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Attorneys for tech billionaire Elon Musk havefiledfor a preliminary injunction against OpenAI , several of its carbon monoxide gas - founder , and its investor and close collaborationist , Microsoft , to prevent OpenAI and other named defendants from engaging in what Musk ’s counsel claims is anticompetitive behavior .
The motion for an injunction , which was filed late on Friday in the U.S. District Court for the Northern District of California , accuses OpenAI , its CEO Sam Altman , President Greg Brockman , Microsoft , LinkedIn co - founding father and former OpenAI board phallus Reid Hoffman , and former OpenAI board phallus and Microsoft VP Dee Templeton of various illicit activities — and seek to halt them . The allegement include :
Attorneys for Musk avow that “ irreparable harm ” will result if the injunction is n’t grant .
“ complainant and the world need a pause , ” they wrote in the filing . “ An cease and desist order to preserve what is left of OpenAI ’s nonprofit fictitious character , barren from self - dealing , is the only appropriate remedy . If not , the OpenAI anticipate to Musk and the world will be long locomote by the time the motor hotel extend to the meritoriousness . ”
The motion is the in style salvo in Musk ’s legal struggle with OpenAI , which at its nub accuses the company of vacate its original nonprofit commission to make the fruits of its AI research uncommitted to all . Muskwithdrewthe suit in July , only torevive itlate this summertime . Anamended complaintearlier this calendar month name Modern defendants , let in Microsoft , Hoffman , and Templeton , and two new complainant : Shivon Zilis , a Neuralink White House and ex - OpenAI board member , and xAI .
Musk has argued in previous complaint that he ’s been nobble out of more than $ 44 million he says he donate to OpenAI by preying on his “ well - known concerns about the existential harms ” of AI . Musk , one of OpenAI ’s Colorado - founders , leftthe company in 2018 over disagreements about its steering .
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OpenAI launched in 2015 as a nonprofit , and in 2019,convertedinto a “ capped - profit ” in which the nonprofit was made the govern entity for a for - profit subsidiary . The company is in the process of convert into a fully for - net corporation that wouldreportedlyallow OpenAI to hold its nonprofit status as a separate entity .
Musk form his reply to OpenAI , xAI , last year . Soon after , the society releasedGrok , an AI fashion model that now powers a number of feature on Musk ’s social meshing , X ( formerly known as Twitter ) . xAI also offer an API that allows customers to build Grok into third - party apps , platforms , and services .
In the motion for an injunction , Musk ’s attorneys allege OpenAI is depriving xAI of capital by extracting promises from investors not to fund it and the contest . In October , the Financial Timesreportedthat OpenAI demanded investors in itslatest funding roundabstain from also fund any of OpenAI ’s challenger , let in xAI .
“ Musk has control that at least one major investor in OpenAI ’s October funding daily round has later refuse to invest in xAI , ” direction for Musk wrote .
Of course , xAI has had no trouble raising money lately . Reportedly , the startup closed a $ 5 billion round this month with participation from prominent investor include Andreessen Horowitz and Fidelity . With around $ 11 billion in the banking company , xAI is one of the best - funded AI company in the globe .
Musk ’s motion for an enjoinment also alleges that Microsoft and OpenAI continue to lawlessly portion out proprietary selective information and resources , and that several of the defendants , include Altman , are employ in self - dealing that harm marketplace contention . For example , the filing notes , OpenAI selected Stripe , a payment political platform in which Altman has “ real financial pastime , ” as OpenAI ’s payment mainframe . ( Altman is said to have madebillionsfrom his Stripe holdings . )
Microsoft , which first back OpenAI in former 2019 , has ramp up the partnership over the last several years , adorn a totality of ~$13 billion in interchange for what ’s efficaciously a 49 % post in the company ’s salary . Microsoft has also allowed OpenAI to make extensive use of its cloud computer hardware resources , enabling the startup to direct , okay - tune , and hunt AI models like those that powerChatGPT .
Hoffman ’s location on the boards of both Microsoft and OpenAI while also a partner at investiture business firm Greylock gave Hoffman a privileged view into the companies ’ dealing , Musk ’s lawyer argue . ( Hoffman stepped down from OpenAI ’s board in 2023 . ) As for Templeton , whom Microsoft brieflyappointedas a nonvoting board commentator at OpenAI , Musk ’s counsel debate that she was in a lieu to facilitate agreements between Microsoft and OpenAI that would transgress antitrust regulation .
“ Maintaining OpenAI ’s charitable status pending final resolve and halting further self - deal transactions by Altman protect both the organization ’s founding mission and the public interest in proper governance of charity , ” Musk ’s attorneys said in the filing .
Counsel for Musk wrote that if an enjoining is n’t granted , OpenAI might “ lack sufficient fund ” to pay indemnification were the court to eventually reign in Musk ’s favor . ( OpenAI isreportedlyspending more than $ 5 billion and is n’t tight to kick downstairs even . ) Moreover , they say , were a judge to interdict OpenAI ’s non-profit-making transition , it ’d be “ virtually impossible ” to “ unbend ” the society ’s transactions without “ widespread investor loss ” should OpenAI keep to swallow new investment funds .
OpenAI is under atmospheric pressure to fill in the transition quickly . Accordingto Bloomberg , investor in its latest funding daily round will be able-bodied to claw back their cash if OpenAI does n’t convert to a for - profit within two years .
“ No objective observer can expect at OpenAI today and say it carry any resemblance whatsoever to what it call to be , ” lawyer for Musk wrote . “ Plaintiffs respectfully request that the court maintain the status quo and suspension defendant ’ worsening doings until final disposition . ”
In an emailed program line , an OpenAI spokesperson enounce , “ Elon ’s 4th attempt , which again recycle the same baseless complaints , keep on to beutterly without meritoriousness . ” The company had previously sought to give the axe Musk ’s suit of clothes , calling it “ blusterous ” and groundless .
The mail service has been update with a statement from OpenAI .
