Elon Musk moves to halt OpenAI’s transition to for-profit status
Tesla CEO Elon Musk has requested a United States court to prevent OpenAI, the creator of generative artificial intelligence chatbot ChatGPT, from transitioning into a for-profit model, according to CNBC.
Attorneys for Musk, 53, and his AI startup, xAI, filed an injunction on Friday, aiming to halt the tech firm, owned by Sam Altman, from allegedly restricting its investors from supporting rival companies, the financial news site reported.
This legal move adds to the ongoing conflict between the tech billionaire and OpenAI, which he co-founded in 2015 but has since left.
Altman’s tech firm has rapidly gained prominence in the AI landscape, attracting substantial interest and investment.
However, Musk has alleged that OpenAI bars its investors from making investments in rivals — which would put his own startup at a disadvantage in a sector where billions of dollars are at stake.
OpenAI was founded as a non-profit and has since switched to a “capped” for-profit enterprise.
It is currently seeking to become a for-profit public benefit corporation, which could attract more investment.
After leaving in 2018, Musk said he was uncomfortable with the profit-driven direction the company was taking under the stewardship of CEO Sam Altman.
He filed a lawsuit against the company in March, accusing it of breaking its original non-profit mission to make AI research available to all.
OpenAI argues that Musk’s lawsuit, as well as his embrace of open-source development for AI, is little more than a case of sour grapes after leaving the company.
