Elon Musk asks US court to stop ChatGPT maker OpenAI's transition ...
Elon Musk, the CEO of Tesla, has taken legal action by seeking a federal court injunction to prevent OpenAI from transitioning into a fully for-profit business. This move represents a significant escalation in Musk's ongoing legal dispute with the AI giant that he helped co-found.
Legal Battle
The lawsuit, filed by Musk, his AI startup xAI, and former OpenAI board member Shivon Zilis, alleges antitrust violations and monopolistic practices linked to Microsoft. Musk's legal team filed a motion for a preliminary injunction to halt OpenAI’s alleged practices, which include restricting investors from supporting competitors like xAI and benefiting from unlawfully obtained competitively sensitive information.
OpenAI, led by CEO Sam Altman, along with high-profile backers such as Microsoft and venture capitalist Reid Hoffman, has faced increasing scrutiny from Musk. Musk's team claims that OpenAI's interactions with Microsoft involve illegal monopolistic practices.
Legal Filings
Musk initially filed a lawsuit against OpenAI in March 2024 in a state court in San Francisco, later moving the case to federal court in Oakland, California. The amended lawsuit accuses OpenAI and Microsoft of violating antitrust and federal racketeering laws, arguing that their exclusive licensing agreements constitute an unauthorized merger.
The lawsuit also asserts that OpenAI coerced investors into non-compete agreements, disadvantaging competitors like xAI in the generative AI market.
Response from OpenAI
An OpenAI spokesperson dismissed Musk's claims as "utterly without merit" and stated that Musk's allegations in his fourth attempt at legal action are baseless. OpenAI refuted the accusations, labeling them as overreaching and baseless.
Meanwhile, Musk's attorneys, led by Marc Toberoff, argue that OpenAI's practices violate competitive fairness and that Microsoft's anticompetitive behavior has been escalating.
Musk's legal team demands that OpenAI's license with Microsoft be voided, and any profits deemed "ill-gotten" be divested. The ongoing legal battle underscores the complex dynamics at play in the rapidly evolving AI industry.
