Billionaire Elon Musk has filed a motion to prevent OpenAI, the innovator behind ChatGPT, from shifting towards a for-profit model. This legal action, submitted on November 30, accuses OpenAI, CEO Sam Altman, President Greg Brockman, and stakeholder Microsoft of engaging in anti-competitive practices that allegedly breach the terms of Musk’s initial contributions to the organization. Musk, who co-founded OpenAI in 2015 and was part of its board until 2018, has since founded xAI, the company behind the AI chatbot Grok.
He argues that OpenAI's current operations are detrimental to xAI's interests. Musk's legal representatives assert that OpenAI's transition from a nonprofit to a profitable entity entails anti-competitive behavior, breaches of its charitable intent, and self-serving conduct. The motion, filed in the US District Court for the Northern District of California, outlines a series of exclusive agreements between OpenAI and Microsoft, characterized by Musk's legal team as predatory.
These arrangements are said to grant the two entities control over almost 70% of the generative AI market, limiting rivals' access to necessary investment while profiting from shared sensitive information. Musk's attorneys argue that permitting these practices to persist will adversely affect xAI and the general public, who are showing heightened concern regarding the swift and potentially unsafe evolution of AI technologies.
They contend that OpenAI's departure from its foundational mission constitutes a betrayal not just to Musk but to society at large. While California regulations allow a nonprofit to transition to a for-profit corporation, OpenAI asserts it remains a nonprofit at heart, maintaining a for-profit subsidiary to secure funds and attract talent under the auspices of the nonprofit's guidance.
Musk's legal team insists that an injunction is vital to uphold OpenAI's nonprofit identity, claiming that the organization has strayed from its original commitments. OpenAI has reacted to Musk's allegations, arguing that he is utilizing the judicial system to gain a competitive edge for his AI venture, xAI.
OpenAI claims that Musk's complaint is unfounded and deserves to be dismissed. In a related occurrence, Musk threatened to eliminate Apple devices from his companies following Apple's announcement of plans to incorporate OpenAI’s ChatGPT into its operating systems. Nonetheless, Apple unveiled its own AI initiative, Apple Intelligence, on October 28..