Elon Musk seeks a court order to block OpenAI’s for-profit transition

Washington: Elon Musk has once again turned to the courts to stop OpenAI from transitioning into a for-profit entity, according to a report by CNBC. Musk, through his AI startup xAI, filed a legal injunction on Friday, requesting the court prevent OpenAI from converting into a for-profit corporation and from allegedly restricting its investors from funding competing companies.

The move marks the latest chapter in a longstanding business dispute between Musk and OpenAI. Musk co-founded OpenAI in 2015 but left the organisation in 2018 due to disagreements over its direction, particularly its shift toward profit-driven motives. Musk has previously expressed concerns over OpenAI’s move away from its initial non-profit mission of making AI research freely available to the public.

OpenAI, which started as a non-profit, has since restructured into a “capped” for-profit model and is now seeking to become a for-profit public benefit corporation. This shift is part of its strategy to attract more investment as it competes in the highly lucrative artificial intelligence sector, which has drawn significant attention and funding in recent years.

Musk has raised allegations that OpenAI’s new structure is potentially harmful to his own AI venture, claiming that OpenAI prevents its investors from investing in competing AI companies. Musk argues that this creates an unfair competitive disadvantage for his startup, which operates in the same field.

In response to Musk’s lawsuit filed in March, which accuses OpenAI of abandoning its original mission, the company has defended its actions. OpenAI contends that Musk’s legal challenges are a result of personal frustration after he departs from the company, and it insists its transition to a for-profit model is necessary to secure the resources needed for further AI research and development.