Search

Elon Musk Urges Court to Block ‘Illegal’ OpenAI For-Profit Conversion

Musk and Altman worked together to launch OpenAI as a nonprofit with a stated mission to develop generative AI for the benefit of society.

Advertisement
Highlights
  • OpenAI said Musk’s filing “again recycles the same baseless complaints”
  • Musk has filed a complaint in federal court in Oakland, California
  • Musk’s lawyers wrote, saying OpenAI must play by the same rules
Elon Musk Urges Court to Block ‘Illegal’ OpenAI For-Profit Conversion

Musk first sued OpenAI in California state court in February

Photo Credit: Reuters

Elon Musk asked a federal court to block OpenAI from pursuing an “illegal” conversion to a for-profit business, saying that a pause on the ChatGPT maker's accelerating dominance is urgently needed to protect his own Artificial Intelligence (AI) startup as well as the public. 

In his latest court filing, Musk continued his months-long attack on Sam Altman, nine years after they worked together to launch OpenAI as a nonprofit with a stated mission to develop generative artificial intelligence for the benefit of society.

Musk repeated his earlier claims that OpenAI broke its promises to him and abandoned its founding purpose as a charity when it accepted billions of dollars in backing from Microsoft starting in 2019. He now says that without quick court intervention, it will soon be too late to stop Altman's “behemoth” from crushing its rivals. 

A spokesperson for OpenAI said Musk's filing “again recycles the same baseless complaints” and “continues to be utterly without merit.” 

Altman's company is in early talks with the California attorney general's office over the process to change its corporate structure, Bloomberg News reported last month.

Musk first sued OpenAI in California state court in February, dropped the case in June and filed a complaint in federal court in Oakland, California, in August.

The injunction he now seeks would put OpenAI's restructuring on hold while the legal fight plays out. He's also asking the judge to prohibit OpenAI from entering into agreements with investors to “fund no competitors” that he says violate federal antitrust laws.

“Whatever leeway OpenAI might have been due under antitrust law as a purported charity it chose to forego when it subordinated itself to Microsoft for profit,” Musk's lawyers wrote, saying OpenAI must play by the same rules as everyone else. “It cannot lumber about the marketplace as a Frankenstein, stitched together from whichever corporate forms serve the pecuniary interests of Microsoft and Altman at any given moment.”

Musk's artificial intelligence startup xAI launched last year and was valued at $50 billion in a recent funding round. It has more than doubled in value since May.

The case is Musk v. Altman, 4:24-cv-04722, US District Court, Northern District of California (Oakland).

© 2024 Bloomberg LP

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

 
Show Full Article
Please wait...
Advertisement

Related Stories

Popular Mobile Brands
  1. iQOO Z10X India Launch Date, Design, Key Features Revealed
  2. Motorola Edge 60 Pro Alleged Live Renders Leaked Online
  3. Lenovo Tipped to Launch a Snapdragon 8 Elite-Powered Gaming Tablet
  4. Nintendo Switch 2 With 7.9-Inch Screen Arrives June 5: See Price, Features
  5. Vivo V50e India Launch Date, Camera Details Revealed
  6. HMD 130 Music, HMD 150 Music With UPI Support Launched in India
  7. Lava Bold 5G With 5,000mAh Battery Unveiled in India With This Price Tag
  8. Motorola Edge 60 Fusion With MediaTek Dimensity 7400 SoC Launched in India
  9. Samsung's Tri-Fold Phone Said to Launch Only in Two Countries
  10. Ghibli Effect: ChatGPT Usage Hits Record After Rollout of Viral Feature
  1. James Webb Space Telescope Reveals a Stunning Einstein Ring in Hydrus
  2. NASA Astronaut Zena Cardman Appointed to Lead SpaceX Crew-11 Mission to ISS
  3. 444-Million-Year-Old Inside-Out Fossil Without Head And Legs Found In South Africa
  4. X-Class Solar Flare From Emerging Sunspot Causes Radio Blackouts
  5. Two New Exoplanets Found Orbiting a Star in Draco Constellation
  6. Racharikam OTT Release Date: When and Where to Watch it Online?
  7. Nintendo Switch 2 With 7.9-Inch LCD Display, Magnetic Joy-Cons Fully Unveiled; Will Launch June 5
  8. Sony Online Store Begins Accepting USDC via Crypto.com Pay in Singapore
  9. Microsoft Uses Security Copilot to Identify 20 Flaws in Open-Source Bootloaders
  10. Lenovo Tipped to Launch High-End Gaming Tablet With Snapdragon 8 Elite SoC
Gadgets 360 is available in
Download Our Apps
App Store App Store
Available in Hindi
App Store
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.
Trending Products »
Latest Tech News »