Elon Musk Files Lawsuit to Halt OpenAI's Shift to For-Profit Model, Citing Anticompetitive Practices

Benzinga 2024-12-02

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Elon Musk has requested a federal court to halt OpenAI's transition to a fully for-profit business model and block alleged anticompetitive practices. On Friday, attorneys for Musk, his startup xAI, and former OpenAI board member Shivon Zilis filed for a preliminary injunction. They accused OpenAI of violating antitrust laws by restricting investors from funding competitors like xAI. The filing also alleges federal RICO violations and claims OpenAI, in coordination with Microsoft, benefitted from competitively sensitive information. OpenAI denies the allegations, calling Musk's claims baseless.

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