Elon Musk, along with his AI startup xAI and Shivon Zilis, a former OpenAI board member, has filed a legal action against OpenAI to halt its transformation into a for-profit business model. The move is part of a wider legal dispute over alleged anti-competitive practices and consolidation of market dominance.
Elon Musk , along with his AI startup xAI and Shivon Zilis, a former OpenAI board member, has taken a firm stance against OpenAI’s shift to a fully for-profit business model.
Musk’s legal team filed for a preliminary injunction in federal court, aiming to halt this transformation. They also accused OpenAI of requiring investors to avoid funding competitors, including xAI, as part of alleged anti-competitive practices. This injunction marks a new chapter in an ongoing legal feud involving Musk, OpenAI CEO Sam Altman, Microsoft, and other prominent stakeholders like Reid Hoffman. Musk originally filed a lawsuit against OpenAI in March 2024 in a San Francisco state court but later transitioned the case to federal court.in November, Musk’s attorneys alleged violations of antitrust laws and federal racketeering statutes.
“Microsoft and OpenAI now seek to cement this dominance by cutting off competitors’ access to investment capital , while continuing to benefit from years’ worth of shared competitively sensitive information during generative AI’s formative years,” Musk’s attorneysOpenAI of benefiting from competitively sensitive information shared during its formative years.
With business spending on AI technologies skyrocketing by 500% this year alone, competition in the sector is fierce.While Musk and his team oppose OpenAI’s restructuring, the legal and competitive landscape surrounding AI remains as dynamic as ever.A versatile writer, Sujita has worked with Mashable Middle East and News Daily 24. When she isn't writing, you can find her glued to the latest web series and movies.
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