Musk’s attorneys say if OpenAI goes for-profit, it could ‘lack sufficient funds’ for damages if Musk wins his lawsuit.
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In a new motion filed late Friday in his lawsuit against OpenAI, Elon Musk’s attorneys have asked for a preliminary injunction to stop OpenAI from transitioning to a for-profit enterprise, reports TechCrunch. They also asked the judge to forbid the company from continuing alleged practices that they say violate US antitrust laws.
Musk’s lawyers claim that because of CEO Sam Altman’s alleged self-dealing, OpenAI “will likely lack sufficient funds to pay damages” if Musk wins the suit. The motion follows reports of OpenAI’s intent to become a for-profit business and that it recently began early talks with regulators to move its structural change forward.
As for antitrust claims, the lawyers say 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” that had previously contributed to an xAI funding round has since “declined to invest in xAI.”
They also allege that OpenAI benefits from “wrongfully obtained competitively sensitive information” gained through Microsoft connections they insist are effectively prohibited under the Clayton Act. The lawyers claim that “the very reason Microsoft obtained its board seat” — referring to Microsoft VP Dee Templeton’s time as a non-voting board member at OpenAI — “was to coordinate business decisions with OpenAI.”
OpenAI did not immediately respond to The Verge’s request for comment.
