OpenAI has urged a federal judge to dismiss Elon Musk’s request to stop its transition to a for-profit model. The request was made in response to a lawsuit filed by Musk in August. He accused OpenAI of violating contract provisions by focusing on profit over public good. OpenAI shared emails and texts with Musk to argue that he initially supported the for-profit structure but withdrew after failing to secure majority equity and control. Musk has since launched xAI, a competing AI company. OpenAI stated in a blog post, “Musk should be competing in the marketplace rather than the courtroom.”
Read more: All We Know About Open AI’s Sora So Far
The lawsuit has also named Microsoft and other partners as defendants, alleging attempts to monopolise the generative AI market. Microsoft denied these claims, stating, “Microsoft and OpenAI are independent companies that each pursue their own strategies and compete vigorously with each other and many others.” OpenAI denied the conspiracy allegations, describing Musk’s injunction request as based on “unsupported allegations.” Judge Yvonne Gonzalez Rogers will hear Musk’s request on January 14. The outcome could impact the restructuring of OpenAI into a for-profit benefit corporation, where its nonprofit arm would retain a minority stake.
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