Elon Musk sues OpenAI to block conversion to for-profit company
Oakland, Calif. - Elon Musk's lawyers clashed with OpenAI in court Tuesday, arguing that the billionaire should be granted a court order to prevent the ChatGPT maker from transforming into a for-profit enterprise.
U.S. District Judge Yvonne Gonzalez Rogers expressed reservations about Musk's claims of irreparable harm if he were not granted an injunction to halt OpenAI's transition. However, she also raised concerns about the company's relationship with Microsoft and indicated that the case would proceed to trial.
Musk, an early investor and board member at OpenAI, filed a lawsuit against the AI firm alleging it had deviated from its original mission as a nonprofit research lab. The suit alleges that Microsoft's close partnership with OpenAI creates a conflict of interest.
Gonzalez Rogers acknowledged the high evidentiary standard required for such an injunction but has yet to rule on Musk's request.
Musk's lawsuit expands on his earlier legal actions, adding new defendants and seeking to halt OpenAI's plans to fully transition to a for-profit business. The revised complaint includes Musk's AI company, xAI, as a plaintiff.
OpenAI maintains that Musk's requested court order would hinder its operations and mission, benefiting him and his AI company. The dispute stems from a 2017 internal power struggle that led to Sam Altman becoming OpenAI's CEO.
Musk has raised concerns about the potential dangers of advanced AI, advocating for cautious development. Altman's tenure as CEO has been marked by a temporary dismissal in 2023, followed by his reinstatement.
The case also involves challenges to OpenAI's for-profit transition from other entities, including Meta Platforms and the Delaware Attorney General's office.