Musk Trying to Block OpenAI Conversion to For-Profit Entity

Elon Musk is flexing his muscles to try to protect his xAI from competition.

Musk’s attorneys have filed for an injunction that would block OpenAI from converting to a fully for-profit business.

The injunction would also cover OpenAI from blocking its investors from investing in other AI ventures.

Lock It Down

OpenAI is now considered the powerhouse of the AI industry, with ChatGPT generating significant enthusiasm for the new sector of the industry.

This war between Musk and OpenAI has been going on for some time.

It was initiated by Musk, having previously filed in state court in California, a complaint that was eventually withdrawn.

Musk then refiled in federal court.

The new filing claims that OpenAI is violating RICO laws.

Musk then added to the complaint, arguing that OpenAI and Microsoft had violated anti-trust laws when it had asked its investors not to invest in any other AI companies, which included Musk’s venture.

The motion for the injunction argues that Microsoft and OpenAI should be blocked from “benefitting from wrongfully obtained competitively sensitive information or coordination via the Microsoft-OpenAI board interlocks.”

ChatGPT is now considered the leader in the industry while Musk is trying to generate interest for his AI chatbot, Grok, which first debuted in 2023.

Microsoft has already invested $14 billion into the project, recently declaring a loss of $1.5 billion during the current period.

Other than Microsoft, some of the major investors of OpenAI are Thrive Capital and Nvidia.

I have used ChatGPT, and while it is impressive, so far, I prefer the new Advanced Gemini from Google.

I have not yet tried xAI, but I am sure that if Musk is involved, it will eventually be among the leaders, if not THE leader, in the industry.