Musk submitted a motion to the court over the weekend, requesting to prohibit OpenAI from transitioning to a for-profit company, listing multiple allegations, with a hearing expected to take place in January next year. (Background: OpenAI publicly retorted Musk: General Artificial Intelligence (AGI) can benefit humanity, but 'does not mean it should be open-sourced') (Context: Musk sued OpenAI and Sam Altman: turning into Microsoft's money-printing machine, deviating from the non-profit open-source mission) Elon Musk, CEO of Tesla, is one of the original founders of OpenAI and invested $44 million in the startup. OpenAI was initially established as a non-profit organization aimed at researching and developing artificial intelligence for the benefit of all humanity, but due to differences in the company's development direction, Musk left the company in 2018. Musk's lawyers filed for an injunction against OpenAI. Earlier over the weekend, Musk's lawyers submitted another injunction motion to the U.S. District Court in California, accusing OpenAI CEO Sam Altman, President Greg Brockman, Microsoft, LinkedIn co-founder and former OpenAI board member Reid Hoffman, and former OpenAI board member and Microsoft Vice President Dee Templeton of various illegal activities. These allegations include: Preventing investors from supporting OpenAI's competitors, such as xAI founded by Musk. Benefiting from 'competitively sensitive information obtained through erroneous means' through the connection between OpenAI and Microsoft. Transforming OpenAI's governance structure into a for-profit organization and 'transferring any material assets, including the intellectual property owned, held, or controlled by OpenAI, Inc., its subsidiaries, or affiliates.' Causing OpenAI to conduct business with organizations that have 'significant economic interests' in any of the defendants. Musk's lawyers claim that if the injunction is not granted, 'irreparable harm' will follow, stating in the document: The plaintiffs and the public need to pause… preserving OpenAI's remaining non-profit nature and prohibiting self-dealing is the only appropriate remedy. Without it, the promises made by OpenAI to Musk and the public will have vanished by the time the court makes a ruling. The hearing is expected to take place in January next year. It is understood that Musk filed a lawsuit against OpenAI and Sam Altman at the San Francisco Superior Court at the end of February this year, accusing them of violating the non-profit agreement established when the company was founded, claiming that the company had become a closed subsidiary of Microsoft, maximizing profits rather than developing general artificial intelligence (AGI) for the welfare of humanity. This lawsuit was withdrawn in July but was refiled by Musk in August. According to legal documents shared in the community, a hearing regarding OpenAI's violations of antitrust practices and unfair competition with Microsoft is scheduled for January 7, 2025. Regarding Musk's latest legal actions, an OpenAI spokesperson earlier stated in a response to foreign media: Musk's fourth attempt at the same unfounded complaint is still completely baseless. The company had previously attempted to dismiss Musk's lawsuit, claiming it was 'exaggerated' and groundless. Are Musk's allegations justified? In the injunction application document, Musk's lawyers claimed that OpenAI forced investors to commit to not providing funding for either itself or its competitors: Musk has confirmed that at least one major investor in OpenAI's October financing subsequently refused to invest in xAI… xAI was harmed and unable to obtain computing resources from Microsoft on terms equivalent to those of OpenAI, and there were also exclusive exchanges of competitively sensitive information between OpenAI and Microsoft. In October, the Financial Times also reported that OpenAI required investors in the latest financing round not to provide funding to any competitors of OpenAI, including xAI. (However, xAI still completed its latest round of financing of $5 billion in November.) Additionally, earlier in November, it was reported that OpenAI was negotiating with the Bonta office regarding changes to its corporate structure, with insiders revealing to Bloomberg that OpenAI is considering transitioning to a for-profit company and may grant Sam Altman 7% equity for the first time. One of the discussed options is to become a Benefit Corporation (B Corp). Extended Reading: Bloomberg: OpenAI is in discussions with regulators about transitioning to a for-profit company, with valuation and Microsoft equity distribution being the focus. As for the relationship between OpenAI and Microsoft, the latter has invested approximately $13 billion in the former in recent years in exchange for a 49% share of the company's profits. Microsoft has also allowed OpenAI to broadly utilize its cloud hardware resources, enabling the startup to train, fine-tune, and run the artificial intelligence models that support ChatGPT. Musk's lawyers state that Microsoft's influence can easily reach agreements with OpenAI that violate antitrust rules. Related Reports: OpenAI slams Musk's sinister motives: trying to destroy what he cannot have! Attempting to seize patented technology amidst the chaos. Fully countering Musk! OpenAI showcases an 8-year-old letter in rebuttal, Musk retorts: rename it ClosedAI, and then withdraw the lawsuit. Dissatisfied with OpenAI's proposed transition to a for-profit company? The key technical figure and two important researchers leave simultaneously. OpenAI completes new financing, valuation skyrockets to $157 billion, with Microsoft, NVIDIA, and SoftBank participating, but must comply with one condition. "Musk's application for an injunction 'to stop OpenAI from transitioning to a for-profit company,' listing Sam Altman's four major offenses." This article was first published on BlockTempo (the most influential blockchain news media).