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Elon Musk disputes OpenAI’s change to a for-profit entity

Elon Musk disputes OpenAI’s change to a for-profit entity

AFP | | Posted by Aditi Srivastava

01 December 2024 11:46 IST

Elon Musk has filed an injunction to prevent OpenAI from becoming a for-profit entity, claiming it restricts investor funding for competing firms.

Elon Musk has again asked a US court to stop ChatGPT maker OpenAI from turning into a for-profit enterprise, CNBC reported on Saturday.

Elon Musk, CEO of SpaceX and Tesla and owner of X. (Photo Reuters)
Elon Musk, CEO of SpaceX and Tesla and owner of X. (Photo Reuters)

Lawyers representing the billionaire and his artificial intelligence startup, xAI, filed the suit on Friday, the financial news site reported.

The order also calls for OpenAI to be stopped from barring its investors from funding competing companies.

The move is the latest development in a business feud between OpenAI and Musk, who co-founded the group in 2015 but has since left.

OpenAI has seen its profile skyrocket in recent years as it has become a star player in the growing field of artificial intelligence.

Musk argued that OpenAI bars its investors from investing in rivals — which would put his own startup at a disadvantage in a sector where billions of dollars are at stake.

OpenAI was founded as a non-profit organization and has since transitioned to a for-profit “limited” enterprise.

It is currently trying to become a for-profit public benefit corporation, which could attract more investment.

After he left in 2018, Musk said he was uncomfortable with the profit-driven direction the company was taking under CEO Sam Altman.

He filed a lawsuit against the company in March, accusing it of violating its original non-profit mission to make AI research available to everyone.

OpenAI argues that Musk’s process, as well as his embrace of open source development for AI, is little more than a case of sour grapes after leaving the company.

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