Elon Musk asked the Federal Court to stop Open AI from converting into an entirely profit-making business. Attorneys are representing Musk. All of his AI startup xAI, and former OpenAI board member Shivon Zilis appointed a preliminary injunction against OpenAI on Friday.
According to the injunctions to stop Open AI from allegedly requiring all of its investors to refrain from funding the competitors including the xAI and others.
The latest court filings are representing the escalations in the legal feud between Musk and Open AI also CEO Sam Altman. This world as well as the other longer living parties and the backers that included the tech investors like Reid Hoffman and Microsoft.
Musk initially sued Open AI in March, 2024 in the San Francisco state court. That before withdrawing the complaint and refilling it several months later according to the federal court. That before any arguments and their complaints that Open AI violated the federal racketeering and RICO laws.
In the mid of November, they expanded their complaints including the allegations that Microsoft and Open AI had violated the antitrust laws. When Chat GPT maker allegedly asked the investors not to agree or not to invest in the rival companies including Musk’s newest startup.
Microsoft refused to comment.
Musk argues that OpenAI should be banned from
“benefitting from wrongfully obtained competitively sensitive information or coordination via the Microsoft-OpenAI board interlocks.”
Open AI spokesperson said
“Elon’s fourth attempt, which again recycles the same baseless complaints, continues to be utterly without merit,”
The lawyers noted in the filing
“Microsoft and OpenAI now seek to cement this dominance by cutting off competitors’ access to investment capital (a group boycott), while continuing to benefit from years’ worth of shared competitively sensitive information during generative AI’s formative years,”.
The attorneys reported that the terms that OpenAI asked the investors to agree with a “group boycott” that “blocks xAI’s access to essential investment capital.”
The lawyers later on added in the statement that Open AI
“cannot lumber about the marketplace as a Frankenstein, stitched together from whichever corporate forms serve the pecuniary interests of Microsoft.”
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