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Elon Musk Takes Legal Action Against OpenAI and Microsoft, Claims Antitrust Violations

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Elon Musk Takes Legal Action Against OpenAI and Microsoft, Claims
SpaceX, X (formerly known as Twitter), and Tesla CEO Elon Musk speaks during live interview with Ben Shapiro at the symposium on fighting antisemitism on January 22, 2024 in Krakow, Poland. Omar Marques/Getty Images/Getty Image

Elon Musk has filed a legal motion against OpenAI, Microsoft, and several prominent figures, accusing them of antitrust violations and self-serving practices.

The filing seeks an injunction to halt OpenAI's transition from a nonprofit to a for-profit company, claiming the move undermines its founding principles of benefiting humanity through open AI development.

Musk Accuses OpenAI and Microsoft of Anticompetitive Deals in New Legal Motion

Filed in the US District Court for the Northern District of California, the motion names OpenAI CEO Sam Altman, President Greg Brockman, and Microsoft executives among the defendants.

According to Engadget, Musk alleges that these parties engaged in anticompetitive behavior, including discouraging investors from supporting rival AI ventures like his own company, xAI. He also accuses OpenAI of exploiting sensitive information shared during its collaboration with Microsoft to gain an unfair advantage in the AI market.

Musk's filing criticizes OpenAI's shift from a nonprofit organization to a for-profit model, describing the transition as riddled with unethical practices and breaches of its original mission. The court documents argue that allowing OpenAI to proceed unchecked would harm not only Musk's interests but also public trust in AI development.

The legal dispute marks Musk's latest clash with OpenAI, an organization he helped found in 2015 but left in 2018 over disagreements about its direction.

Since then, Musk has voiced concerns over the company's growing ties with Microsoft and its decision to prioritize profit-making over transparency and public benefit.

He previously filed and later withdrew a lawsuit against OpenAI but refiled a stronger version earlier this year, now adding Microsoft as a defendant.

Musk Seeks Court Action to Preserve OpenAI's Nonprofit Mission Amid Antitrust Claims

Central to Musk's claims is the allegation that OpenAI has engaged in deals and partnerships that reinforce market dominance.

The motion accuses OpenAI and Microsoft of exclusive arrangements that block competition and alleges that Altman has prioritized contracts with companies in which he has financial stakes, further fueling Musk's call for an injunction, Mashable said.

In response, OpenAI dismissed Musk's claims as baseless and repetitive, asserting that his latest filing lacks merit. Despite the strong pushback, Musk maintains that urgent legal intervention is necessary to preserve OpenAI's original nonprofit character.

The outcome of this legal battle could have significant implications for the future of AI governance and the relationship between innovation and ethical responsibility. As the case unfolds, it underscores growing tensions in the race to dominate the rapidly evolving field of generative AI.

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