Elon Musk takes Sam Altman's OpenAI to court over for-profit transformation

.

Elon Musk has filed a legal injunction in a California court to stop OpenAI from transitioning to a for-profit model. Musk, who co-founded OpenAI but left in 2018 over disagreements with its leadership, accused Open AI of unfair practices that harm competitors, including his own AI company, xAI.

The lawsuit has named OpenAI, its CEO Sam Altman, President Greg Brockman, Microsoft, former OpenAI board member and LinkedIn co-founder Reid Hoffman, and others. As per reports, the allegations include:

• Discouraging investors from supporting rival AI companies like xAI
• Benefitting from confidential data shared between OpenAI and its major partner, Microsoft
• Altering OpenAI’s governance structure to a for-profit model, including transferring intellectual property
• Making OpenAI work with companies where the defendants have 'material financial interest'

Further, Musk’s attorneys have asserted that without an injunction, xAI and other companies will suffer “irreparable harm.”