Musk escalates Altman legal feud, casts OpenAI as monopolist

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ELON Musk Accuses OpenAI of Anticompetitive Practices

ELON Musk is ramping up his feud with Sam Altman, alleging in a court filing that OpenAI is trying to corner the market for generative artificial intelligence (AI) and sacrificing safety in a race to get ahead.

Antitrust Concerns

In a revised version of a lawsuit he filed in August, Musk highlighted antitrust concerns about OpenAI’s journey from its non-profit roots in 2015 – when he and Altman worked together as founders – to its current effort to restructure as a for-profit company following billions of dollars in outside investment by Microsoft and others.

Abandonment of Charity Status

Musk, who launched his xAI startup last year, said OpenAI has now abandoned all pretence of proceeding as a charity to benefit humanity with a focus on openness and safety as it tries to complete its restructuring under a two-year deadline.

Anticompetitive Behavior

“Microsoft and OpenAI, apparently unsatisfied with their monopoly, or near so, in generative artificial intelligence are now actively trying to eliminate competitors, such as xAI, by extracting promises from investors not to fund them,” lawyers for the billionaire wrote in the amended complaint filed on Thursday (Nov 14) in federal court in Oakland, California.

Concerns about OpenAI’s Practices

Musk also expressed concern that OpenAI has “started to contract with the (US) Department of Defense” and removed a clause from its usage policies banning the use of its technology for “activity that has a high risk of physical harm” such as “weapons development” or “military and warfare”.

Conclusion

The revised lawsuit lists 26 legal claims and runs 107 pages, compared with 15 claims in the 83-page original complaint. Musk’s allegations of anticompetitive behavior and disregard for safety have raised concerns about the future of artificial intelligence development.

FAQs
Q: What is the dispute between Elon Musk and OpenAI about?

A: The dispute is about OpenAI’s restructuring as a for-profit company and its alleged anticompetitive behavior in the generative artificial intelligence market.

Q: What is xAI?

A: xAI is a startup launched by Elon Musk last year, which is developing artificial intelligence technology.

Q: What is the significance of the California Attorney General’s involvement in the lawsuit?

A: The California Attorney General’s office is involved in the lawsuit as a defendant, as OpenAI is seeking to restructure its corporate structure under a two-year deadline.

Angela Lee
Angela Lee
Director of Research

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