Musk Sues to Stop OpenAI, Citing Antitrust Violations and Public Harm

Elon Musk has taken legal action to block OpenAI’s plans to operate as a for-profit organization, arguing that the move poses a risk of “irreparable harm” to the public. According to a late-Friday filing in the U.S. District Court in San Francisco, Musk claims the company, co-founded by Sam Altman, has engaged in anticompetitive practices that breach antitrust laws, primarily through its collaboration with Microsoft.

The legal filing alleges that OpenAI’s shift from a nonprofit to a for-profit entity contradicts its original mission. It describes this transition as involving “flagrant breaches of its charitable mission and rampant self-dealing,” per The New York Post. Musk further contends that OpenAI, now a dominant player in artificial intelligence, is operating as a “Frankenstein” organization, strategically leveraging various corporate forms to benefit Microsoft and Altman financially.

Musk’s concerns are echoed by the legal filing, which calls for an immediate halt to OpenAI’s operations under its current structure. The complaint highlights Microsoft’s multi-billion-dollar investment in OpenAI, which Musk’s legal team suggests has transformed the company into a profit-driven enterprise. “Whatever leeway OpenAI might have been due under antitrust law as a purported charity it chose to forego when it subordinated itself to Microsoft for profit,” the filing stated.

Read more: Indian News Agency Sues OpenAI, Accuses ChatGPT of Using Content Without Permission

The injunction request was filed on behalf of Musk, his AI venture xAI, and Shivon Zilis, a former OpenAI board member and current executive at Neuralink, a brain-chip company co-founded by Musk. Zilis, who shares three children with Musk, is also a party to the lawsuit.

OpenAI responded strongly to Musk’s legal move, describing it as “utterly without merit” and accusing him of rehashing arguments from previous legal challenges. According to The New York Post, Musk has a history with OpenAI, having initially been a significant backer before parting ways following a disagreement with Altman over the company’s direction.

This legal filing follows Musk’s earlier lawsuit against OpenAI in March, which he withdrew before refiling in August.

Source: The New York Post