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.
