lon Musk has filed a preliminary injection against OpenAI and other co-founders such as Microsoft and collaborators. The move came as a response to OpenAI’s
wish to switch to for-profit, Musk claimed that it represented anticompetitive behavior, reported TechCrunch.
The motion was filed this Friday in the U.S. District Court for the Northern District of California accusing the CEO of OpenAI, Sam Altman, President Greg Brockman from Microsoft, Reid Hoffman, and VP Dee Templeton of illegal activities. Among the allegations, we can find out how investors from OpenAI, were discouraged from backing up other projects such as Musk’s AI, Grok.
Another allegation in the motion was that OpenAI “wrongfully obtained competitively sensitive information” with Microsoft's support. There is also talk about OpenAI's governance and how switching to for-profit “transferring any material assets, including intellectual property owned, held, or controlled by OpenAI, Inc., its subsidiaries, or affiliates.”, TechCrunch reported. Elon Musk’s lawyers also talked about how OpenAI made business and collaborated with companies in which one of the defendants had a “material financial interest.”
Even more so, Musk’s attorneys state that in the case where the injection is not permitted “irreparable harm” can occur. Elon Musk’s lawyers wrote “Plaintiffs and the public need a pause,” adding that “An injunction to preserve what is left of OpenAI’s nonprofit character, free from self-dealing, is the only appropriate remedy. If not, the OpenAI promised to Musk and the public will be long gone by the time the court reaches the merits.”.
This filed motion is one of Musk’s tries to maintain the artificial intelligence company's non-profit, accusing the company of giving up its initial mission and making it available to the public and its investors. In July, Musk withdrew its suit, yet it revived it later that summer. More so, earlier this month, the company added new defendants to its list among which can find Microsoft, Hoffman, or Templeton.
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In 2015 OpenAI launched as a nonprofit organization that a few years later in 2019 became a “capped-profit” organization. And more recently, the artificial intelligence company is meaning into a fully for-profit company that, allegedly will allow OpenAI to retain its non-profit status under a separate entity.
Musk’s counsel wrote, “Musk has verified that at least one major investor in OpenAI’s October funding round has subsequently declined to invest in xAI,”. They also wrote “Maintaining OpenAI’s charitable status pending final resolution and halting further self-dealing transactions by Altman protect both the organization’s founding mission and the public interest in proper administration of charities,”.
As a response, one of OpenAI’s spokespersons wrote that “Elon’s fourth attempt, which again recycles the same baseless complaints, continues to be utter without merit”.
Further news is to be announced.
By
Eva Robinson
•
December 2, 2024 10:10 AM
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