Author: Brayden Lindrea, CoinTelegraph; Translated by: Bai Shui, Golden Financial.
Billionaire Elon Musk has filed another motion to prevent the ChatGPT creator company OpenAI from transitioning to a for-profit entity while accusing the company of engaging in anti-competitive behavior.
According to a preliminary injunction motion submitted on November 30, Musk alleges that OpenAI, its CEO Sam Altman, President Greg Brockman, and shareholder Microsoft violated the terms of Musk's 'foundational donation to the charity'.
Musk co-founded OpenAI in 2015 with others and was an early board member until he left the company in 2018.
Subsequently, he launched xAI—the company behind the AI chatbot Grok—stating that the company is becoming a victim of OpenAI's anti-competitive behavior.
"The path of OpenAI transitioning from a non-profit giant to a for-profit giant is itself filled with anti-competitive behavior, blatant violations of its charitable mission, and rampant self-dealing," wrote Musk's attorney.
Excerpt from the motion filed by Elon Musk in the U.S. District Court for the Northern District of California. Source: CourtListener
Musk's attorney stated that through a 'series of exclusive arrangements' with Microsoft, the two companies engaged in 'predatory practices' that allowed them to control nearly 70% of the generative AI market:
"Microsoft and OpenAI are now seeking to solidify this dominance by cutting off competitors' access to investment capital while continuing to benefit from competitively sensitive information shared for years during the formation of generative AI."
They added that allowing such behavior to continue would harm xAI and the public, many of whom are increasingly concerned about 'hasty' and 'unsafe' AI products.
"The changes at OpenAI betray not only Musk but all of us."
California law allows non-profit organizations to convert to 'for-profit corporations', but limited liability companies are not permitted.
OpenAI points out that its core remains non-profit, but it has established a for-profit subsidiary that can issue stock to raise funds and hire world-class talent. However, these tasks will be managed under the guidance of the non-profit organization.
Musk's attorney stated that retaining the remaining non-profit nature of OpenAI is the only 'appropriate remedy'.
"No objective observer can look at OpenAI today and see any resemblance to what it promised. Enough is enough."
Source: Elon Musk.
OpenAI previously stated in a related document in October that Musk is harassing the company.
"Since founding a competing AI company xAI, Musk has been trying to leverage the judicial system to gain an advantage. This effort should fail; Musk's complaint does not present a claim and should be dismissed," OpenAI added.
In June of this year, when Apple announced it would integrate OpenAI's ChatGPT into iPhone, iPad, and Mac operating systems, Musk threatened to disable Apple devices at his company. A few months later, on October 28, Apple launched Apple Intelligence.
