Musk Sues OpenAI and Microsoft for Anti-Competitive Behavior: Request for Injunction

Elon Musk demands legal action against OpenAI and Microsoft for anticompetitive practices that could harm xAI.

12/5/2024, 2:15 PM
Eulerpool News Dec 5, 2024, 2:15 PM

Tech billionaire Elon Musk has taken legal action against OpenAI, several of its co-founders, and Microsoft. His request for a preliminary injunction, filed with the U.S. District Court in California, aims to stop allegedly anti-competitive behavior attributed to OpenAI and Microsoft. Musk accuses the defendants, including OpenAI CEO Sam Altman and Microsoft, of engaging in unfair business practices that could harm xAI, Musk's own AI company. The allegations include:

  • Kapitalblockade: OpenAI habe Investoren verpflichtet, keine Mittel an Konkurrenzunternehmen wie xAI zu vergeben.
  • Missbrauch sensibler Informationen: OpenAI soll von vertraulichen Daten profitiert haben, die durch die Zusammenarbeit mit Microsoft zugänglich wurden.
  • Governance-Änderungen: Die Umwandlung von OpenAI von einer Non-Profit-Organisation in ein gewinnorientiertes Unternehmen.

Musk's lawyers argue that these practices could significantly restrict competition and cause irreparable harm. Founded as a nonprofit organization in 2015, OpenAI transitioned to a "capped-profit" model in 2019 and is now aiming for a complete transformation into a for-profit company. Musk, a co-founder of OpenAI, left the company in 2018 and has since accused it of betraying its original nonprofit purpose.

Musk has founded his own AI company xAI, which recently raised 5 billion US dollars in capital. Despite the inflow of funds, Musk claims that OpenAI deliberately prevents investors from investing in competitors. Microsoft, a long-time partner of OpenAI, has invested over 13 billion US dollars in the company and provides cloud resources. According to the lawsuit, Microsoft used this collaboration to promote its own interests.

Sam Altman and Reid Hoffman are also accused of gaining unfair advantages through their financial interests and board positions at OpenAI and Microsoft. OpenAI has allegedly favored Altman-friendly companies like Stripe, which Musk calls "self-enrichment." An OpenAI spokesperson called Musk's recent move "baseless and repetitive." Microsoft and the other defendants have not yet commented. If the injunction is not granted, Musk's lawyers argue, OpenAI could not only lose the lawsuit but also cause "irreparable harm" to investors and competition.

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