Musk Sues OpenAI, Demands Ban on Profitization and Accuses of Antitrust Violations

According to reports, later on Friday, in a lawsuit filed against OpenAI, Elon Musk's legal team submitted a new motion requesting the court to issue a preliminary injunction to prevent OpenAI from transitioning into a for-profit entity. Additionally, the attorneys are seeking to bar OpenAI from continuing activities allegedly violating U.S. antitrust laws.

Musk's lawyers contend that due to OpenAI CEO Sam Altman's involvement in self-dealing transactions, OpenAI "may lack sufficient funds to cover compensation" if Musk prevails in the lawsuit. This motion follows reports that OpenAI intends to become a for-profit company and has commenced initial negotiations with regulators regarding structural changes.

On the antitrust allegations front, Musk's attorneys claim that OpenAI and Microsoft "instructed investors not to fund their mutual competitors," which violates the Sherman Act. The lawyers also assert that Musk "confirmed that at least one major investor involved in xAI's financing round later 'refused to invest in xAI.'"

Furthermore, the legal team accuses OpenAI of obtaining "illegally acquired sensitive competitive information" through its relationship with Microsoft, contravening the Clayton Act. They maintain that Microsoft's acquisition of a seat on the OpenAI board (referring to Microsoft Vice President Dee Templeton serving as a non-voting director) was "primarily to coordinate commercial decisions with OpenAI."

OpenAI, through spokesperson Hannah Wong, issued a statement declaring that this is Musk's fourth attempt to raise the same unfounded complaints, which remain without merit.