Elon Musk Files Motion to Block OpenAI’s For-Profit Transition Amid Antitrust Allegations

Elon Musk Files Motion to Block OpenAI’s For-Profit Transition Amid Antitrust Allegations

Elon Musk has taken another step in his legal battle against OpenAI, filing a motion late Friday to block the company from transitioning to a for-profit business model. Musk’s attorneys argue that such a shift, coupled with alleged antitrust violations, could leave OpenAI unable to pay damages if Musk prevails in his lawsuit.

The motion, first reported by TechCrunch, accuses OpenAI CEO Sam Altman of “self-dealing,” which Musk’s team claims could jeopardize the company’s financial stability. This comes amidst reports that OpenAI has initiated discussions with regulators about restructuring as a for-profit entity.

Alleged Antitrust Violations

Musk’s lawsuit also includes claims that OpenAI and its key partner Microsoft violated U.S. antitrust laws. The allegations suggest that both companies discouraged investors from backing competing AI ventures, a move Musk’s lawyers argue contravenes the Sherman Act. Furthermore, the motion accuses OpenAI of benefiting from confidential information obtained through Microsoft’s involvement, purportedly violating the Clayton Act.

A Broader Feud

This legal dispute marks a continuation of Musk’s public fallout with OpenAI, which he co-founded as a nonprofit research lab before parting ways. His grievances now extend to claims of unfair business practices that, he asserts, have also impacted xAI, Musk’s own AI startup.

The case underscores the growing tensions in the AI industry as companies navigate the competitive and regulatory complexities of a rapidly evolving market.

OpenAI spokeswoman Hannah Wong said in a statement emailed to The Verge:

Elon’s fourth attempt, which again recycles the same baseless complaints, continues to be utterly without merit.

Update November 30th: Added statement from OpenAI spokeswoman Hannah Wong.

Elon Musk Files Motion to Block OpenAI’s For-Profit Transition Amid Antitrust Allegations

News Source:theverge,This article does not represent our position.

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