Musk demands to freeze the commercial activities of OpenAI

04.12.2024/21/30 XNUMX:XNUMX    292

Elon Musk has filed a lawsuit to halt the commercialization of OpenAI and stop alleged antitrust violations, accusing the company, its management and partners, including Microsoft, of creating unfair competition and using confidential information.

by @user850788

The essence of the petition

The petition was filed in the District Court for the Northern District of California for a preliminary injunction against OpenAI, its CEO Sam Altman, president Greg Brockman, Microsoft partners and former members of OpenAI's board of directors, including LinkedIn co-founder Reed Hoffman. Musk's main accusations include:

  1. Pressure on investors: Musk claims that OpenAI has influenced investors, forcing them to withdraw funding from competitors such as his company xAI.
  2. Confidential information: OpenAI and Microsoft, according to Musk, illegally share data and resources, which harms competitors.
  3. Commercialization: OpenAI is being accused of changing its governance structure from non-profit to for-profit, which the plaintiff says is contrary to the company's original mission.
  4. Conflict of interest: In particular, Musk points to OpenAI's partnership with the payment system Stripe, in which Sam Altman has a financial interest.
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Financial claims

Musk is seeking compensation for damages he estimates to be more than $44 million previously invested in OpenAI. The lawsuit states that OpenAI's transition to a commercial model could deprive the company of funds to pay compensation in the event of a court decision in Musk's favor.

According to Bloomberg, OpenAI spends more than $5 billion, but still remains unprofitable. Investors in the latest round of funding insist that the company's transition to a commercial structure be completed within two years, or they may withdraw their investment.

History of the conflict

Musk, one of the founders of OpenAI, left the company in 2018 due to differences in views on its development. OpenAI was originally created as a non-profit organization to openly share the results of artificial intelligence research. Musk says that its commercialization and partnership with Microsoft are contrary to these principles.




In previous lawsuits, Musk accused the defendants of fraudulent practices that he believed affected his business interests. In particular, he pointed to cases where large investors refused to fund xAI under the influence of OpenAI.

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Legal and market implications

Musk's lawsuit adds tension to the rapidly growing artificial intelligence market. According to analysts, the competition between companies engaged in AI is becoming increasingly fierce, and OpenAI's partnership with Microsoft creates a significant market advantage.

Musk is demanding that OpenAI's transition to a commercial model be suspended until the court case is resolved, which could affect investor confidence. At the same time, OpenAI denies all the accusations, calling them baseless.

Perspectives

Musk's lawsuit against OpenAI is part of a broader conflict over the direction of artificial intelligence. It can have a significant impact on the management structure of companies in this field and the formation of antimonopoly approaches in the high-tech sector.

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The article Musk demands to freeze the commercial activities of OpenAI appeared first on Curiosity.


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