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Musk again calls for stopping OpenAI from turning into a for-profit model
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2024-12-02 12:03 6,500

Musk again calls for stopping OpenAI from turning into a for-profit model

Author: Brayden Lindrea, CoinTelegraph; Compiled by: Whitewater, Golden Finance

Billionaire Elon Musk has filed another motion to prevent ChatGPT creator company OpenAI from transforming into for-profit business, while alleging that the company has been engaging in anti-competitive conduct.

According to the preliminary injunction motion filed on November 30, Musk accused OpenAI, its CEO Sam Altman, President Greg Brockman and shareholder Microsoft of violating Musk's " Basic Contribution to the Charity” clause.

Musk co-founded OpenAI in 2015 and was an early board member until leaving the company in 2018.

He has since launched xAI – the company behind the AI ​​chatbot Grok – which he says is falling victim to OpenAI’s anti-competitive behavior.

“OpenAI’s path from a nonprofit to a for-profit giant has itself been fraught with anticompetitive conduct, blatant violations of its philanthropic mission, and rampant self-dealing,” Musk’s lawyers wrote.

Excerpt from Elon Musk’s motion in the U.S. District Court for the Northern District of California. Source: CourtListener

Musk’s lawyers say that through a “series of exclusive arrangements” with Microsoft, the two companies engaged in “predatory practices” that allowed them to control nearly 70% of generated artificial intelligence Market:

“Microsoft and OpenAI now seek to solidify this dominance by cutting off rivals’ access to investment capital while continuing to grow from generative AI They added that allowing this behavior to continue would harm xAI and the public, many of whom are increasingly concerned about the "rush" and " "Unsafe" artificial intelligence products.

“OpenAI’s changes betray not only Musk, but all of us.”

California law allows nonprofits to convert into “for-profit corporations,” but not LIMITED.

OpenAI notes that it remains non-profit at its core but has established a for-profit subsidiary with the ability to issue stock to raise capital and hire world-class talent. However, these tasks will be administered under the guidance of the nonprofit organization.

Musk’s lawyers said an injunction that would preserve OpenAI’s remaining non-profit status was the only “appropriate remedy.”

“No objective observer could look at OpenAI today and say it’s anything like what it promised. Enough is enough. ”

Source: Elon Musk

A previous related document from OpenAI in October Zhong said that Musk is harassing the company.

"Since establishing a competing artificial intelligence company, xAI, Musk has tried to use the judicial system to gain an advantage. This effort should fail; Musk's complaint does not state a claim and should be dismissed," OpenAI added.

In June of this year, when Apple announced that it would integrate OpenAI's ChatGPT into iPhone, iPad, and Mac operations System, Musk threatened to ban Apple devices from his company. A few months later, Apple launched Apple Intelligence on October 28.

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