The ongoing conflict between Elon Musk and OpenAI has escalated with Musk filing a new lawsuit against the AI company. In August, Musk initiated legal action against OpenAI and its CEO, Sam Altman, accusing the company of abandoning its original mission of benefiting humanity, instead pursuing profits. The latest filings allege that OpenAI aims to monopolize the generative AI market, prioritizing military applications over safety — a move Musk argues poses significant risks.
Musk’s AI company, xAI, is nearing a $6 billion fundraising milestone, boosting its valuation to $50 billion. Recently, the lawsuit against OpenAI has been intensified, with accusations of colluding with Microsoft to dominate the generative AI (AIGC) market and sidelining rivals through illicit means. The revised complaint, now 107 pages long, outlines 26 allegations, compared to 15 in the original version.
The updated complaint claims OpenAI transformed from a non-profit to a profit-driven entity due to significant investments from external backers, including Microsoft. It highlights the exclusive licensing agreements between Microsoft and OpenAI, alleging these constitute an unapproved merger in violation of U.S. antitrust laws, and demands the court annul such agreements.
Musk has also raised concerns over OpenAI's partnerships with the U.S. Department of Defense, suggesting that the company is compromising safety by fostering military AI applications. OpenAI has denied these allegations, dismissing them as baseless and providing evidence that Musk previously supported OpenAI's profit model.
Musk's lawsuit points to a broader strategic battle over AI's future, especially regarding safety and military use. As the legal battle unfolds, it could significantly reshape the competitive landscape in the AI industry.
Meanwhile, Musk's legal issues are not limited to OpenAI. A separate lawsuit accusing him of manipulating Dogecoin has concluded, as investors withdrew appeals and sanctions requests against his lawyers. The legal battle, alleging fraud and insider trading, originally sought $258 billion in damages but has now reached a settlement pending court approval.
