Elon Musk is again after OpenAI with a new court filing seeking an injunction to prevent its transition to a for-profit organization. The filing also accuses OpenAI of indulging in illicit activities.
Attorneys representing Elon Musk have filed a new motion in a California US District Court asking for a preliminary injunction to prevent OpenAI from transitioning to a for-profit organization. The filing also accuses OpenAI of indulging in anti-competitive behavior and “acting in concert with Microsoft” to stop investors from backing rivals such as xAI.
Musk “verified that at least one major investor in OpenAI’s October 2024 funding round has subsequently declined to invest in xAI”, as per the filing (PDF). “An injunction to preserve what is left of OpenAI’s nonprofit character, free from self-dealing, is the only appropriate remedy”, the filing wrote.
OpenAI was started in 2015 as a non-profit, with Musk being one of the initial funders onboard. Following Musk’s departure in 2018, Open AI transitioned to a capped-profit entity in 2019 and got Microsoft as one of its big backers.
“Elon’s fourth attempt, which again recycles the same baseless complaints, continues to be utterly without merit”, an OpenAI spokesperson told TechCrunch in a statement.
