A new motion was filed by Elon Musk’s attorneys late Friday in his lawsuit against OpenAI, requesting a preliminary injunction to prevent OpenAI from transitioning to a for-profit entity, as reported by DailyTech. They also asked the judge to halt the company from continuing practices that allegedly violate US antitrust laws.
Musk’s legal team argues that due to CEO Sam Altman’s alleged self-dealing, OpenAI may not have enough funds to pay damages if Musk prevails in the lawsuit. This motion comes after reports of OpenAI’s plans to shift towards a for-profit model and engaging in early discussions with regulators to facilitate this structural change.
Regarding antitrust allegations, Musk’s lawyers claim that OpenAI and Microsoft advised investors against funding their mutual competitors, which they assert breaches the Sherman Act. They further allege that Musk confirmed at least one major investor who previously contributed to xAI funding has now opted not to invest in xAI.
Additionally, they contend that OpenAI has benefited from unlawfully obtained competitively sensitive information through Microsoft connections that are supposedly prohibited under the Clayton Act. The legal team asserts that Microsoft’s acquisition of a board seat, represented by Microsoft VP Dee Templeton’s tenure as a non-voting board member at OpenAI, was to align business decisions with OpenAI.
In response, OpenAI spokeswoman Hannah Wong stated in an email to The Verge:
“Elon’s fourth attempt, which again recycles the same baseless complaints, continues to be utterly without merit.”
Update November 30th: Added statement from OpenAI spokeswoman Hannah Wong.
