Elon Musk Wants OpenAI to Stop Commercialization
Date: 2024-12-02 Author: Henry Casey Categories: BUSINESS
A filing filed by the billionaire’s lawyers raises questions about the company’s operations and its interactions with investors.
The document claims that OpenAI is pressuring investors to stop supporting competitors like xAI. Musk’s lawyers are arguing for an injunction to stop the company from using confidential information obtained in an improper manner and to prevent coordination between the boards of OpenAI and Microsoft.
A representative for OpenAI responded to Musk’s demands, calling them “meritless” and “a reiteration of previous complaints that have already been dismissed.”
Musk’s lawsuit alleges that OpenAI and Microsoft are hindering competitors by restricting their access to investment. According to the document, the terms imposed on investors can be seen as an attempt at a collective boycott.
Musk’s first complaint against OpenAI was filed in March 2024. At the time, he accused the company and its CEO Sam Altman of violating the original agreement, which required OpenAI to work solely for the benefit of humanity and not for profit. The lawsuit was later withdrawn, but Musk refiled it in August of that year, expanding the list of defendants. In November, Microsoft, its vice president Dee Templeton, LinkedIn co-founder Reid Hoffman, and a former OpenAI board member were added to the list.
In October 2024, OpenAI raised $6.6 billion in funding, reaching a valuation of $157 billion. At the same time, the company actively discouraged its investors from collaborating with competitors such as Anthropic and xAI, which became one of the reasons for Musk's displeasure.
