OpenAI urged a California federal judge on Friday to reject Elon Musk’s request to block the company’s transition to a for-profit model. The AI firm also released emails and texts suggesting Musk initially supported the for-profit idea before leaving OpenAI over his failed bid for majority control.
Musk, a co-founder of OpenAI and now the head of rival AI firm xAI, sued the company in August, accusing it of prioritizing profits over public benefit. In November, he sought an injunction to stop OpenAI’s restructuring. OpenAI responded, calling Musk’s allegations “unsupported” and asserting he should focus on competition in the market rather than legal battles.
Musk’s lawsuit also names Microsoft, alleging a scheme to dominate the generative AI market. Microsoft denied these claims, describing its relationship with OpenAI as one of innovation and competition.
OpenAI, which began as a nonprofit in 2014, is planning to restructure into a for-profit benefit corporation, with its nonprofit arm retaining a minority stake. The company recently secured $6.6 billion in funding, potentially valuing it at $157 billion, while Musk’s xAI has raised $6 billion.