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

In a new motion filed late Friday in his lawsuit against OpenAI, Elon Musk’s lawyers asked for a preliminary injunction to stop OpenAI’s transition to a for-profit enterprise. rEPORTS TechCrunch. They also asked the judge to bar the company from continuing the alleged practices they say violate US antitrust laws.

Musk’s lawyers argue that because of CEO Sam Altman’s alleged proprietary business, OpenAI “probably will not have sufficient funds to pay damages” if Musk wins the lawsuit. The move follows reports that OpenAI intends to become a for-profit business, and that it has been recently began early discussions with regulators to advance its structural change.

As for the antitrust claims, the lawyers say OpenAI and Microsoft “told investors not to fund each other’s competitors,” in violation of the Sherman Act. And they claim that Musk “verified that at least one major investor” who previously contributed to an xAI funding round “refused to invest in xAI.”

They also allege that OpenAI is benefiting from “wrongfully obtained competitively sensitive information” that it obtained through its connections with Microsoft, in violation of Section 8 of the Clayton Act. Lawyers argue that “the very reason Microsoft got its board seat” — referring to the time Microsoft VP Dee Templeton was a non-voting member of OpenAI — “was to coordinate business decisions with OpenAI.” .

OpenAI did not immediately respond The Vergehis request for comment.