stands out as one of the primary investors in OpenAI. Additionally, other major tech players, including NVIDIA Corporation, have participated in recent funding rounds of OpenAI.
