Elon Musk's Legal Team Seeks Injunction Against OpenAI's Transition to For-Profit Model Amid Alleged Antitrust Violations

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30/11/2024 23h51

**Elon Musk Seeks Injunction to Halt OpenAI's Transition to For-Profit Model Amid Legal Battle**

In a recent development, Elon Musk’s legal team has filed a motion to block OpenAI from transitioning to a for-profit enterprise, according to TechCrunch. The motion, filed late on Friday, also seeks to prevent OpenAI from continuing activities that Musk’s attorneys argue breach U.S. antitrust regulations.

The attorneys representing Musk claim that the alleged self-serving actions of OpenAI’s CEO, Sam Altman, could result in the company being unable to cover potential damages should Musk win his lawsuit. These actions reportedly coincide with OpenAI’s plans to move toward a profit-driven model, including initiating early discussions with regulators to facilitate this change.

Central to the antitrust allegations is the assertion that OpenAI and Microsoft have engaged in activities designed to stifle competition. Musk's legal team contends that both companies have discouraged investors from supporting their rivals, an action they argue is in violation of the Sherman Act. Moreover, they claim that at least one significant investor, who had previously invested in an xAI funding round, has since opted out of further investments in Musk’s ventures due to these alleged practices.

Additionally, Musk’s lawyers assert that OpenAI benefits from competitively sensitive information wrongfully accessed through its association with Microsoft. They argue this relationship should not be permissible under the Clayton Act. The motion highlights that Microsoft’s involvement on OpenAI’s board, particularly the tenure of Microsoft Vice President Dee Templeton as a non-voting board member, was strategically aimed at aligning business decisions between the two entities.

OpenAI’s spokeswoman, Hannah Wong, has responded to these allegations in a statement issued to The Verge, although the content of her response has not been disclosed in this summary. This legal confrontation highlights the complex interplay of innovation, competition, and regulatory scrutiny in the rapidly evolving field of artificial intelligence.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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