In a new motion filed late Friday as part of the lawsuit against OpenAI, Elon Musk’s lawyers asked for a preliminary injunction to stop OpenAI from becoming a for-profit company, TechCrunch reports. They also asked the judge to prohibit the company from continuing the practice, which they claim violates US antitrust laws.
Musk’s lawyers argue that due to the alleged bad faith of CEO Sam Altman, OpenAI “likely will not have sufficient funds to compensate for damages” if Musk wins the lawsuit. The lawsuit was filed following reports of OpenAI’s intention to become a for-profit company and that the company had recently begun negotiations with regulators over further structural changes.
As for the antitrust claims, Musk’s lawyers argue that OpenAI and Microsoft “told investors not to fund their mutual competitors,” which they say violates the Sherman Act. They claim that Musk has “verified that at least one major investor” who previously contributed to xAI’s funding round has since “declined to invest in xAI.”
They also claim that OpenAI is benefiting from “improperly obtained competitively sensitive information” obtained through Microsoft’s connections, which they insist are effectively prohibited by the Clayton Act. The lawyers argue that “the very reason Microsoft got a seat on the board” – referring to Microsoft Vice President Dee Templeton’s time as a non-voting member of OpenAI’s board – “was to coordinate business decisions with OpenAI.”
