Elon Musk targets OpenAI’s for-profit transition in a new filing


In a new motion filed late Friday in his lawsuit against OpenAI, Elon Musk’s attorneys have asked for a preliminary injunction to stop OpenAI from transitioning to a for-profit enterprise, reports TechCrunch. They also asked the judge to forbid the company from continuing alleged practices that they say violate US antitrust laws.
Musk’s lawyers claim that because of CEO Sam Altman’s alleged self-dealing, OpenAI “will likely lack sufficient funds to pay damages” if Musk wins the suit. The motion follows reports of OpenAI’s intent to become a for-profit business and that it recently began early talks with regulators to move its structural change forward.
As for antitrust claims, the lawyers say OpenAI and Microsoft “told investors not to fund their mutual competitors,” which they say violates the Sherman Act. And they claim that Musk “verified that at least one major investor” that had previously contributed to an xAI funding round has since “declined to invest in xAI.”
They also allege that OpenAI benefits from “wrongfully obtained competitively sensitive information” gained through Microsoft connections they insist are effectively prohibited under the Clayton Act. The lawyers claim that “the very reason Microsoft obtained its board seat” — referring to Microsoft VP Dee Templeton’s time as a non-voting board member at OpenAI — “was to coordinate business decisions with OpenAI.”
OpenAI did not immediately respond to The Verge’s request for comment.
In a new motion filed late Friday in his lawsuit against OpenAI, Elon Musk’s attorneys have asked for a preliminary injunction to stop OpenAI from transitioning to a for-profit enterprise, reports TechCrunch. They also asked the judge to forbid the company from continuing alleged practices that they say violate US…
Recent Posts
- Elon Musk says Grok 2 is going open source as he rolls out Grok 3 for Premium+ X subscribers only
- FTC Chair praises Justice Thomas as ‘the most important judge of the last 100 years’ for Black History Month
- HP acquires Humane AI assets and the AI pin will suffer a humane death
- HP acquires Humane AI assets and the AI pin may suffer a humane death
- HP acquires Humane Ai and gives the AI pin a humane death
Archives
- February 2025
- January 2025
- December 2024
- November 2024
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- September 2018
- October 2017
- December 2011
- August 2010