In a new motion filed late Friday in their lawsuit against OpenAI, Elon Musk’s lawyers asked for a preliminary injunction to prevent OpenAI from becoming a for-profit company. information TechCrunch. They also asked the judge to prohibit the company from continuing alleged practices that they say violate U.S. antitrust laws.
Musk’s lawyers claim that due to CEO Sam Altman’s alleged self-dealing, OpenAI “will likely lack sufficient funds to pay damages” if Musk wins the lawsuit. The motion comes after reports that OpenAI intends to become a for-profit company and that it recently started the first conversations with regulators to promote structural change.
As for the antitrust claims, Musk’s lawyers allege that OpenAI and Microsoft “told investors not to fund their mutual competitors,” which they say violates the Sherman Act. And they claim that Musk “verified that at least one major investor” who had previously contributed to an xAI funding round has since “refused to invest in xAI.”
They also allege that OpenAI benefits from “improperly obtained competitively sensitive information” obtained through Microsoft connections that they insist are effectively prohibited under the Clayton Act. The lawyers claim that “the real reason Microsoft got its board seat” – referring to the time Microsoft Vice President Dee Templeton was a non-voting member of OpenAI’s board – “was to coordinate business decisions with OpenAI.
OpenAI spokesperson Hannah Wong said in a statement emailed to The edge:
Elon’s fourth attempt, which again recycles the same baseless complaints, remains completely baseless.
Update November 30: Added a statement from OpenAI spokesperson Hannah Wong.