Tech billionaire Elon Musk has filed a new legal challenge against artificial intelligence company OpenAI, requesting a federal court to prevent the organization from transitioning to a for-profit structure.
The preliminary injunction, filed Friday by Musk and his AI company xAI, also aims to stop OpenAI from allegedly preventing its investors from funding competitor companies in the AI space.
This latest legal move adds another chapter to the ongoing dispute between Musk and OpenAI, which he co-founded in 2015 but departed in 2018. The Tesla CEO claims he left due to disagreements over the company's shift toward a profit-focused approach under CEO Sam Altman's leadership.
Musk's legal team argues that OpenAI has strayed from its original non-profit mission of making AI research accessible to everyone. The lawsuit also contends that Musk was defrauded of his $44 million donation to the organization.
OpenAI, which created the popular ChatGPT AI model, has evolved from a non-profit to a "capped" for-profit enterprise and is now seeking to become a for-profit public benefit corporation. The company recently secured a $1.5 billion investment from SoftBank through a share purchase from OpenAI employees.
In response to Musk's allegations, OpenAI maintains that his lawsuit and support for open-source AI development stem from regret over leaving the company. The outcome of this legal battle could shape the future of AI development and investment in the rapidly growing sector.
The case highlights tensions between maintaining open access to AI research and the need for substantial funding to advance technological development. With major tech players like Microsoft heavily invested in OpenAI, the court's decision could have far-reaching implications for the AI industry.