Musk wants the court to slow OpenAI’s roll

Another bit of Elon news: on Friday, he filed a preliminary injunction against OpenAI in federal court to stop the $157 billion startup from converting into a fully for-profit business. For context, Musk, who cofounded OpenAI as a nonprofit in 2015 and left the company after a disagreement with its other cofounders over the company’s direction, already sued OpenAI twice in the last year, first in a San Francisco court in March, before dropping that lawsuit and refiling a new suit in federal court in August.

In the previous suits, Musk alleged that he was “courted and deceived” by Sam Altman and OpenAI President Greg Brockman to cofound a nonprofit while Altman always intended to build out a for-profit company under the surface. Musk, whose AI startup xAI is a competitor to OpenAI, has said in his latest injunction that OpenAI led a group boycott of investment capital blocking its current investors from investing in xAI, and that the company should be blocked from “benefitting from wrongfully obtained competitively sensitive information or coordination via the Microsoft-OpenAI board interlocks.”

Basically, Musk doesn’t want OpenAI to convert to a for-profit model, as it goes against the company’s charter, and he wants to prevent OpenAI from allegedly requiring investors to not invest in its competitors. Of course, he has 50 billion reasons to want to slow down OpenAI, given xAI’s recent fundraise, but it is interesting to see the CEO of the world’s most valuable auto company and one of its highest-profile AI companies playing defense in the court with one company, while he’s full-court pressing with the other.