Antitrust Lawsuit Filed Against OpenAI by Elon Musk’s Attorneys Seeks to Stop Transition to For-Profit Company

San Francisco, California – Elon Musk’s legal team has recently filed a motion in their ongoing lawsuit against OpenAI, requesting a preliminary injunction to prevent the organization from transitioning into a for-profit entity. The motion, submitted late Friday, also seeks to halt alleged practices that Musk’s attorneys claim violate US antitrust laws. Specifically, they argue that OpenAI has engaged in self-dealing under CEO Sam Altman’s leadership, potentially leaving the organization unable to pay damages in the event that Musk prevails in court.

The latest legal action comes in response to reports indicating that OpenAI is in the process of converting into a for-profit corporation, with discussions already underway with regulators to facilitate the transition. Musk’s lawyers further contend that OpenAI and Microsoft have engaged in anti-competitive behavior by discouraging investors from supporting their mutual competitors, an alleged violation of the Sherman Act. Additionally, they claim that OpenAI has benefited from obtaining sensitive competitive information through its connections with Microsoft, actions that contravene the Clayton Act.

In a statement provided via email to The Verge, an OpenAI spokeswoman dismissed Musk’s claims as baseless and lacking in merit. The legal battle between Musk and OpenAI underscores the complexities of the tech industry and the legal challenges that can arise when prominent figures clash over business practices and competition. As the lawsuit progresses, both sides will likely continue to present arguments and evidence to support their respective positions, shaping the outcome of the case.

The motion filed by Musk’s legal team is just one development in a broader legal dispute that has captured the attention of the tech world. With stakes high and reputations on the line, the outcome of the lawsuit could have significant implications for both Musk and OpenAI. As the legal proceedings unfold, observers will undoubtedly scrutinize each new development and legal maneuver, seeking to understand the complexities of the case and its potential impact on the future of both parties involved.