Elon Musk is seeking a court injunction to prevent OpenAI from transitioning into a fully for-profit business. Musk, along with his AI startup xAI and former OpenAI board member Shivon Zilis, filed for a preliminary injunction against OpenAI, accusing the company of asking investors to avoid funding competitors. The legal battle stems from allegations of OpenAI violating federal racketeering laws and antitrust laws by allegedly preventing investment in rival companies, including Musk’s xAI. OpenAI, which has become a major player in the AI industry with its ChatGPT product, is in the process of converting to a for-profit public benefit corporation. Microsoft, a major investor in OpenAI, has faced financial losses due to its involvement with the company. Musk’s attorneys argue that OpenAI should not be allowed to benefit from competitively sensitive information shared through board interlocks with Microsoft. The legal dispute reflects the growing competition and investments in the generative AI market, which is forecasted to exceed $1 trillion in revenue within the next decade. Musk’s xAI startup is also raising funds to compete in this lucrative market. The Federal Trade Commission is monitoring investments and partnerships in the AI industry, including those involving OpenAI, Microsoft, and other major players.
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