In a recent legal battle, Tesla CEO Elon Musk asked a federal court to block OpenAI’s transition from a nonprofit to a for-profit company. The court denied Musk’s request but allowed him to continue with other aspects of his lawsuit against OpenAI and its CEO, Sam Altman. The conflict stems from a dispute over control of OpenAI, which Musk co-founded in 2015. Musk left the organization in 2018, and later filed a lawsuit claiming that OpenAI and Altman had breached the company’s founding contract by prioritizing commercial interests over the public good. The lawsuit also alleges violations of antitrust laws.
Despite the court’s decision, tensions remain high between Musk and OpenAI. Earlier this year, Musk and a group of investors offered to buy OpenAI’s assets for over $97 billion, a bid that was ultimately rejected by the organization’s board of directors. This move could complicate Altman’s plans to separate the company from the nonprofit board and secure funding for new technologies. The court has agreed to an expedited trial on the core issues of the case, highlighting the urgency and public interest involved.
In response to the court’s decision, OpenAI’s spokeswoman stated that Musk had previously attempted to merge a for-profit OpenAI into Tesla, which would have benefited him personally but not served the organization’s mission or U.S. interests. Musk’s lawyer expressed satisfaction with the expedited trial and emphasized the significance of the case’s public interest implications. Meanwhile, OpenAI and its partner Microsoft continue to face a lawsuit from The New York Times for copyright infringement related to news content on A.I. systems, accusations that they deny.
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