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OpenAI Seeks Court Order to Restrain Elon Musk in Escalating Legal Battle
San Francisco, CA β OpenAI has requested a federal court to prevent Elon Musk from continuing what it alleges are unfair attacks against the artificial intelligence firm. This move represents the latest development in a contentious dispute between the AI startup and the prominent tech entrepreneur following a lawsuit filed by Musk last year.
OpenAI Accuses Musk of “Taking Down” the Company
In a court document submitted in San Francisco, OpenAI asserted that Mr. Musk has embarked on a “project to dismantle OpenAI.” The company is seeking a court order to halt the tech magnate from pursuing “further unlawful and unjust actions” aimed at OpenAI. Furthermore, they are requesting the court to hold Mr. Musk liable for any damages inflicted upon the organization.
Escalating Acrimony Between Former Partners
This legal filing underscores the deepening animosity between Mr. Musk, a co-founder of OpenAI, and the company, particularly concerning the trajectory of rapidly advancing AI technology. Last August, Mr. Musk initiated legal proceedings against OpenAI and its co-founders, Sam Altman and Greg Brockman, claiming they were prioritizing commercial objectives and artificial intelligence development over ethical considerations and the broader public interest.
OpenAI Countersues, Alleging “Bad-Faith Tactics”
OpenAI released a statement contending that, “Elon continues to employ bad-faith tactics in an attempt to impede OpenAI for his own personal gain. These endeavors are anti-competitive and contradict our mission, hence our countersuit filed today to put an end to them.”
Background of the OpenAI-Musk Dispute
Mr. Musk played a pivotal role in establishing OpenAI as a nonprofit entity in late 2015, alongside Mr. Altman and others. However, the partnership deteriorated due to disagreements regarding company control and the future path of artificial intelligence, ultimately leading to Mr. Musk‘s departure. Since then, OpenAI has become a leading force in the AI sector with products like ChatGPT, attracting hundreds of millions of users. Mr. Altman has successfully secured billions in investment for OpenAI to advance AI technologies.
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Musk’s Previous Attempt to Acquire OpenAI
In the preceding year, OpenAI initiated plans to transition control from the nonprofit structure to its investors. Shortly after, Mr. Musk launched his lawsuit against OpenAI, Mr. Altman, and Mr. Brockman, alleging breaches of the company’s founding agreement by prioritizing commercial interests over the public good.
Earlier this year, Mr. Musk, in collaboration with a group of investors, made an offer to acquire the assets of the nonprofit organization overseeing OpenAI for a sum exceeding $97 billion. OpenAI‘s board of directors rejected this acquisition proposal.
OpenAI Dismisses Musk’s Acquisition Bid as “Fake”
Within Wednesday’s court filing, OpenAI characterized Mr. Musk‘s bid to purchase the company as disingenuous and refuted his claims concerning OpenAI‘s efforts to modify its corporate framework.
The filing further stated, “Musk disseminates the incorrect assertion that OpenAI intends to βconvertβ from a nonprofit to a for-profit enterprise.”
Planned Restructuring as a Public Benefit Corporation
OpenAI has clarified its intention to restructure as a public benefit corporation (PBC). This corporate model, while for-profit, is specifically designed to generate public and societal advantages.
Petition for Investigation into OpenAI’s Corporate Restructuring
In a separate development on Wednesday, a coalition composed of nonprofit, labor, and philanthropic figures submitted a formal petition to California Attorney General Rob Bonta. This petition requests an official inquiry into OpenAI‘s proposed conversion into a public benefit corporation.
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