Elon Musk Seeks Court Injunction Against OpenAI’s Profit-Driven Model

Billionaire Elon Musk has filed a new injunction in a U.S. court seeking to halt OpenAI, the creator of ChatGPT, from continuing its transition to a for-profit enterprise, according to CNBC reports.

Filed on Friday by attorneys representing Musk and his artificial intelligence startup, xAI, the injunction also requests that OpenAI be barred from allegedly preventing its investors from funding competing companies.

This legal move is the latest escalation in an ongoing business dispute between Musk and OpenAI, which he co-founded in 2015 but left in 2018 due to concerns over its direction under CEO Sam Altman.

OpenAI, originally established as a non-profit organization, has since adopted a “capped” for-profit model and is currently exploring a shift to a for-profit public benefit corporation. This change is intended to attract increased investment as the company continues to gain prominence in the rapidly growing AI sector.

Musk has accused OpenAI of deviating from its original non-profit mission to make AI research universally accessible. His legal filings claim that OpenAI’s alleged restrictions on investor activity disadvantage rival startups, including his own xAI.

OpenAI has rejected Musk’s allegations, dismissing them as a reaction to his departure from the organization. The company maintains that its current structure supports its mission to balance innovation and public benefit while ensuring sustainable growth in a highly competitive field.

The legal battle underscores the high stakes and mounting tensions in the AI industry, where major players compete for dominance in a market projected to generate billions of dollars in revenue.