Musk recently accused multiple founders and partners of OpenAI, including Microsoft, of engaging in unfair competitive practices. Musk stated that these actions have harmed the development of his AI company xAI, requesting the court's intervention and applying for an injunction to suspend OpenAI's related activities.
Accusations against OpenAI for blocking investments, Sam Altman and Stripe engaging in self-enrichment.
Musk applied for an injunction from the United States District Court for the Northern District of California, while listing multiple accusations, mainly including:
Suppressing competitors: Musk accuses OpenAI of pressuring other investors through Microsoft to refrain from supporting OpenAI's competitors, including xAI.
Improper use of sensitive information: OpenAI is accused of using competitive information provided by Microsoft to profit.
Change in operating model: OpenAI was originally a nonprofit organization, later transforming into a 'for-profit' entity. Musk believes this violates the original public commitment made during its establishment.
Self-enrichment transactions: Accusations against OpenAI CEO Sam Altman for taking advantage of his position to collaborate with companies that have financial interests with Altman himself, such as choosing Stripe as a payment processor and profiting from it.
Musk's legal team warns that failing to promptly stop these actions will cause 'irreparable harm' to the market and public interest.
Strongly criticize OpenAI for straying from its original intention, joining to monopolize AI development
Musk was previously one of the co-founders of OpenAI, but in 2018, he expressed dissatisfaction with OpenAI's future direction and has repeatedly criticized it for deviating from its nonprofit mission. Last year, he established his own AI company xAI, launching AI models like Grok and various other services. However, Musk believes that OpenAI's actions hinder xAI's development.
According to Musk's legal team, at least one major investor has abandoned investment in xAI due to participation in OpenAI's fundraising. Additionally, the partnership between Microsoft and OpenAI is believed to potentially involve illegal sharing of proprietary data, technology, and resources, violating principles of fair market competition.
Musk was defrauded of over 40 million dollars, OpenAI denies all allegations.
Regarding Musk's latest lawsuit, an OpenAI spokesperson responded that this is Musk's 'fourth time making baseless accusations' and described it as 'exaggerated'. OpenAI had previously requested the court to dismiss Musk's lawsuit, as Musk claims he was defrauded of over 44 million dollars by OpenAI, but OpenAI states this has no legal basis.
However, Musk's lawyers warn that if the court does not take action, OpenAI will not be able to complete its corporate transformation, which could lead to significant losses for investors. According to previous reports, OpenAI is currently rapidly restructuring into a for-profit entity. If the transformation is not completed within two years, OpenAI's recent financing may turn into debt, and investors will have the right to withdraw funding.
(OpenAI will transform into a for-profit organization and has begun discussions with California regulators)
This article discusses Musk's accusations against OpenAI and Microsoft for suppressing xAI's development: defrauding over 40 million dollars, Altman and Stripe engaging in self-enrichment, first appearing in Chain News ABMedia.