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
By Peter Blumberg, Bloomberg | Updated: 2 December 2024 15:11 IST
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

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.

Advertisement

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.” 

Advertisement

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.

Advertisement

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.”

Advertisement

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.)

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. This Samsung Galaxy F70 Series Smartphone Will Launch in India Soon
  2. WhatsApp Testing Home Screen Voice Message Widget for Android Users: Report
  3. This Snapdragon Chipset Will Power the Poco M8 Power: See Specifications
  4. Sony Hikes Price of PS5 Standard Edition in India by Rs. 15,000
  5. Redmi K100 Pro Appears on Geekbench Ahead of Launch
  6. Flipkart Pay Later Launched in India With Flexible Repayment Options
  7. Pixel 11 Pro Gets New 'Ask More of Your Phone' Teaser Ahead of Launch
  8. Here's How Much the Vivo S2 Could Cost in India: See Expected Features
  9. Vivo S2 5G Colour Options, Dimensions Surface Ahead of Launch in India
  1. Poco M8 Power Key Specifications, Features Confirmed Days Before Launch in India
  2. Flipkart Pay Later Launched in India With Flexible Repayment Options
  3. Google Rolls Out Lyria 3.5 AI Music Model in Flow Music With Richer Melodies and Vocals
  4. Redmi K100 Series Design Teased Ahead of July 31 Launch; Redmi K100 Pro Max Promo Image Surfaces
  5. Grand Theft Auto 6 Set to Boost Sony's PS5 Amidst Rising Memory Prices
  6. OpenAI Confirms Plans for a Family of AI Hardware Products
  7. Samsung Galaxy F70 Pro 5G India Launch Teased, Flipkart Availability Confirmed
  8. iQOO Z11 Lite With 6,500mAh Battery, 50-Megapixel Camera Goes on Sale in India: Price, Offers
  9. Asus Pad India Price, RAM and Storage Variants Revealed; Sales Begin August 6
  10. Bitcoin Holds Above $63,000 as Fed Pause Lifts Crypto Market Sentiment
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.